There are specific scenarios in which the civil courts may agree to rescind or invalidate a contract. The party raising questions about the contract often needs to present a compelling case as to why the contract is illegal or unfair.
One of the more common reasons that the courts set aside seemingly valid written agreements is that they deem the contract unconscionable. Understanding what makes a contract unconscionable can help employees more effectively assess contracts they sign and determine if the courts are likely to protect them because a particular agreement is unfair.
Unconscionable contracts are imbalanced
An unconscionable contract provides far more protection and benefit for one party as opposed to the other. In some cases, contracts are unconscionable due to the terms that they include.
Particularly in scenarios where contracts focus solely on the protection of an employer, the courts may agree that the document is unconscionable because it unfairly prioritizes one party over the other. Other times, the negotiation process leading to the contract signing could lead to claims that the agreement is unconscionable.
If one party coerced or threatened the other into signing, especially if there is a significant imbalance of authority between the two parties, then the courts may agree that the contract is unconscionable and that invalidating it is an appropriate legal remedy.
Reviewing the terms of an agreement, and the circumstances leading to its signing, with a professional can help work determine if they are in a position to challenge a contract they’ve signed. Lawyers can provide valuable insight into the legal obligations created by contracts and strategies for ending them early.