Rehab Center signs an agreement with Savers Bank to borrow $40,000 at 20 percent interest. Later, the state legislature passes a law lowering the maximum permissible rate of interest to 15 percent. Rehab's best argument for avoiding payment to Savers is that

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The law has rendered performance of the contract illegal because the state has passed a law lowering the maximum permissible rate of interest to 15 percent, and the agreement between Rehab Center and Savers Bank was for a 20 percent interest rate. Therefore, the contract cannot be enforced as it violates the state law.

Rehab Center Signs an Agreement with Savers Bank to Borrow