ContractsIntermediateAlaska Exam

In Alaska, a contract is 'unconscionable' when it is:

ASimply a bad deal for one party
BSo one-sided or oppressive that enforcing it would be fundamentally unfairCorrect
CVerbal rather than written
DMissing standard contract terms, as is typically expected in this situation

Why So one-sided or oppressive that enforcing it would be fundamentally unfair Is Correct

Answer B: So one-sided or oppressive that enforcing it would be fundamentally unfair

A court may refuse to enforce an unconscionable contract or clause that is so unfair and one-sided — often involving unequal bargaining power or hidden terms — that enforcement would be oppressive. Both procedural unconscionability (unfair process) and substantive unconscionability (unfair terms) are relevant.

Exam Tip: Contracts

Contract questions frequently test the essential elements required for a valid contract. Remember: competent parties, mutual consent, lawful object, and sufficient consideration. Watch for void vs. voidable distinctions.

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