Lending money to a borrower at high rate of interest, when money market is tight, renders the agreement of loan:

Option A: Valid

Option B: Voidable

Option C: Voidable

Option D: Illegal

Correct Answer

Option: a

Explanation

In this scenario, the question asks whether lending money to a borrower at a high rate of interest when the money market is tight renders the agreement of loan valid, voidable, illegal, or void. The correct answer is option ‘A’, which means the agreement is valid.

Sample Mock Tests for Practice

THE CODE OF CRIMINAL PROCEDURE, 1973 (PAPER – 01 Q. NO. 1 TO 40)

THE INDIAN CONTRACT ACT, 1872 (PAPER – 10 Q. NO. 316 TO 350)

THE CODE OF CIVIL PROCEDURE, 1908 (PAPER – 13 Q. NO. 481 TO 520)

THE INDIAN CONTRACT ACT, 1872 (PAPER – 08 Q. NO. 246 TO 280)

AIBE-XVI-2021-II (BCI-OCT-2021-SET-A) (ALL INDIA BAR EXAM 2021-II)

UTTARAKHAND LOWER JUDICIAL SERVICES 2002

THE CODE OF CRIMINAL PROCEDURE, 1973 (PAPER – 09 Q. NO. 321 TO 360)

SAMPLE PAPER 01

HIMACHAL PARDESH LOWER JUDICIAL SERVICES 2019

THE HINDU MARRIAGE ACT, 1955 (PAPER -3 Q. NO. 51 TO 75)

AIBE-XIII-2018-II (BCI-DEC-2018-SET-A) (ALL INDIA BAR EXAM 2018-II)

THE MADHYA PRADESH ACCOMODATION CONTROL ACT, 1961 (PAPER 01 Q. NO. 1 TO 30)

THE CONSTITUTION OF INDIA, 1949 (PAPER – 04 Q. NO. 106 TO 140)

THE CONSTITUTION OF INDIA, 1949 (PAPER – 14 Q. NO. 456 TO 490)

KERALA LOWER JUDICIAL SERVICES 2011

THE JUVENILE JUSTICE (CARE AND PROTECTION OF CHILDREN) ACT, 2000 (PAPER 01 Q. NO. 1 TO 13)

THE COMMERCIAL COURTS ACT, 2015 (PAPER 01 Q. NO. 1 TO 12)

THE CODE OF CIVIL PROCEDURE, 1908 (PAPER – 03 Q. NO. 81 TO 120)

THE CODE OF CIVIL PROCEDURE, 1908 (PAPER – 02 Q. NO. 41 TO 80)

THE HINDU SUCCESSION ACT, 1956 (PAPER 02 Q. NO. 36 TO 65)

THE SPECIFIC RELIEF ACT, 1963 (PAPER – 04 Q. NO. 106 TO 140)

THE HINDU SUCCESSION ACT, 1956 (PAPER 01 Q. NO. 1 TO 35)

THE INDIAN EVIDENCE ACT, 1872 (PAPER – 17 Q. NO. 641 TO 680)

THE CODE OF CIVIL PROCEDURE, 1908 (PAPER – 12 Q. NO. 441 TO 480)

DELHI LOWER JUDICIARY 2011

HIMACHAL PARDESH LOWER JUDICIAL SERVICES 2016-1

THE TRANSFER OF PROPERTY ACT, 1882 (PAPER 02 Q.NO. 41 TO 80)

THE CONSTITUTION OF INDIA, 1949 (PAPER – 15 Q. NO. 491 TO 525)

THE HIMACHAL PRADESH COURTS ACT, 1976 (PAPER 01 Q. NO. 1 TO 23)

GUJRAT LOWER JUDICIAL SERVICES 2019(1) & (2)

AILET – National Law University Delhi Entrance Test (NLU 2014)

THE CODE OF CIVIL PROCEDURE, 1908 (PAPER – 01 Q. NO. 1 TO 40)

CLAT 2021

THE NEGOTIABLE INSTRUMENTS ACT, 1881 (PAPER 04 Q. NO. 121 TO 135)

THE INDIAN CONTRACT ACT, 1872 (PAPER – 07 Q. NO. 211 TO 245)

THE COMPANIES ACT, 1956 (PAPER 01 Q. NO. 1 TO 19)