For problems 19 to 21, assume that the legal rate of interest in New York is 16%
19?For each of the following transactions, explain whether the transaction is usurious and how much, if anything, the lender may recover
(a)?Jack lends Bobby $1,000 and Bobby signs a promissory note for $1,160, payable in one year
(b)?Jack lends Bobby $1,000 and Bobby signs a promissory note for $1,160, payable in three months
(c)?Barry agrees to sell Lisa his valuable oil painting for $50,000 and to buy it back from her in three months for $75,000
20?Devin had been down on his luck for years Unable to pay his bills, Devin approached his best friend Craig for a loan On January 1, 2009, Craig and Devin agreed in a signed writing that Craig would lend Devin $10,000 The terms of the loan agreement called for Devin to repay the loan, along with $3,250 in interest, on January 1, 2010
On December 31, 2009, Devin called Craig and advised that he would not repay the above loan
(a)?In an action by Craig against Devin for money damages, judgment for whom?
(b)?In an action by Craig against Devin for equitable relief, judgment for whom?
21?Caleb and Dexter entered into a loan agreement on February 1 The agreement called for Caleb to lend Dexter $5,000, and in return Dexter was to pay off the loan in monthly installments of $900 for a period of six (6) months In addition, the agreement also called for Dexter to pay Caleb a monthly $300 service fee on the loan In fact, this fee did not relate to any services performed by Caleb either in connection with the loan, or in connection with the processing of Dexter’s loan repayment checks
After making the first two monthly installment payments, Dexter made no further payments to Caleb
In an action by Caleb against Dexter, judgment for whom?