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Massachusetts Service Agreement

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Massachusetts at a glance: Usury Cap: 20% per year (M.G.L. Ch. 271 § 49) · Governing Law: Massachusetts General Laws

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Overview

Service Agreements in Massachusetts

Massachusetts service agreements are interpreted under common law contract rules and Chapter 106 of the General Laws (UCC). Late interest fees must not exceed the state usury threshold of 20% per year (M.G.L. Ch. 271 § 49).
Key Facts

Massachusetts Service Agreement — Quick Reference

RequirementMassachusetts Rule
Usury Cap20% per year (M.G.L. Ch. 271 § 49)
Governing LawMassachusetts General Laws
Legal Requirements

Massachusetts Legal Requirements

  • Interest rates above 20% are considered criminal usury and are void.
Governing Laws

Massachusetts Governing Laws

M.G.L. Ch. 271 § 49
Criminal Usury
Defines 20% interest cap limits on all contracts.

Read the full text of these laws at Cornell Law School's Massachusetts legal resources or your state legislature's official website.

Questions & Answers

Massachusetts Service Agreement — Frequently Asked Questions

Does Massachusetts require specific notice to charge late fees?

No, but the interest rate must be clearly disclosed in the written agreement.