Bastasch v. Hansen

Defendants appeal the trial court’s grant of summary judgment to plaintiff for specific performance of a loan agreement and option to purchase defendants’ real property. Defendants argue that the agreement is unenforceable — and, therefore, summary judgment was improper — because it violates Oregon’s usury laws, is unconscionable, and constitutes an unlawful penalty for breach of contract. As explained below, we conclude that the trial court erred in determining that the loan agreement was exempt from the relevant usury statutes; 1 we further conclude that, if usurious, the option agreement…