Legal Definitions - unconscionable agreement

Definition: An agreement that no reasonable person would make and no honest person would accept. It is a contract that is so unfair that it is considered to be against the law.

Examples: An example of an unconscionable agreement is a contract between a landlord and a tenant that requires the tenant to pay an exorbitant amount of rent for a small, dilapidated apartment. Another example is a contract between a car dealership and a customer that includes hidden fees and charges that were not disclosed upfront.

Explanation: Unconscionable agreements are considered to be against the law because they take advantage of one party and are not fair or reasonable. The examples illustrate how one party is being taken advantage of by the other party, which is not acceptable in a legal agreement.