Multiple choice

Principle: An unconscionable transaction is a transaction in which a person in a dominant position makes unreasonable use of his position or power over the other party and enters into a contract, which is so much to his advantage that it “shocks the conscience” or makes an exorbitant profit of the other’s distress, without transgressing the boundaries of law.

Which of the following is not a suitable illustration of “unconscionable transaction”?

  1. During the floods in Uttarakhand, a vendor sells potable water for Rs. 100/150 ml.

  2. A money lender contracts to charge 60% interest to a farmer as a loan to have a tube well dug to irrigate his fields.

  3. A doctor demanded five times the normal fees to attend a patient who has severe fever.

  4. The army appropriates the houses of residents living near the border in anticipation of a major cease fire violation by the neighbouring country.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Option 1: This indeed is an illustration of unconscionable transaction. Option 2: This is a suitable illustration as 60% interest is too high.  Option 3: This is a suitable illustration as a doctor is not expected of such conduct.  Option 4: This was the need of the hour. Hence, the army cannot be blamed for any unconscionable conduct. It was basically for the good of the people living near the border.

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