{"id":248,"date":"2020-04-23T10:29:47","date_gmt":"2020-04-23T10:29:47","guid":{"rendered":"http:\/\/lexforti.com\/legal-news\/?p=248"},"modified":"2021-01-17T12:14:44","modified_gmt":"2021-01-17T12:14:44","slug":"examining-the-concept-of-unconscionability-as-a-grounds-for-avoiding-an-agreement","status":"publish","type":"post","link":"https:\/\/lexforti.com\/legal-news\/examining-the-concept-of-unconscionability-as-a-grounds-for-avoiding-an-agreement\/","title":{"rendered":"Examining the concept of &#8216;unconscionability&#8217; as a grounds for avoiding an agreement"},"content":{"rendered":"\n<p><strong>Advik Rijul Jha | Jindal Global Law School | 22nd October 2019 <\/strong><\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_47_1 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"ez-toc-toggle-icon-1\"><label for=\"item-6a2fbfa615866\" aria-label=\"Table of Content\"><span style=\"display: flex;align-items: center;width: 35px;height: 30px;justify-content: center;direction:ltr;\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/label><input  type=\"checkbox\" id=\"item-6a2fbfa615866\"><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/lexforti.com\/legal-news\/examining-the-concept-of-unconscionability-as-a-grounds-for-avoiding-an-agreement\/#What_is_meant_by_unconscionability_under_contracts\" title=\"What is meant by unconscionability under contracts?\">What is meant by unconscionability under contracts?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/lexforti.com\/legal-news\/examining-the-concept-of-unconscionability-as-a-grounds-for-avoiding-an-agreement\/#Tracing_the_development_of_the_principle_of_unconscionability_under_contracts\" title=\"Tracing the development of the principle of unconscionability under\ncontracts\">Tracing the development of the principle of unconscionability under\ncontracts<\/a><ul class='ez-toc-list-level-6'><li class='ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/lexforti.com\/legal-news\/examining-the-concept-of-unconscionability-as-a-grounds-for-avoiding-an-agreement\/#%E2%80%9C2302_Unconscionable_Contract_or_Clause\" title=\"\u201c2.302.\nUnconscionable Contract or Clause\">\u201c2.302.\nUnconscionable Contract or Clause<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/lexforti.com\/legal-news\/examining-the-concept-of-unconscionability-as-a-grounds-for-avoiding-an-agreement\/#India%E2%80%99s_tryst_with_Unconscionable_Contracts\" title=\"India\u2019s tryst\nwith Unconscionable Contracts\">India\u2019s tryst\nwith Unconscionable Contracts<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/lexforti.com\/legal-news\/examining-the-concept-of-unconscionability-as-a-grounds-for-avoiding-an-agreement\/#The_Cons_of_this_principle_of_Unconscionability\" title=\"The Cons of this principle of\nUnconscionability\">The Cons of this principle of\nUnconscionability<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/lexforti.com\/legal-news\/examining-the-concept-of-unconscionability-as-a-grounds-for-avoiding-an-agreement\/#Unconscionability_as_means_of_avoiding_agreements_Law_Commission%E2%80%99s_recommendations\" title=\"Unconscionability\nas means of avoiding agreements: Law Commission\u2019s recommendations\u00a0 \">Unconscionability\nas means of avoiding agreements: Law Commission\u2019s recommendations\u00a0 <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/lexforti.com\/legal-news\/examining-the-concept-of-unconscionability-as-a-grounds-for-avoiding-an-agreement\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h5 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_meant_by_unconscionability_under_contracts\"><\/span><strong>What is meant by unconscionability under contracts?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h5>\n\n\n\n<p>Unconscionability in general parlance refers to the \u2018unequal\nbargaining power\u2019. In relation to\u00a0\ncontracts, it deals with those contracts that weigh heavily in favour of\none partyso that they are against good conscience.Such contracts are deemed\nunenforceable by courts due to the fact that no reasonable man would agree or\ngive his consent to a contract which is grossly in favour of the other party\nand accept substantial injury\/damage to himself.Free and wilful consent is one\nof the hallmarks of any contract to be deemed valid by the courts of law.\nConsent is said to be free when it is not a result of coercion, undue\ninfluence, misrepresentation,fraud or mistake.<a href=\"#_ftn1\">[1]<\/a><\/p>\n\n\n\n<p>Jurisprudence put forth by a court of law is also present in order\nto give legal backing to the analysis of whether a contract is unconscionable\nor not. In the case of <em>Earl of Chesterfield v Janssen<\/em><a href=\"#_ftn2\">[2]<\/a>it\nwas observed that <em>\u2018unconscionability can be seen from the nature and subject\nof the bargaining itself because no man would ever willingly get into acontract\nthat does not benefit him at all.<\/em>\u2019<\/p>\n\n\n\n<h5 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Tracing_the_development_of_the_principle_of_unconscionability_under_contracts\"><\/span><strong>Tracing the development of the principle of unconscionability under\ncontracts<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h5>\n\n\n\n<p>The first inkling of the birth of this concept of unconscionability\nunder contracts can be traced to the year 1856 in which the Supreme Court of\nthe United States laid the foundation for this concept through the case of <em>Post v Jones<a href=\"#_ftn3\"><strong>[3]<\/strong><\/a>.\n<\/em>The relevant part of the judgment\nis provided hereunder:<\/p>\n\n\n\n<p>\u201c<em>The contrivance of an\nauction sale under such circumstances, where the master of the Richmond was\nhopeless, helpless, and passive &#8212; where there was no market, no money, no\ncompetition &#8212; where one party had absolute power and the other no choice but\nsubmission &#8212; where the vendor must take what is offered or get nothing &#8212; is a\ntransaction which has no characteristic of a valid contract.\u201d<a href=\"#_ftn4\"><strong>[4]<\/strong><\/a><\/em><\/p>\n\n\n\n<p>This concept was then further discussed\nin 1942 in the case of <em>United States v Bethlehem Steel Corp.<a href=\"#_ftn5\"><sup><strong><sup>[5]<\/sup><\/strong><\/sup><\/a><\/em> where the Judge minced no words while dealing with the issue of\nbargaining power and inequality. The\nrelevant part of the judgment is provided hereunder:<\/p>\n\n\n\n<p><em>\u201cBut is there any principle which is more\nfamiliar or more firmly embedded in the history of Anglo-American law than the\nbasic doctrine that the courts will not permit themselves to be used as\ninstruments of inequity and injustice? Does any principle in our law have more\nuniversal application than the doctrine that courts will not enforce\ntransactions in which the relative positions of the parties are such that one\nhas unconscionably taken advantage of the necessities of the other?\u201d<a href=\"#_ftn6\"><sup><strong><sup>[6]<\/sup><\/strong><\/sup><\/a><\/em><\/p>\n\n\n\n<p>However, the\nroots of this concept were still far from being laid in the Legislative sphere.\nAnother landmark judgment specifically dealing with unconscionability of\ncontract was required to set the wheels in motion for the Legislature to come\nup with a statute to address this issue. The landmark judgment which brought about\nthis change in Legislative intent was\u00a0 that\nof <em>Campbell Soup Co. v Wentz<a href=\"#_ftn7\"><sup><strong><sup>[7]<\/sup><\/strong><\/sup><\/a><\/em>in which the court opined \u201c<em>We do\nthink, however, that a party who has offered and succeeded in getting an\nagreement as tough as this one is, should not come to a chancellor and ask court\nhelp in the enforcement of its terms. That equity does not enforce\nunconscionable bargains is too well established to require elaborate citation<\/em>.\u201d<a href=\"#_ftn8\"><sup>[8]<\/sup><\/a><\/p>\n\n\n\n<p>Finally, with the passing of Section 2-302\nof the Uniform Commercial Code<a href=\"#_ftn9\">[9]<\/a>\ndid this imperative concept of Unconscionable Contract get statutory backing.\nThe relevant clause is reproduced here for convenience: <\/p>\n\n\n\n<h6 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"%E2%80%9C2302_Unconscionable_Contract_or_Clause\"><\/span><strong><em>\u201c2.302.\nUnconscionable Contract or Clause<\/em><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h6>\n\n\n\n<ul><li><em>If\nthe court as a matter of law finds the contract or any clause of the contract\nto have been unconscionable at the time it was made the court may refuse to\nenforce the contract, or it may enforce the remainder of the contract without\nthe unconscionable clause, or it may so limit the application of any\nunconscionable clause as to avoid any unconscionable result.<\/em><\/li><li><em>\u00a0When it is claimed or appears to the court\nthat the contract or any clause thereof may be unconscionable the parties shall\nbe afforded a reasonable opportunity to present evidence as to its commercial\nsetting, purpose and effect to aid the court in making the determination.<\/em>\u201d<a href=\"#_ftn10\"><sup>[10]<\/sup><\/a><\/li><\/ul>\n\n\n\n<p>This legislation brought about much\nneeded clarity in the US with regard to unconscionable contracts apart from\nacting as a guiding light to other jurisdictions such as India which had\nearlier been flummoxed on how to approach this point of law. A number of cases\nalso came about dealing with this point of law such as <em>Williams v Walker-Thomas Furniture Co.,<a href=\"#_ftn11\"><sup><strong><sup>[11]<\/sup><\/strong><\/sup><\/a>\nMaxwell v Fidelity Financial Services, Inc.<a href=\"#_ftn12\"><sup><strong><sup>[12]<\/sup><\/strong><\/sup><\/a><\/em>and others which also aided the jurisprudence\naround this concept to develop from a judicial point of view in tandem with the\nlegislative framework which the legislation provided. The Restatement (Second)\nof Contract Law<a href=\"#_ftn13\"><sup>[13]<\/sup><\/a> in 1979 further added to\nthe jurisprudence on this contentious and important issue through Section 208.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"India%E2%80%99s_tryst_with_Unconscionable_Contracts\"><\/span><strong>India\u2019s tryst\nwith Unconscionable Contracts<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h5>\n\n\n\n<p>Moving on to the Indian experience with the concept of unconscionability of contracts, it is imperative to point out the case of <em>Poosathurai v KannappaChettair<a href=\"#_ftn14\"><strong>[14]<\/strong><\/a><\/em> which set out the elements for an unconscionable agreement in the Indian context and has been the guiding light with respect to this principle. It was observed in the aforementioned case that <em>\u201c\u2026 both the elements of <strong>dominant position and the unconscionable nature of the contract<\/strong> will have to be established, before the contract can be said to be brought about by undue influence.\u201d<\/em><\/p>\n\n\n\n<p>However, in the initial years in India, the courts had to rely on\nEnglish cases or the American standard as mentioned earlier whenever\nunconscionable contracts came before them. Even existing legislations like the\nIndian Contract Act, Specific Relief Act and the Indian Evidence Act did not\npossess requisite provisions to assist the court in these instances. Admirably\nthis could not deter the Indian courts from passing landmark judgments dealing\nwith this concept. Section 16(3)<a href=\"#_ftn15\">[15]<\/a>\nand 23<a href=\"#_ftn16\">[16]<\/a>\nof the Indian Contract Actwas used by the court for delivering judgments such\nas <em>Central Inland Water Transport Corporation\nLtd. and Anr. Etc. v Brojo Nath Ganguly and Anr.<\/em>,<a href=\"#_ftn17\"><sup>[17]<\/sup><\/a>where\nthe following was observed:<\/p>\n\n\n\n<p><em>\u201c<\/em><em>The types of contracts to which the principle formulated in this\ncase applies are not contracts which are tainted with illegality but are\ncontracts which contain terms which are so unfair and unreasonable that they\nshock the conscience of the Court. They are opposed to public policy and\nrequired to be adjudged void.\u201d<a href=\"#_ftn18\"><sup><strong><sup>[18]<\/sup><\/strong><\/sup><\/a><\/em><\/p>\n\n\n\n<p>What is astonishing and commendable in\nthis judgment is that without any established precedent or jurisprudence to\nrely on, the concept of Public Policy in contractual agreements was brought in.\nThis novel principle in contracts at that point opened an avenue for the court\nwhich never existed previously. The Indian courts could now use the object of\nPublic Policy while adjudicating upon matters concerning unconscionability of\ncontracts before them.<em>\u201cIf there is no head of public policy which covers a\ncase, then the court must in consonance with public conscience and in keeping\nwith public good and public interest declares such practice to be opposed to\npublic policy.\u201d<a href=\"#_ftn19\"><sup><strong><sup>[19]<\/sup><\/strong><\/sup><\/a><\/em><\/p>\n\n\n\n<h5 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_Cons_of_this_principle_of_Unconscionability\"><\/span><strong>The Cons of this principle of\nUnconscionability<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h5>\n\n\n\n<p>Progress with regards to the\ndevelopment of this field in visible in both jurisdictions which is\nappreciable. However, there are always two sides to a coin. Hence, there are\nsome limitations as well as to when can unconscionability in contract can be\nutilized by courts when matters come up before them.<\/p>\n\n\n\n<p>Looking at a few case laws, a similar pattern emerges wherein courts have held \u2018<em>that the role of the Courts is limited to the interpretation of the plain meaning of the contract and give effect to it, however it dislikes the result of the said plain meaning.\u2019<\/em>The cases in which the above-mentioned has been observed are <em>Indianapolis Morris Plan Co. v Sparks<a href=\"#_ftn20\"><sup><strong><sup>[20]<\/sup><\/strong><\/sup><\/a>, Central Bank of India Ltd. v Hartford Fire Insurance Co. Ltd.<a href=\"#_ftn21\"><sup><strong><sup>[21]<\/sup><\/strong><\/sup><\/a>, S.K. Jain v State of Haryana<\/em><a href=\"#_ftn22\"><sup>[22]<\/sup><\/a> and <em>LIC of India and Anr. v Consumer Education and Research Centre and Ors. Etc.<\/em><a href=\"#_ftn23\"><sup>[23]<\/sup><\/a>The case of SK Jain went a step further in this regard by observing\u201c<em>the concept of unequal bargaining power does not apply to commercial contracts<\/em>.\u201d<a href=\"#_ftn24\"><sup>[24]<\/sup><\/a> This holding is a massive indicator of the outlook of the courts with regard to commercial contracts which are the cornerstone of most agreements\/contracts in this age of increasing globalization.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Unconscionability_as_means_of_avoiding_agreements_Law_Commission%E2%80%99s_recommendations\"><\/span><strong>Unconscionability\nas means of avoiding agreements: Law Commission\u2019s recommendations\u00a0 <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h5>\n\n\n\n<p>The Law\nCommission of India being one of the primary bodies bestowed with looking into\nthe legal framework of the country and suggesting changes also had a few\nsuggestions\/observations pertaining to the concept of unconscionability of\ncontracts through the 103<sup>rd<a href=\"#_ftn25\"><sup>[25]<\/sup><\/a><\/sup>and the\n199<sup>th<a href=\"#_ftn26\"><sup>[26]<\/sup><\/a><\/sup> report.\nThe 103<sup>rd<\/sup> report did not look at the issue in great detail. The only\nrelevant outcome was that the Contract Act be amended to include the concept of\nunconscionability. <\/p>\n\n\n\n<p>The 199<sup>th<\/sup>\nreport was the one which gave the concept of unconscionability the kind of\nattention it deserved owing to the repercussions it entails in an increasingly\ncommercialized economy. Draft Bill (2006) on Unfair Terms (Procedural and\nSubstantive)<a href=\"#_ftn27\"><sup>[27]<\/sup><\/a> was\nproposed to be tabled and passed by Parliament which would serve multiple\npurposes. Going chronologically is the hallmark for any legislation thus,\nbefore legislating or laying down statutory guidelines, it was suggested to lay\ndown a workable definition of \u2018unconscionable\u2019. While laying down a statute\nsubsequently, it was suggested that a cue be taken from the United Kingdom<a href=\"#_ftn28\"><sup>[28]<\/sup><\/a> keeping\nin mind its experiences and the fact that most of our laws are based on the\ncommon law system laid down by the United Kingdom and spread through their\nprocess of colonization.\u00a0 <\/p>\n\n\n\n<h5 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><strong><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h5>\n\n\n\n<p>In conclusion, it would be apt to say that there has been significant and appreciable development around the concept of unconscionability in India. However, the current legislative framework does not provide the courts with the requisite statutory backing to enforce this concept of unconscionability of agreements strictly which is needed in an increasingly commercialized economy which strives to be a world leader in the near future. In this backdrop, it is imperative that the recommendations of the Law Commission of India are adopted and implemented to the hilt. This goal is very much achievable as can be seen through the progress which the USA and the UK have achieved in leaps and bounds till date. <br><\/p>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<p><a href=\"#_ftnref1\">[1]<\/a>\nSection 14, Indian Contract Act, 1872<\/p>\n\n\n\n<p><a href=\"#_ftnref2\">[2]<\/a>(1751)\n28 Eng Rep 82, 100.<\/p>\n\n\n\n<p><a href=\"#_ftnref3\">[3]<\/a><em>Post v Jones<\/em>,\n60 U.S. 150 (1856)<\/p>\n\n\n\n<p><a href=\"#_ftnref4\">[4]<\/a>\nId, p.159.<\/p>\n\n\n\n<p><a href=\"#_ftnref5\">[5]<\/a><em>United States v Bethlehem Steel Corp.<\/em>,\n315 U.S 289 (1942)<\/p>\n\n\n\n<p><a href=\"#_ftnref6\">[6]<\/a>\nId, p.326.<\/p>\n\n\n\n<p><a href=\"#_ftnref7\">[7]<\/a>\nCampbell Soup Co v Wentz, 172 F.2d 80 (3<sup>rd<\/sup> Cir. 1948)<\/p>\n\n\n\n<p><a href=\"#_ftnref8\">[8]<\/a> Id, p.83.<\/p>\n\n\n\n<p><a href=\"#_ftnref9\">[9]<\/a>2-302, Uniform Commercial Code,\n(1962), 20-21.<\/p>\n\n\n\n<p><a href=\"#_ftnref10\">[10]<\/a> Id, p.20.<\/p>\n\n\n\n<p><a href=\"#_ftnref11\">[11]<\/a><em>Williams v Walker-Thomas Furniture Co.,<\/em> 350 F.2d 445 (D.C. cir.1965)<\/p>\n\n\n\n<p><a href=\"#_ftnref12\">[12]<\/a><em>Maxwell v Fidelity Financial Services Inc.,<\/em> 184 Ariz. 82 (1995)<\/p>\n\n\n\n<p><a href=\"#_ftnref13\">[13]<\/a>208, Restatement (Second) of\nContract Law, 1979. 28.<\/p>\n\n\n\n<p><a href=\"#_ftnref14\">[14]<\/a><em>Poosathurai\nv KannappaChettair<\/em>,\n(1919) ILR 43 Mad 546 PC.<\/p>\n\n\n\n<p><a href=\"#_ftnref15\">[15]<\/a><em>(3) Where a person who is in a position to\ndominate the will of another, enters into a contract with him, and the transaction\nappears, on the face of it or on the evidence adduced, to be unconscionable,\nthe burden of proving that such contract was not induced by undue influence\nshall be upon the person in a position to dominate the will of the other.\nNothing in the sub-section shall affect the provisions of section 111 of the\nIndian Evidence Act, 1872 (1 of 1872).<\/em><\/p>\n\n\n\n<p><a href=\"#_ftnref16\">[16]<\/a><em>\u201c23. What consideration and objects are\nlawful, <\/em>and<em> what not.\u2014The\nconsideration or object of an agreement is lawful, unless\u2014 \u2014The consideration\nor object of an agreement is lawful, unless\u2014&#8221; it is forbidden by law; <strong>or is of such a nature that, if permitted,\nit would defeat the provisions of any law<\/strong>; or is fraudulent; or involves or\nimplies, injury to the person or property of another; or the Court regards it as\n<strong>immoral<\/strong>, or opposed to <strong>public policy<\/strong>.In each of these cases,\nthe consideration or object of an agreement is said to be unlawful. Every\nagreement of which the object or consideration is unlawful is void.\u201d<\/em><\/p>\n\n\n\n<p><a href=\"#_ftnref17\">[17]<\/a><em>Central Inland Water Transport Corporation Ltd. v Brojo Nath Ganguly and\nAnr., <\/em>1986 AIR\n1571.<\/p>\n\n\n\n<p><a href=\"#_ftnref18\">[18]<\/a>\nId, p.65.<\/p>\n\n\n\n<p><a href=\"#_ftnref19\">[19]<\/a>\nId, p.64.<\/p>\n\n\n\n<p><a href=\"#_ftnref20\">[20]<\/a><em>Indianapolis Morris Plan Co. v Sparks,<\/em> 132 Ind. App. 145 (1961)<\/p>\n\n\n\n<p><a href=\"#_ftnref21\">[21]<\/a><em>Central Bank of India Ltd. v Hartford Fire\nInsurance Co. Ltd.,<\/em> AIR 1965 SC 1288.<\/p>\n\n\n\n<p><a href=\"#_ftnref22\">[22]<\/a><em>S.K Jain v State of Haryana,<\/em> arising out\nof SLP no. 21552 of 2007.<\/p>\n\n\n\n<p><a href=\"#_ftnref23\">[23]<\/a><em>LIC of India and Anr. v Consumer Education\nand Research Centre and Ors. Etc.,<\/em> 1195 AIR 1811. <\/p>\n\n\n\n<p><a href=\"#_ftnref24\">[24]<\/a>\nSupra Note 26.<\/p>\n\n\n\n<p><a href=\"#_ftnref25\">[25]<\/a>\nLaw Commission of India, <em>103<sup>rd<\/sup>\nReport on Unfair Terms in Contract<\/em>. (1984).<\/p>\n\n\n\n<p><a href=\"#_ftnref26\">[26]<\/a>\nLaw Commission of India, <em>199<sup>th<\/sup>\nReport on Unfair (Procedural and Substantive) Terms in Contract.<\/em> (2006).<\/p>\n\n\n\n<p><a href=\"#_ftnref27\">[27]<\/a>\nId, p.193.<\/p>\n\n\n\n<p><a href=\"#_ftnref28\">[28]<\/a>\nId, p.150.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Advik Rijul Jha | Jindal Global Law School | 22nd October 2019 What is meant by unconscionability under contracts? Unconscionability in general parlance refers to the \u2018unequal bargaining power\u2019. 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