Business Law 1 (Chapter 16)

Substantive Unconscionability

Unconscionability that derives from contact terms that are so one-sided, unjust, or overly harsh that the contract should not be enforced.

Procedural Unconscionability

Unconscionability that derives from the process of making a contract.

Exculpatory Clause

A clause in a contract that basically frees one party (usually the drafter of the agreement) from all liability arising out of performance of the contract; generally based on factors such as consumer ignorance or a great deal of unexplained fine print that serve to deprive the less powerful party of a meaningful choice.

Adhesion Contract

A contract created by a party to an agreement that is presented to the other party on a take-it-or-leave-it basis. Such contracts are legal but are sometimes rescinded on the grounds of unconscionability and the absence of one party's free will to enter a contract.

Indivisible Contract

A contract that cannot be divided and must be performed in its entirety.

Severable Contracts

A contract whose terms can be divided.

Sabbath Laws

A law that prohibits the performance of certain activities on Sundays.

Unconscionable

A term applied to a contract in which one party has so much more bargaining power than the other party that the powerful party dictates the terms of the agreement and eliminates the other party's free will.

Gambling

Agreements in which parties pay consideration (money placed during bets) for the chance, or opportunity, to obtain an amount of money or property.

in pari delicto

In equal fault.

Capacity

The legal ability to enter into a binding contract.

Usury

The lending of money at an exorbitant or unlawful rate of interest.