courts will not enforce and will, when called upon to do so, strike an unfair and unreasonable contract, or an unfair and unreasonable clause in a contract, entered into between parties who are not equal in bargaining power.
This
principle is that the courts will not
enforce and will, when called upon to do
so, strike an unfair and unreasonable
contract, or an unfair and unreasonable
clause in a contract, entered into
between parties who are not equal in
bargaining power. It is difficult to
give an exhaustive list of all bargains
of this type. No court can visualize the
different situations which can arise in
the affairs of men. One can only attempt
to give some illustrations. For
instance, the above principle will apply
where the inequality of bargaining power
is the result of the great disparity in
the economic strength of the contracting
parties. It will apply where the
inequality is the result of
circumstances, whether of the creation
of the parties or not. It will apply to
situations in which the speaker party is
