What does the term "unconscionable conduct" refer to in contract law?

The term "unconscionable conduct" in contract law refers to an unfair advantage taken over a vulnerable party. This principle is rooted in the idea that certain parties may be at a disadvantage due to various factors, such as a lack of knowledge, experience, or bargaining power. When one party exploits this vulnerability to impose unfair terms upon the other, it is considered unconscionable conduct.

This concept aims to protect individuals who may be unable to make fully informed decisions or who are coerced into accepting terms that are detrimental to their interests. Courts may intervene in such cases to prevent enforcement of contracts that are deemed unconscionable, thereby upholding fairness and equity in contractual relationships.

The alternatives do not capture the essence of unconscionable conduct. The notion of fair treatment does not address the exploitation aspect, while breach of contract involves non-compliance with contractual terms and frustration relates to situations where an unforeseen event makes contract performance impossible. These terms do not encompass the specific unfairness and exploitation that the concept of unconscionable conduct addresses.