Mike owns a house in a poor area of a large city.Mike is on disability and his total monthly income is $700.A sales representative visits his home,selling a water purification system.Mike buys and signs a contract that calls for monthly payments of $500 for the next 10 years.The water system is worth no more than $1000.Mike did not understand what he was signing and thought it was a permission slip allowing the salesman to conduct a free water test to determine the number of toxins in the water.How would a court most likely describe this contract?

Question

Quizplus · Accepted Answer

The contract is likely to be deemed unconscionable as it takes advantage of a vulnerable person and the terms are grossly unfair. The sales representative took advantage of Mike's lack of understanding and charged him significantly more than the water system was worth, leaving him with very little disposable income to cover his essential living expenses.

Mike Owns a House in a Poor Area of a Large