How To Prove A California Unconscionability Defense

In California, a defense of Unconscionability is defined as:
Unconscionability is a defense against the enforcement of a contract or portion of a contract if the contract is unfair or oppressive to one party in a way that suggests abuses during its formation.
It simply means:
The terms of a contract are so unjust that they unfairly favor the party who has superior bargaining power.
There are 2 elements of the defense:
- Element 1. A contract was formed by the parties. A contract was created when both parties agreed to its terms, meaning they accepted the deal and intended to be bound by it, which is a key point in discussing whether the contract might be unfair or one-sided under the unconscionability defense.
Facts that might support this element look like:
* The parties engaged in negotiations and reached a mutual agreement on the essential terms of the contract.
* Both parties signed the written agreement, indicating their intention to be bound by its terms.
* Consideration was exchanged, with one party providing a service in return for payment from the other.
* The contract was presented in a clear format, allowing both parties to understand their rights and obligations.
* There was no evidence of duress or coercion influencing either party’s decision to enter into the contract. - Element 2. Terms of contract unreasonably favor the more powerful party. Unconscionability occurs when a contract includes terms that unfairly benefit the stronger party, making it difficult for the weaker party to negotiate or understand the agreement, leading to an imbalance that is considered unjust or oppressive.
Facts that might support this element look like:
* The contract includes a clause that allows the more powerful party to unilaterally change the terms without consent from the other party.
* The more powerful party imposed a non-negotiable arbitration clause that limits the weaker party’s ability to seek legal recourse.
* The contract requires the weaker party to waive essential rights, such as the right to a jury trial, while the more powerful party retains all legal protections.
* The terms of the contract impose excessive penalties on the weaker party for minor breaches, while the more powerful party faces no similar consequences.
* The more powerful party has significantly greater bargaining power, having presented the contract on a “take it or leave it” basis with no opportunity for negotiation.
(See Sanchez v. Valencia Holding Co., LLC, 201 Cal. App. 4th 74 – Cal: Court of Appeal, 2nd Appellate Dist., 1st Div. 2011. California Code – Section 1670.5. California Civil Code ¬ß 1670.5.)
If you’re in court without a lawyer and plan to assert a Defense of Unconscionability, having a Personal Practice of Law at Courtroom5 is essential. You’ll need to make informed decisions about what to file at each phase of your case and prepare legal documents supported by thorough legal research and a strong analysis of the facts. Equip yourself with the tools and knowledge necessary to effectively present your Defense of Unconscionability.
Prove Your CA Unconscionability Defense
U.S. Civil Cases Only