What is the maximum amount of interest that may be charged in a contract called?

The maximum amount of interest that may be charged in a contract is referred to as the contract rate. This term signifies the specific percentage of interest that parties have agreed upon in a contractual arrangement, and it represents the cap that cannot be exceeded under the legal guidelines governing contracts within a jurisdiction.

Understanding the maximum interest rate is crucial in various contracts, especially in financial agreements, as it helps prevent usury and protects consumers from excessive charges. The contract rate establishes clear expectations for both parties involved in the agreement, ensuring that the terms are understood and legally enforceable.

The other terms mentioned do not pertain to the maximum interest rating. "Voidable," for instance, relates to contracts that can be invalidated under certain conditions, while "fiduciary" pertains to a relationship involving trust obligations. "Probate" describes the legal process concerning the administration of a deceased person's estate. These terms do not define the interest rates applicable in contracts.