The Unconscionability Clause: Friend or Foe?

contract judiciary advanced discussion

I'm convinced the unconscionability clause in Indian Contract Law is a necessary evil. In our fast-paced consumerist society, it's a godsend for the exploited, the uninformed, and the naive. Imagine buying a car without reading the fine print, only to discover you've been duped by an unscrupulous dealer. That's where the unconscionability clause comes in โ€“ it's the safety net that prevents such scams.

In the landmark case of B. S. Nath and Sons Ltd. v. Commissioner of Sales Tax, Delhi Admn., (1979) 1 SCC 537, the Supreme Court held that a contract can be set aside if it's deemed unconscionable. It's a powerful tool that's been used to protect consumers from predatory practices.

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Nandini ยท Legal Researcher

Kaisa article hai! The Unconscionability Clause is indeed a powerful tool for consumers, but its application can be tricky. In India, we have Section 28 of the Consumer Protection Act, 2019, which prohibits unfair trade practices. However, courts have been inconsistent in applying this clause. To make the most of it, one needs to study the recent judgments, especially in cases of unfair contract terms. Any recommendations for good resources on this topic?