Lovett County Bank offers to lend money to Kino,the owner of Java Stop,at 15 percent interest.Before Kino accepts,a state statute is enacted prohibiting loans at rates greater than 12 percent.Kino and the bank have

Question

Quizplus · Accepted Answer

The state statute prohibits loans at rates greater than 12 percent, which means the agreement for a loan at 15 percent interest is no longer valid. Therefore, there is no valid contract between Kino and the bank.

Lovett County Bank Offers to Lend Money to Kino,the Owner