What does Unconscionable Mean Term Paper Example | Topics and Well Written Essays - 1750 words

What does Unconscionable Mean - Term Paper Example To identify whether that a contract is unconscionable or not one must understand and analyze the questions of competency, fairness, and honesty. A competent person would never enter to an unconscionable contract. Generally, the level of competency hinges on the age of a person. For instance, an adolescent singer who signs a contract with a music executive who shows unfair favoritism towards the music company than the court can rule it as unconscionable contract due to the relative expertise and age of the music director. Questions of honesty are concerned with whether the facts of the contract have been truly represented or misrepresented by one of the parties. The Times Magazine of July 3, 1986 reports a case of frail old man aging 80 years who obtained relief after having agreed to sell his bungalow for  £2950 when the actual price should have been  £29,500. The contract was declared void and deemed an unconscionable contract. Adhesion contracts are also categorized as a form of unconscionable contract. In adhesion contracts, a contract is prepared by one party on a â€Å"take it or leave it† basis. An employee named Paul Mantor worked for circuit city during 90’s. In 1995, the company planned to enter into a contract with the employees regarding signing an agreement for an arbitration program to prevent the employees from filing lawsuits as they resulted in prohibitive litigation costs. The managers admonished the employees to sign the agreement or either be prepared for termination. Mantor resisted from signing the agreement in the first place but was forced to sign the agreement by 1998. When he was terminated in 2000, he filed a lawsuit at the trial level court where it was ruled that the problem should be solved through arbitration since he had signed the contract.