Contracts & ExecutionQuestion 535 of 1605
A consumer home-improvement contract includes a clause forcing the homeowner to pay all of the contractor's attorney fees in any dispute, while barring the homeowner from recovering her own. Under Civil Code §1670.5, a court reviewing this provision may:
a.Enforce the clause because both parties signed
b.Refuse to enforce the clause, limit its application, or strike it as unconscionable
c.Award triple damages to the homeowner automatically
d.Refer the matter to the CSLB for mandatory arbitration
Explanation
Civil Code §1670.5 authorizes a court to refuse enforcement of an unconscionable contract or any unconscionable clause, or to limit its application, to avoid an unconscionable result. One-sided fee-shifting in a consumer contract is a classic example.
Law Reference: Civ. Code §1670.5Practice all 1605 questions free — no signup required.
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)