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?
A) The contract is fully enforceable as written.
B) The contract is unenforceable because it is illusory.
C) The contract is unenforceable because it is unconscionable.
D) The contract is unenforceable because it is exculpatory.


C

Business

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