Banks Can Never Deduct Interest in Advance on a Loan

question 56

True/False

Banks can never deduct interest in advance on a loan.

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Definitions:

Disaffirm

The legal act of denying or rejecting a contract or agreement, especially by a party who was not competent to enter it at the time of agreement.

Student Loan

A type of loan designed to help students pay for post-secondary education and the associated fees, such as tuition, books, and living expenses.

Quasi-Contract

An obligation imposed by law to prevent unjust enrichment, even though no actual contract exists between the parties involved.

Necessaries

Goods and services deemed essential for an individual's subsistence and welfare, especially in the context of legal responsibility and contracts.