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

Question

Quizplus · Accepted Answer

Once the statute prohibiting loans at interest rates greater than 12 percent is enacted, Todd and the bank no longer have a valid contract for a loan at 15 percent interest, as it is now illegal. Therefore, there is no contract for a loan between Todd and the bank.

First State Bank Offers to Lend Money to Todd at 15