Utah Substantive Unconscionably is a legal doctrine that bars enforcement of a contractual provision if it is so one-sided or oppressive that it shocks the conscience. It is a type of legal defense that can be used to challenge the enforceability of a contract, and may be used to argue that a contract is void or unenforceable. There are two types of Substantive Unconscionably recognized in Utah: Procedural and Substantive. Procedural Unconscionably involves the manner in which the contract was formed and focuses on whether the parties had a fair opportunity to understand the terms of the contract before signing. Substantive Unconscionably focuses on the terms of the contract and whether they are so one-sided or oppressive that they should not be enforced. Under Utah law, a contract can be found to be substantively unconscionable if the terms are too unfair to be enforced or if the contract imposes obligations that are so onerous as to be oppressive and unconscionable.
Utah Substantive unconscionability
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FAQ
One example of substantive unconscionability is a grossly excessive price for a product.
Two general types of potentially unconscionable provisions are exculpatory clauses and disclaimers / limitations of warranty liability.
Substantive unconscionability refers to the unconscionability of the actual terms and provisions in a contract. This is different from procedural unconscionability, which refers to the actual procedures taken when entering into the contract.
Substantive unconscionability refers to an overly harsh allocation of risks or costs that is not justified by the circumstances under which the contract was made. Both procedural and substantive unconscionability must be present before a contract or clause will be held unenforceable.
Procedural unconscionability focuses on the fairness of the process leading to the formation of the agreements, while substantive unconscionability focuses on whether the terms of the agreements are so one-sided that it unfairly benefits one of the parties to the agreement.
For example, a car dealership may include a clause in a contract that states the buyer cannot sue the dealership for any reason. This clause is an example of substantive unconscionability because it unreasonably favors the dealership and precludes the buyer's meaningful choice to seek legal action if necessary.