5Question: Which legal principle allows a court to invalidate a contract due to an extreme imbalance in bargaining power or unfair terms?

Tue, 05 May 2026 04:07:05 +0000

Title: Understanding the Legal Principle Behind Contract Invalidity Due to Unfair Bargaining Power In the world of contract law, not all agreements are treated equally—some are enforced, while others are declared unenforceable due to significant imbalances in power or unfair terms. The legal principle that allows courts to invalidate a contract because of disproportionate bargaining power or exploitative clauses is known as unconscionability. ### What Is Unconscionability? Unconscionability is a judicial doctrine used to prevent courts from enforcing contracts that are grossly unfair at the time of contract formation. It protects parties who may not have had a real choice or who were subjected to oppressive terms—often due to unequal bargaining power—such as between a large corporation and an individual consumer.