Michael, who is a new immigrant in Canada, borrowed money to a lending company, AB Finance Ltd. In their conversation, Michael told the agent of the lending company that he is a new immigrant, and he is in dire need of money to support his family back home. The loan agreement stipulates that the annual interest rate is sixty-five (65%) and the term of the contract is one year. Is the annual interest rate enforceable or unenforceable? In the absence of stipulation, the applicable interest rate under the law applies. Please state your reasons

Michael, who is a new immigrant in Canada, borrowed money to a lending company, AB Finance Ltd. In their conversation, Michael told the agent of the lending company that he is a new immigrant, and he is in dire need of money to support his family back home. The loan agreement stipulates that the annual interest rate is sixty-five (65%) and the term of the contract is one year. Is the annual interest rate enforceable or unenforceable? In the absence of stipulation, the applicable interest rate under the law applies. Please state your reasons

Similar questions

BUSINESS LAW BUSS2422 Akram posted the offer letter on 2 October 2020 to Salam to sell his Honda City for RM50 000 to be accepted by 10 October 2020. On 4 October 2020 Akram posted another letter to revoke his proposal. The revocation letter reached Salam on 9 October 2020. On 8 October 2020, Salam posted his acceptance letter accepting the proposal. Based on the facts above: (a) Advise Salam as to his legal rights against Akram in relation to the agreement. (b) Explain if your answer would be different if Salam posted the letter of acceptance after the letter of revocation reached him. Support your answer with relevant statutory provisions of the Contracts Act 1950 and decided cases. Format: Times New Roman 12 1% spacing Front cover - Standard Format Number of pages - Minimum 3 pages, maximum 5 pages
1.A borrowed P30,000.00 from B to be paid on September 10, 2016, in exchange for the loan, A surrendered his Iphone7 to B as security. On September 11, 2016, B demanded that A pay the P30,000.00 loan. Since A do not have enough money, he just told B that B can just have his Iphone/ as payment for his loan to which B agreed. Is the contract extinguished? Explain . 2. A, B, C and D are the solidary debtors of X for 240,000. X released D from the payment of his share of P10,000. When the obligation became due and demandable, C turned out to be insolvent. Considering the said incidents, what are the liabilitites of A, B, C, and D? 3. Aida, Lorna and Fe borrowed money from Juan, Pedro and Mario P3,000.00. Aida's obligation is due today, September 5, 2019, Lorna is a minor and Fe's obligation is due on September 10, 2019. Can Pedro alone proceed against Lorna alone for the payment of the entire P3,000.00? Explain . 4.Explain and Give an example of the following modes of extinguishing an…
Select the statement that describes how bilateral and unilateral contracts are alike and different. Both contract types involve two parties. But in bilateral contracts, both parties make a promise; in unilateral contracts, only one party does. Both are valid contract classifications, but only bilateral contracts involve two parties. Both are valid contract classifications, but only unilateral contracts involve two parties. Both contract classifications involve two promises, but only bilateral contracts involve two parties.
John goes to a bar. Harry starts to talk to him about a car he has for sale. John tells him he wishes he could buy the car but does not have that much cash. Harry tells John he can make payments over the next year. Harry writes on a napkin John shall pay me $100.00 per month for 12 months starting December 1, 2018. They both sign and date the napkin. Discuss whether this is a negotiable instrument. Defend your position. Ensure you discuss each element of negotiability.
Joseph and Mai each bought shares of Apple stock at $200 per share. About a week later, Joseph called his stockbroker and told him that if Apple was trading below $195, he wanted to sell. The broker was very busy, so he didn’t check but Apple was trading at $194 per share. He told Joseph that it was not below $195, so Joseph did not sell the stock. Mai also called her stockbroker that day also and told him that if Apple was trading below $195, she wanted to sell. Once again, the broker was very busy, so he didn’t check but Apple was trading at $194 per share. He told Mai that it was not below $195. However, Mai saw the price on her computer and knew it was $94. However, Mai did not sell either. Apple dropped to $180 per share by the end of the day and they both sold suffering a large loss. They both sue the brokers. What are the probable outcomes of the suits?
Xavier purchased a condominium unit at Atmos Towers in January 2018 for P 3,000,000. In the agreement, Xavier will pay a 20% downpayment and thereafter pay a monthly installment fee of P 65,000 for 60 months. In June 2020, or after paying 29 monthly installments, Xavier failed to pay his obligations because his fast-food business went bankrupt due to the pandemic. (a) What are the rights of Xavier under the Maceda Law? (b) In the above case, how much is the cash surrender value that must be returned to Xavier in case he fails to pay after the grace period?
Bill offers to sell Mary his computer for $500. Mary counters with an offer of $400 Bill rejects this offer. Mary tells Bill: "OK, I'll buy the computer for $500." Bill tells Mary: "I've decided not to sell the computer after all." Bill is in breach of contract because Mary made a valid offer. True False
Gemma promises a local hardware store that she will pay for a lawn mower that her brother is purchasing on credit if the brother fails to pay the debt. Must this promise be in writing to be enforceable? Why or why not?
Fiona, Celine and Donna have recently commenced a business together making custard pies using the name 'FCD's Custard Pies' as their trading name. They also sell coffee and soft drinks. Only Donna has put capital into the business, and no formal agreement exists between them. However, on many occasions Fiona has purchased stock for the business from their various suppliers by using her own money, and she has also set up an account with the suppliers in the name of 'FCD's Custard Pies'. Celine also has often placed orders on behalf of the business with their various suppliers for stock. 00:0 At their next meeting Fiona suggests selling alcoholic beverages. Donna likes the idea, but Celine does not. Celine says that such a change would require renovation of the shop, and also obtaining a licence to sell alcohol. This requires an application to the relevant government authority, which may reject the application. After giving it lots of thought, Donna decides to leave the business in two…
What is the main difference between contracts discharged due to operation of law and contracts discharged due to acts of the parties? Discharge due to acts of the parties never requires court intervention, whereas discharge due to operation of law always does. Discharge due to operation of law reflects at least one party's intent, whereas discharge due to acts of the parties doesn't necessarily reflect either party's intent. Discharge due to acts of the parties is legally binding, whereas discharge due to operation of law is not. Discharge due to operation of law doesn't necessarily reflect either party's intent, whereas discharge due to acts of the parties reflects at least one party's intent. 11 XIR Submit > 17
Describe Express and implied contracts. What does it mean when a contract is called void and voidable?
American Business Financial Services, Inc. (ABFI), a Pennsylvania firm, sells and services loans to businesses and consumers. First Union National Bank, with its principal place of business in North Carolina, provides banking services. Alan Boyer, an employee of First Union, lives in North Carolina and has never been to Pennsylvania. In the course of his employment, Boyer learned that the bank was going to extend a $150 million line of credit to ABFI. Boyer then attempted to manipulate the stock price of ABFI for personal gain by sending disparaging e-mails to ABFI’s independent auditors in Pennsylvania. Boyer also posted negative statements about ABFI and its management on a Yahoo bulletin board. ABFI filed a suit in a Pennsylvania state court against Boyer, First Union, and others, alleging wrongful interference with a contractual relationship, among other things. Boyer filed a motion to dismiss the complaint for lack of personal jurisdiction. Could the court exercise jurisdiction…