Onerous Contract

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Definition of 'Onerous Contract'

An onerous contract is a contract that is excessively burdensome to one party. This can be due to a number of factors, such as the contract being unfair, one-sided, or unreasonable.

Onerous contracts can be found in a variety of settings, including employment, consumer, and commercial contracts. In employment contracts, for example, an onerous contract might require an employee to work excessive hours or to perform tasks that are not related to their job duties. In consumer contracts, an onerous contract might require a consumer to pay a high price for a product or service that is not worth the cost. And in commercial contracts, an onerous contract might require one party to make a disproportionate number of concessions or to assume a disproportionate amount of risk.

Onerous contracts can be difficult to challenge. This is because courts are generally reluctant to interfere with the terms of a contract that the parties have voluntarily agreed to. However, there are a few exceptions to this rule. For example, a court may find a contract to be unenforceable if it is unconscionable. Unconscionability is a legal doctrine that allows a court to invalidate a contract if it is found to be grossly unfair or unreasonable.

In addition, a court may also find a contract to be unenforceable if it is found to be a violation of public policy. Public policy is a set of principles that are considered to be essential to the public good. Contracts that violate public policy are generally unenforceable.

If you believe that you are a party to an onerous contract, you should speak to an attorney to discuss your options.

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