Unconscionable Contract or Clause

13 GCA § 2302, under Sales.

13 GCA § 2302

(1) If the court as a matter of law finds the contract or any clause of the contract to have been unconscionable at the time it was made the court may refuse to enforce the contract, or it may enforce the remainder

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of the contract without the unconscionable clause, or it may so limit the application of any unconscionable clause as to avoid any unconscionable result. (2) When it is claimed or appears to the court that the contract or any clause thereof may be unconscionable the parties shall be afforded a reasonable opportunity to present evidence as to its commercial setting, purpose and effect to aid the court in making the determination. COMMENT: Section 2302 is identical to Section 2-302 of the 1972 Official Text of the Uniform Commercial Code. For purpose and effect, see Official Comment. California after considerable debate omitted this section on the grounds that it allows too much judicial discretion, that other California legislation gives sufficient protection to consumers and that the courts already have comparable equity powers. On Guam, however, conformity with the UCC is preferable. Adequate protection for consumers is not afforded by other statutes and the judicial power to control unconscionable contracts is better exercised explicitly rather than through strained construction and interpretation.