LAW 506-002 – Contracts II

Restatement Second of Contracts § 364


Effect of Unfairness

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  1. Specific performance or an injunction will be refused if such relief would be unfair because
    1. the contract was induced by mistake or by unfair practices,
    2. the relief would cause unreasonable hardship or loss to the party in breach or to third persons, or
    3. the exchange is grossly inadequate or the terms of the contract are otherwise unfair.
  2. Specific performance or an injunction will be granted in spite of a term of the agreement if denial of such relief would be unfair because it would cause unreasonable hardship or loss to the party seeking relief or to third persons.