I've been trying to resolve this on my own but I'm stuck fr fr.
contract has unconscionable terms. I've been dealing with this for about 2 months now and teh situation isn't improving.
The contract was signed 16 months ago. I have a copy of the original agreement. The total amount in dispute is approximately $90,000.
Am I overthinking this or is this a real legal issue worth pursuing?
I've dealt with this before.
I ended up having everything documented, which cost about $3-6 but saved me a lot more in the long run.
I've handled similar cases. Here's my take on the legal issues.
There are several legal theories that could apply here. The strongest is probably UCC Article 2, which requires showing a material breach.
I'd recommend documenting everything in writing from this point forward. Keep copies of all communications.
I went through almost the exact same thing.
What worked for me was having everything documented. It took 3-6 months but was worth it.
Yep, this is textbook.
The thing that gets people is filing with the appropriate government agency. I'd recommend gathering evidence first instead.
If you can swing it, a consultation is probably your best next move here.
Contract litigator here. Unconscionability is a powerful defense but it has a high bar. Let me explain the two-part test that courts use so you can assess whether your situation qualifies.
Courts analyze unconscionability in two dimensions: procedural and substantive. Procedural unconscionability looks at the circumstances of contract formation. Was it a take-it-or-leave-it adhesion contract? Was there unequal bargaining power? Were key terms hidden in fine print or dense legalese? Was there time pressure to sign? The more of these factors present, the stronger your procedural argument.
Substantive unconscionability looks at the actual terms themselves. Are they unreasonably favorable to one party? Common examples include one-sided indemnification clauses, mandatory arbitration with the arbitration costs borne entirely by the weaker party, liability caps that are absurdly low relative to potential damages, and unilateral modification clauses that let one party change terms without consent.
The critical thing to understand is that most courts require BOTH procedural and substantive unconscionability, though they use a sliding scale. The more extreme the substantive unfairness, the less procedural unconscionability you need to show, and vice versa. At 90K in dispute, this is absolutely worth having a litigator review the specific contract language. Many of us will do a quick review and give you an honest assessment of your chances before you commit to representation.