Unconscionable contracts.

Practice point: A contract is unconscionable if there is an absence of meaningful choice on the part of one of the parties, together with terms which are unreasonably favorable to the other party.

Student Note: If there is a question as to a contract’s unconscionability, there must be a hearing regarding the circumstances of the contract’s signing, and the setting, purpose and effect of the disputed terms.

Case: Simar Holding Corp. v. GSC, NY Slip Op 06346 (2d Dept. 2011).

Here is the decision.

Monday’s issue: Assumption of the risk.