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Unformatted text preview: Sometimes a contract is so unfair to one party that it is said to be unconscionable and void as against public policy. This generally comes up only in cases where there is disparate bargaining power; that is where one party is not able to bargain for better terms. These types of contracts will be examined in more detail in the unit on the UCC. Frittelli’s Doughnuts and Coffee, the famous designer doughnut
shop in Beverly Hills, California, sued its landlord for damages
after it went out of business. Frittelli’s claimed that the
landlord’s 2008 renovation of the storefront caused a decrease
in sales and destroyed the company. Due to an exculpatory
clause in the lease which stated the landlord would not be
liable for injury to the tenant’s business or any loss of income
or profit, the landlord was protected in the lawsuit.
Photononstop/SuperStock rog80328_05_c05_089-110.indd 104 Generally, an illegal bargain will be void. There may be an exception if the illegal part can logically be severed from...
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