EAQE Property ordinances and first-hand sales question: Unconscionable Contracts Ordinance

EAA EAQEProperty ordinances and first-hand sales

An elderly consumer with limited English signs an agency's long service contract with a large 'cancellation fee', after being pressed to sign at once without explanation. Under the Unconscionable Contracts Ordinance, which factors may the court consider?

A Only whether the consumer signed the contract voluntarily
B Bargaining strength, understanding, pressure and alternatives
C Only whether the cancellation fee is below HK$10,000
D Only whether the agency is licensed

Show the answer and explanation

Answer: B. Bargaining strength, understanding, pressure and alternatives

Answer: Relative bargaining strength, ability to understand, undue pressure and availability of alternatives, among others. Why not the others: - Only signing: A signature does not exclude unconscionability. - Below HK$10,000: There is no monetary threshold of this kind in section 6. - Licensing: Licence status is not a section 6 factor. Rule: In deciding whether a consumer contract is unconscionable, the court may consider the parties' relative bargaining strength, whether conditions were not reasonably necessary to protect the stronger party's interests, whether the consumer could understand the documents, any undue influence, pressure or unfair tactics, and what the consumer could have obtained elsewhere. Source: Unconscionable Contracts Ordinance (Cap. 458), section 6; as at Oct 2026