Contracts
Under New York law, a real estate contract that is 'unconscionable' may be:
AEnforced against both parties without modification
BRefused enforcement by a court, or limited to the enforcement of the non-unconscionable portion, if the court finds the contract was oppressive or unreasonably one-sided✓ Correct
COnly voided if one party was a minor
DRewritten by the court to reflect fair market terms
Explanation
Under New York's Uniform Commercial Code (applied by analogy to real estate) and common law principles, a court may decline to enforce a contract (or an unconscionable clause) that it finds was unconscionable at the time it was made — typically involving both procedural unconscionability (unfair bargaining) and substantive unconscionability (unfair terms). The court may refuse enforcement, enforce without the unconscionable clause, or limit the clause.
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Key Terms to Know
Earnest Money
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
Math Concepts
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