wilder, a regular gambler at the santa anita racetrack, loses big when the horse he wagers on fails to win the race. wilder loses $20,000 on the bet and becomes insolvent (bankrupt). he then decides to go to the bar to drink a number of shots, which make him intoxicated. since wilder has been such a steady source of business for the racetrack, santa anita approaches wilder at the bar and decides to offer him a $30,000 line of credit to continue gambling, which he signs that day. the contract has a forum and choice of law provision, which states that all disputes must be litigated in california superior court and that california law should exclusively apply. on the very next race, wilder proceeds to lose the entire $30,000 he received under the contract.
One month later, Santa Anita attempts to collect this additional
$30,000
loss by filing a lawsuit for breach of contract against Wilder, claiming that Wilder has no other way of paying the racetrack. Wilder argues that he should not be forced to pay the racetrack for his losses and that he is vulnerable to a company with much greater bargaining power. Which of the following is the most likely outcome in this case? The contract Wilder signed is voidable at his discretion because he gave nothing in consideration in exchange for the
$30,000
, so the court can order that the agreement should be rescinded. The contract Wilder signed is void and unenforceable because it violates a statute and the choice of law provision prevents Santa Anita from collecting the
$30,000
in this case. The contract Wilder signed is enforceable, and he owes the racetrack
$30,000
because he agreed in writingit. the deal. However, since he is bankrupt, the court will only order that he has to pay back a fraction of the debt in restitution damages. The contract Wilder signed is unenforceable due to public policy, as it would be unfair for Santa Anita to take advantage of him while he was gambling and too intoxicated to understand the terms of the deal.