Question

Peter and Michelle are recent business school graduates with very few resources. They decided to start a business as partners. Michelle was a much better negotiator than Peter (because she had taken a MOOC called "Successful Negotiation"!). She persuaded Peter to sign a partnership agreement that was extremely unfair to him. He should be able to back out of the agreement because (select one):

Answer 1

Answer: The agreement is unconscionable because it is only favouring Michelle

Explanation:

Based on the information provided in the question, Peter should be able to back out of the agreement because in this case, the agreement is unconscionable. In this case, the agreement only favours Michelle and not both of them.

In this case, since the contract is unfair, it is said to be unconscionable and Peter may not enforce it.