Question

Property Management Inc (PMI), presents a standard-form lease for an apartment to quentin, a potential tenant. PMI offers it on a take-it-or-leave-it basis. Quentin signs it, but later wants to withdraw from it. He is most likely to avoid enforcement of the lease on the ground of

a. economic duress

b. undue influence

c. unconscionability

d. mistake

Answer 1

Answer: unconscionability

Property Management Inc (PMI), presents a standard-form lease for an apartment to quentin, a potential tenant. PMI offers it on a take-it-or-leave-it basis. Quentin signs it, but later wants to withdraw from it. He is most likely to avoid enforcement of the lease on the ground of unconscionability.

Unconscionability is one of the ways to avoid an agreement, and these are the contracts which are profoundly prone to one party and levy unfair conditions on the other. These contracts are of two types, such as ‘procedural’ in which the entire contract is captured procedurally, whereas ‘ substantial’ covers a few provisions. Thus, in an unconscionable contract , it is always that the one party has “superior bargaining power” compared to the other one.