The parties in a contract of loan of money agreed that the yearly interest rate is...

 

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The parties in a contract of loan of money agreed that the yearly interest rate is 12% and it can be increased if there is a law that would increase the interest rates. Suppose Luzfear Morningstar, the lender, would increase by 5 percent the interest to be paid off by Chloe Decker, the borrower, without a law authorizing such increase, would Luzfear Morningstar's action be just and valid? a. Yes or No. 2 points. b. Explain your answer, 5 points c. Suppose the interest rate was increased, will it violate the rights of parties to freely enter into a contract? 5 points The parties in a contract of loan of money agreed that the yearly interest rate is 12% and it can be increased if there is a law that would increase the interest rates. Suppose Luzfear Morningstar, the lender, would increase by 5 percent the interest to be paid off by Chloe Decker, the borrower, without a law authorizing such increase, would Luzfear Morningstar's action be just and valid? a. Yes or No. 2 points. b. Explain your answer, 5 points c. Suppose the interest rate was increased, will it violate the rights of parties to freely enter into a contract? 5 points