Question
When the Prestons took out a variable mortgage with the First Bank of Marietta, their interest rate was 9 percent. The agreement allowed First Bank
When the Prestons took out a variable mortgage with the First Bank of Marietta, their interest rate was 9 percent. The agreement allowed First Bank to raise or lower the interest rate at any time, provided that the Prestons received 30 days notice. When the bank raised the interest rate to 11 percent, the Prestons refused to pay, arguing that the agreement was unenforceable, because it set no limit on what interest rate they might be forced to pay. Were the Prestons correct? Explain. [See: Preston v. First Bank of Marietta, 473 N.E.2d 1210 (OH).]
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started