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Agreements Made Without a Required Competency License

Persons in specified occupations and businesses have a license or permit. Physicians, teaches, lawyers, plumbers, electricians, real estate brokers, insurance agents, and building contractors are among such persons. Licensing laws attempt to prevent incompetent and dishonest persons from harming the public. In any event, no agreement made by or with a person who lacks the required competency license may be enforced by the unlicensed person.

Agreements That Are Unconscionable

A court may find that a contract or a clause of a contract is unconscionable — that is, grossly unfair and oppressive. An unconscionable contract or contract clause offends an honest person’s conscience and sense of justice. The terms need not be criminal nor violate a statute, but simply unethical.

Contracts of adhesion are more likely to be unconscionable. This is so because in such contracts one of the parties dictates all the important terms and the weaker party must take it as offered or not contract.

If a court decides that a clause of a contract is unconscionable, it may:

a) refuse to enforce the contract;

b) enforce the contract without the unconscionable clause;

c) limit the clause’s application so that the contract is no longer unfair.

The law is not designed to relieve a person of a bad bargain. One may still be legally bound by the purchase of overpriced, poor quality, or unneeded goods.


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