Neon enters into a contract with Stogey Company to purchase a washer and dryer. She doesn't understand the financing terms, which include a high interest rate and steep late-payment penalties, but signs the agreement anyway because she needs the appliances. The financing terms are very unfavorable to Neon, and she is unable to make all of her payments when they are due. Stogey sues. This is an example of:
a. a void agreement because neither Neon nor Stogey had the legal authority to make the contract.
b. a voidable contract because Stogey Company has committed fraud.
c. a valid contract, even though the terms are unfavorable to Neon.
d. an unenforceable agreement that violates some rule of law.
Answer: C
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