Contracts & Disputes

Unconscionable Conduct

In plain English

Behaviour by one party that is so unfair or harsh — usually exploiting someone's weakness — that the law steps in to undo or stop it.

What it means

Unconscionable conduct is conduct that goes against good conscience, typically where a stronger party takes unfair advantage of a weaker party's special disadvantage (such as illiteracy, age, illness, or lack of advice). It is prohibited under the Australian Consumer Law and is also a long-standing principle in equity. Courts look at the whole relationship and the bargaining behaviour, not just the contract terms. Remedies can include setting the contract aside, compensation, or orders made by a court or regulator such as the ACCC.

How it's used

Pressuring an elderly, non-English-speaking customer into signing a costly loan she clearly did not understand may amount to unconscionable conduct.

Dealing with unconscionable conduct in real life?

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