Ananya Sharma, School of Law, Narsee Monjee Institute of Management Studies, Bengaluru
ABSTRACT
In Common Law and Civil Law both, there exist a residual of contracts that do not seem to suffer from any clear formation defect (misrepresentation, fraud, coercion, etc.), but nevertheless do not look right to the outsider. They give the impression of being very disproportionate, and one-sided which raises questions as to their fairness and, as a consequence, their validity. In almost all jurisdictions this residual category falls under the rubric of “unconscionability”.
This research paper will provide critical analysis of unconscionable contracts which are agreements that are so grossly one-sided, unfair to one of the contracting parties that the law deems them to be unenforceable. Unconscionable contracts are largely distinguished by the fact that one of the parties to the contract signed it under circumstances that included pressure, a lack of information, or because they were deceived about the terms of the agreement. This research paper examines all such circumstances that can render a contract void and unenforceable on the grounds of unconscionability. Further, it will revolve around how the Doctrine of Unconscionability is applied by the Indian Courts as per the Indian Law.
Keywords: one-sided, unconscionability, unenforceable, void, doctrine of unconscionability
