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A fraudulently informs B that his house is free from encumbrances. B thereupon, buys the house. The house is subject to a mortgage. What are the rights of B?
- a)The contract is voidable at the option of B
- b)He may avoid the contract and get back his money
- c)Both (a) and (b)
- d)Either (a) or (b)
Correct answer is option 'C'. Can you explain this answer?
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A fraudulently informs B that his house is free from encumbrances. B t...
Rights of B in a Fraudulent Transaction
When A fraudulently informs B that his house is free from encumbrances, and B buys the house, the house is subject to a mortgage. In such a case, the rights of B are as follows:
1. The Contract is Voidable at the Option of B
B has the right to declare the contract voidable at his option. This means that B can choose to either continue with the contract or avoid it, depending on his choice. If B chooses to continue with the contract, he must accept the encumbrances on the house and fulfill his obligations as a buyer.
2. He May Avoid the Contract and Get Back His Money
B also has the right to avoid the contract and get back his money. This means that B can choose to cancel the contract and ask for a refund of the amount paid by him to A. In such a case, A must return the entire amount to B, along with any interest or other charges that may have been paid by B.
3. Both (a) and (b)
B has the right to either declare the contract voidable or avoid the contract and get back his money. He can choose either option based on his preference and the circumstances of the case. Therefore, option (c) is the correct answer.
In conclusion, when A fraudulently informs B that his house is free from encumbrances, and B buys the house that is subject to a mortgage, B has the right to either declare the contract voidable or avoid it and get back his money.
When A fraudulently informs B that his house is free from encumbrances, and B buys the house, the house is subject to a mortgage. In such a case, the rights of B are as follows:
1. The Contract is Voidable at the Option of B
B has the right to declare the contract voidable at his option. This means that B can choose to either continue with the contract or avoid it, depending on his choice. If B chooses to continue with the contract, he must accept the encumbrances on the house and fulfill his obligations as a buyer.
2. He May Avoid the Contract and Get Back His Money
B also has the right to avoid the contract and get back his money. This means that B can choose to cancel the contract and ask for a refund of the amount paid by him to A. In such a case, A must return the entire amount to B, along with any interest or other charges that may have been paid by B.
3. Both (a) and (b)
B has the right to either declare the contract voidable or avoid the contract and get back his money. He can choose either option based on his preference and the circumstances of the case. Therefore, option (c) is the correct answer.
In conclusion, when A fraudulently informs B that his house is free from encumbrances, and B buys the house that is subject to a mortgage, B has the right to either declare the contract voidable or avoid it and get back his money.
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A fraudulently informs B that his house is free from encumbrances. B thereupon, buys the house. The house is subject to a mortgage. What are the rights of B?a)The contract is voidable at the option of Bb)He may avoid the contract and get back his moneyc)Both(a) and (b)d)Either(a) or (b)Correct answer is option 'C'. Can you explain this answer?
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A fraudulently informs B that his house is free from encumbrances. B thereupon, buys the house. The house is subject to a mortgage. What are the rights of B?a)The contract is voidable at the option of Bb)He may avoid the contract and get back his moneyc)Both(a) and (b)d)Either(a) or (b)Correct answer is option 'C'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A fraudulently informs B that his house is free from encumbrances. B thereupon, buys the house. The house is subject to a mortgage. What are the rights of B?a)The contract is voidable at the option of Bb)He may avoid the contract and get back his moneyc)Both(a) and (b)d)Either(a) or (b)Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A fraudulently informs B that his house is free from encumbrances. B thereupon, buys the house. The house is subject to a mortgage. What are the rights of B?a)The contract is voidable at the option of Bb)He may avoid the contract and get back his moneyc)Both(a) and (b)d)Either(a) or (b)Correct answer is option 'C'. Can you explain this answer?.
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