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Question
In Discover Bank v. Owens, Owens received a Discover credit card with a limit of $1,900 and charged $1,460. The credit card agreement allowed Discover to add fees and increase her interest rate when Owens paid her bill late or did not pay in full. Owens became disabled and experienced severe financial difficulty. She stopped using the card and made regular payments but continued to accrue fees. She eventually paid $3,492 towards her original debt but still owed Discover $5,564 when Discover brought a collection suit against her. The court held that in this situation:A.Owens owed $5,564 because she agreed to the terms of the credit card agreement when she used the card the first time.
B.Owens owed $5,564 because Discover did not have a duty to mitigate their damages over the six years.
C.Owens did not owe the $5,564 because her disability prevented her from having the financial means to pay the money.
D.Owens did not owe the $5,564 because the terms of the agreement were manifestly unconscionable in these circumstances.
Answer
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Related questions
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B.Mobil was able to get out of the contract for the $156 million lease because the new law passed at the last minute changed the terms of the contract, barring certain types of oil exploration, frustrating Mobil's contractual purpose.
C.Mobil could not claim an anticipatory repudiation because even though as new law had been passed, they had not yet filed their oil excavation plan so they could not know whether they were facing a problem.
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