Question

57. Asher purchases real property and receives a warranty deed from the seller. Asher chooses not to purchase title insurance. As it turns out, title is defective so Asher sues the seller. What is the likely outcome?

1. Asher loses because he could have purchased title insurance.
2. Asher loses because he assumed the risk of a title defect.
3. Asher wins under the terms of the deed.

58. In 2016, Miranda borrowed $10,000 from Mollie but never repaid it. Two years after the statute of limitations had expired, Miranda repeatedly promises to repay the loan. In fact, at Mollie’s birthday party, when making a toast to Mollie, Miranda declares her intention to pay it back. Martha writes Miranda’s promise on a piece of paper that Mollie signs. Miranda is obligated or not obligated to repay Mollie because?

1. Obligated to repay Mollie because there is a writing signed by Miranda.
2. Obligated to repay Mollie because she repeated stated she would.
3. Not obligated to repay Mollie because there is no consideration.

Answer 1

A. Asher loses because he could have purchased the title insurance

the title insurance protects the buyer from all the defects that he faces in the future due to the seller, in that case, the title insurance works as the safeguard to the buyer so Asher should have bought the title insurance and should not have rejected it.

A. obligated to repay Mollier because there is writing signed by Miranda.

This writing works as a promissory note when the loan is given to any friend or family member. If should be signed by that person who has taken the loan amount. As per the negotiable instrument act, 1881 it is accepted by the court as evidence in case of a dispute. It is a legitimate legal document.