Contracts and Sales Multistate Bar Practice Exam

Which of the following is a remedy for unconscionability?

1. The court may modify the entire contract to make it fair

2. The court can enforce all provisions as written

3. The court may impose criminal penalties for the unfair terms

4. The court must uphold the contract regardless of implications

The correct answer is: The court may modify the entire contract to make it fair

The reasoning behind selecting the option that the court may modify the entire contract to make it fair centers on the doctrine of unconscionability, which aims to prevent unfair or oppressive contracts from being enforced. When a court identifies a contract as unconscionable, it recognizes that one party has taken advantage of the other, leading to terms that are grossly unfair or oppressive. In addressing unconscionability, courts often have the authority to modify the contract's terms to make them more equitable, rather than voiding the contract entirely or enforcing it as is. This remedial approach allows the court to achieve a balance between the parties, facilitating fairness and justice in contractual agreements. The other options present remedies that do not align with the typical judicial response to unconscionable contracts. For example, upholding all provisions as written ignores the need for fairness and may perpetuate the harm caused by an unconscionable agreement. Imposing criminal penalties is not a common remedy associated with contract law, as it typically deals with civil disputes rather than criminal sanctions. Similarly, the notion of upholding the contract regardless of its implications contradicts the principle behind addressing unconscionability, which seeks to remedy unjust contracts.