What is an Unconscionable Contract?

Full question:

i signed an arbitration agreement with divorce attorneys that i am malpracticing but not about the fees, other catastrophic things. i did not lose, just became homeless, and other things since they would not enforce court ordered temp or perm support for four years and my spouse after the divorce of course hid everything thanks to them. after 25 years of marriage i got not one penny while i had the attorneys to help me. i believe the agreemebnt is unconscionable, also they gave me my retaianer back because of my situation that atty took six months to finish closing arguments and other things. i filed a case in civil court and then remembered the arbitration agreement i signed which also states that i aagree not to oppose the compel of arbitration. i am in pro per and have lost everything. they did not ask spouse to pay atty fees in the end. i have nothing and also 200,000 of atty fees. its quite a mess, i must proceed and think they have robbed me of my right to the pursuit of happiness as well. my question is how much would you charge me to draft a document opposing this, which i will be filing along with my civil case. and can you tell me anything else, in case you dont draft. thanks

Category: Arbitration and Mediation
Date: 04/07/2025
State: California

Answer:

Written arbitration agreements are generally valid, enforceable and irrevocable. In rare cases, a court may set aside an arbitration clause under contract law principles. Courts have held that a party may rescind a contract for fraud, incapacity, duress, undue influence, material breach in performance of a promise, or mistake, among other grounds. If a court finds a contract to be unconscionable, it may void the contract or order corrections made to reflect the intent of the parties. The court may refuse to enforce the contract, or it may enforce the remainder of the contract without the unconscionable clause, or it may so limit the application of any unconscionable clause as to avoid any unconscionable result.

An 'unconscionable contract' has been defined to be such as no sensible man not under delusion, duress or in distress would make, and such as no honest and fair man would accept. An adhesion contract is a contract balanced in favor of one party over the other that one can assume it was not entered into on equal bargaining grounds. Adhesion contracts are usually formed when one person is in a superior bargaining position and pressures the other party into a contract with unfair or oppressive terms.

I suggest you contact a local attorney who can review all the facts and documents involved. Unfortunately, we are unable to represent individuals in drafting pleadings for a particular case.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

Can you still sue after signing an arbitration agreement?

Yes, you can still sue after signing an arbitration agreement, but the agreement may limit your ability to pursue certain claims in court. If the arbitration agreement is enforceable, you may be required to resolve disputes through arbitration instead of litigation. However, if you can prove that the agreement is unconscionable or was signed under duress, a court may allow you to proceed with your lawsuit.

What voids an arbitration agreement?

An arbitration agreement can be voided for several reasons, including fraud, duress, incapacity, or if it is deemed unconscionable. If one party was forced to sign under unfair circumstances or if the terms are extremely one-sided, a court may refuse to enforce the agreement. Additionally, if the agreement lacks mutual consent or is not properly executed, it may be invalid.

How do you rescind an arbitration agreement?

To rescind an arbitration agreement, you typically need to provide a written notice to the other party, stating your intent to withdraw from the agreement. You should also outline the reasons for rescission, such as fraud or unconscionability. It's advisable to consult with an attorney to ensure that your rescission is valid and complies with any specific requirements outlined in the agreement.

What can invalidate an arbitration agreement?

An arbitration agreement can be invalidated if it was signed under duress, if one party lacked the capacity to consent, or if it contains unconscionable terms. Additionally, if the agreement is ambiguous or fails to provide a clear process for arbitration, a court may find it unenforceable. Courts will also consider whether both parties had equal bargaining power when the agreement was made.

What makes an arbitration agreement void?

An arbitration agreement may be considered void if it was entered into based on fraud, misrepresentation, or if one party was coerced into signing it. Additionally, if the terms are excessively one-sided or if it violates public policy, a court may determine that the agreement is void. Lack of mutual consent or clarity in the terms can also lead to a finding of voidness.

What makes an arbitration agreement unenforceable?

An arbitration agreement can be deemed unenforceable if it is found to be unconscionable, if one party lacked the capacity to agree, or if it was signed under duress. Courts may also refuse to enforce an agreement that lacks mutual consent or does not provide a fair process for arbitration. Additionally, if the terms are vague or ambiguous, the agreement may not hold up in court.