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

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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

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