Investigating the Examples of Unfair Conditions in Contract

Remaining bound to and venerating the private contracts between the individuals is amongst the essential principles of contracts well accepted in all the countries and the courts should not intervene in the individuals’ private contracts. However, as a result of the economic and social relations, there are created contracts wherein there is no proportion between the exchangeable items. This has made the stronger party impose unfair conditions on the weaker party. The distinct example of such contracts is the agreements pertinent to the service-providing organizations and banks. In these contracts, due to the primary needs of the human beings and as a result of certain individuals’ monopolistic privileges, the weaker party has been forced to give up to the unfair conditions set by the stronger party. This issue has been left unpredicted in the legal systems of the majority of the countries and the predicted examples, if any, pertain to certain cases hence not all the unjust contracts are covered and a general maxim cannot be drawn based thereon. The present article tries a brief investigation of the domestic laws and the regulations of some other major legal systems to deal with the nature, criteria and examples of such unfair conditions so that steps can be taken in moderating them in the contracts.