Full access allows:
- Solve all tests online without limits;
- Remove all advertisements on website;
- Adding questions to favorite list;
- Save learning progress;
- Save results of practice exams;
- Watching all wrong answered questions.
45. Is the court likely to grant the borrower's motion for summary judgment?
Under state law, the usurious character of the interest would entitle the borrower to repay at a reduced rate of interest, and duress is a complete defense to a breach of contract action. Both the lender and the borrower filed cross-motions for summary judgment. The borrower's summary judgment motion, which sought a judgment of no liability to the lender, was supported by her affidavit, which sufficiently demonstrated that she signed the contract with the lender under duress and that the contract was, in fact, usurious.
A lender sued her borrower in federal court for breach of a promise to repay, with interest, the $80,000 that she had borrowed. The court had diversity jurisdiction. The borrower admitted that she received an $80,000 loan from the lender but claimed that the loan contract was illegal because the rate of interest provided for in the parties' contract was usurious and that she had agreed to pay it only under duress.
Comments (0)
There are no comments at the moment. If you found an error or think question is incorrect, tell everyone about it
Only signed in users can write comments
Signin
B is incorrect. Under state law, the usurious character of the interest would entitle the borrower only to repay at a reduced rate of interest, not to be released from liability altogether.
C is incorrect. Federal Rule of Civil Procedure (FRCP) 56 does permit a defendant to obtain a judgment in its favor on the basis of affirmative defenses.
D is incorrect. The fact that there are cross-motions for summary judgment does not necessarily establish that there are genuine issues of material fact. The borrower presented an unrefuted affidavit in support of her motion, so the court may grant the borrower's motion because of state law providing that duress is a complete defense to a breach of contract action.