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

Section 16 illustration (d) states that a loan at an unusually high interest rate during a tight money market is a transaction in the ordinary course of business and is not,…

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

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Correct answer A

Section 16 illustration (d) states that a loan at an unusually high interest rate during a tight money market is a transaction in the ordinary course of business and is not, on those facts alone, induced by undue influence. High price alone does not establish domination of will; other illegality or proven statutory grounds can change the result.

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