§ 38-33.3-112 — Unconscionable agreement or term of contract

Colorado § 38-33.3-112

• Jurisdiction: Colorado
• Title 38: Property -
• Art.: Colorado Common Interest Ownership Act

Text

(1) The court,
upon finding as a matter of law that a contract or contract clause relating to a
common interest community was unconscionable at the time the contract was
made, may refuse to enforce the contract, enforce the remainder of the contract
without the unconscionable clause, or limit the application of any unconscionable
clause in order to avoid an unconscionable result.

(2) Whenever it is claimed, or appears to the court, that a contract or any
contract clause relating to a common interest community is or may be
unconscionable, the parties, in order to aid the court in making the determination,
shall be afforded a reasonable opportunity to present evidence as to:

(a) The commercial setting of the negotiations;

(b) Whether the first party has knowingly taken advantage of the inability of
the second party reasonably to protect such second party's interests by reason of
physical or mental infirmity, illiteracy, or inability to understand the language of the
agreement or similar factors;

(c) The effect and purpose of the contract or clause; and

(d) If a sale, any gross disparity at the time of contracting between the
amount charged for the property and the value of that property measured by the
price at which similar property was readily obtainable in similar transactions. A
disparity between the contract price and the value of the property measured by the
price at which similar property was readily obtainable in similar transactions does
not, of itself, render the contract unconscionable.

Legislative History

Source: L. 91: Entire article added, p. 1709, � 1, effective July 1, 1992. L. 93: (2)(b) amended, p. 643, � 3, effective April 30.