USA

15 Mental Illness or Defect

1. A person incurs only voidable contractual duties by entering into a transaction if by reason of mental illness or defect

  • he is unable to understand in a reasonable manner the nature and consequences of the transaction, or
  • he is unable to act in a reasonable manner in relation to the transaction and the other party has reason to know of his condition.

2. Where the contract is made on fair terms and the other party is without knowledge of the mental illness or defect, the power of avoidance under Subsection (1) terminates to the extent that the contract has been so performed in whole or in part or the circumstances have so changed that avoidance would be unjust. In such a case a court may grant relief as justice requires.

16 Intoxicated Persons

A person incurs only voidable contractual duties by entering into a transaction if the other party has reason to know that by reason of intoxication

  • he is unable to understand in a reasonable manner the nature and consequences of the transaction, or
  • he is unable to act in a reasonable manner in relation to the transaction.

208 Unconscionable Contract or Term

If a contract or term thereof is unconscionable at the time the contract is made a court may refuse to enforce the contract, or may enforce the remainder of the contract without the unconscionable term, or may so limit the application of any unconscionable term as to avoid any unconscionable result.

USA UCC Art 2

2-302. Unconscionable contract or Term.

1. If the court as a matter of law finds the contract or any term 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 of the contract without the unconscionable term, or it may so limit the application of any unconscionable term as to avoid any unconscionable result.

2. If it is claimed or appears to the court that the contract or any term 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.