They sign a contract, which states that Matt would have to pay $1,500 as interest in one year to pay off the loan. Later, Matt gets to know about the state usury limit and sues Tony. What is the nature of the contract between Matt and Tony?
A) It is illegal as it violates gambling statutes.
B) It is legal as both parties were competent when the contract was signed.
C) The contract is void as it violates usury laws.
D) The contract is void as it is a contract to commit a crime.
ANSWER:
C