Indian Contract Act, 1872MCQQuestion 5799 of 6
All Questions

What is the term for a contract where one party is at a disadvantage due to the other party's superior position or knowledge?

Options

AUberrimae Fidei
BAleatory contract
CUnconscionable contract
DWagering contract
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Correct Answer

✅ Option C — Unconscionable contract

All Options:

  • AUberrimae Fidei
  • BAleatory contract
  • CUnconscionable contract ✓
  • DWagering contract

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Detailed Solution & Explanation

An unconscionable contract is a contract that is so one-sided or unfair that it is deemed unenforceable. This type of contract usually arises when one party has superior knowledge, power, or skill, and takes advantage of the other party's weakness or ignorance. The Indian Contract Act, 1872, provides that if a contract is unconscionable, the court may refuse to enforce it.
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