Juan owns a house in a poor area of a large city.A salesman visits his home,selling aluminum siding.Juan buys and signs a contract,which calls for a price of $25,000 to be paid in monthly installments of $500 for 20 years.Juan only earns $700 per month.In addition,Juan's home is only worth about $35,000.The aluminum siding put on is worth no more than $1,500.Juan speaks and reads very little English and Juan thought he was signing a receipt for a free gift.Which of the following best describes this contract?

Question

Quizplus · Accepted Answer

This contract is unconscionable because it takes advantage of Juan's lack of understanding of the contract and his financial situation. It is highly unfavorable to Juan in terms of the amount he would have to pay and the value he would receive. As a result, the contract is likely to be deemed unenforceable by a court.

Juan Owns a House in a Poor Area of a Large