Unconscionable contract Essay Example | Topics and Well Written Essays - 250 words

usurious contract - Essay ExampleIn the case at bar, Amy, who was a college student, was led to believe by the salesman that the home theater system, Alpo Model XL2, represents $3,000, when in truth and in fact, the actual standard cost of the theater system is only $1,000. The price given by the salesman was two times higher than the prevailing standard cash market price of the item bought by the buyer. Hence, the rent-to-own contract signed by Amy is considered unconscionable. below the law, Amy has the remedy to demand the return of the excess $2,000 since the contract price is unconscionable, excessive and unfair on her part. Here, the salesman acted in bad faith at the time of the signing of the rent-to-own contract. Therefore, in order to cure the damage caused to the buyer, Amy provide go to court and have the contract declared as unconscionable and oppressive, since there was a misdemeanour on the part of the salesman to fulfill his obligation in good faith in accordanc e with their contract.