An Economic Perspective on Legal Remedies for Unconscionable Contracts

(2010)6(1) European Review of Contract Law

11 Pages Posted: 15 Oct 2008 Last revised: 21 Nov 2014

See all articles by Qi Zhou

Qi Zhou

University of Leeds - School of Law

Date Written: October 15, 2008

Abstract

This paper applies a law-and-economics approach to the study of legal remedies for unconscionable contracts, intending to develop a theoretical framework for the private law remedies in relation to the doctrine of unconscionability. It examines how the different legal remedies will modify a contractor's incentive for unconscionable contracts. It is argued that there is a strong positive correlation between legal deterrence of unconscionable contract and disincentive for a party to trade that should be taken in consideration seriously in designing the legal remedies for unconscionable contract.

Keywords: unconscionability, contract law, legal remedies, rescission, damages

JEL Classification: K12, K13

Suggested Citation

Zhou, Qi, An Economic Perspective on Legal Remedies for Unconscionable Contracts (October 15, 2008). (2010)6(1) European Review of Contract Law. Available at SSRN: https://ssrn.com/abstract=1284963 or http://dx.doi.org/10.2139/ssrn.1284963

Qi Zhou (Contact Author)

University of Leeds - School of Law ( email )

Liberty Builidng
Leeds, LS2 9JT
United Kingdom

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