State Bank offers to lend money to Rodeo Promotions,Inc. ,at 15 percent interest.Before Rodeo accepts,a statute is enacted prohibiting loans at interest rates greater than 12 percent.Rodeo and the bank have

Question

Quizplus · Accepted Answer

The statute prohibiting loans at interest rates greater than 12 percent has invalidated the previous agreement between Rodeo Promotions, Inc. and the State Bank. Therefore, they have no contract for a loan.

State Bank Offers to Lend Money to Rodeo Promotions,Inc