What Is the Difference Between a Chattel Mortgage and a Conditional

question 39

Multiple Choice

What is the difference between a chattel mortgage and a conditional sale contract?

• A) a conditional sale is a personal obligation of the buyer, whereas a chattel mortgage does not bind the chattel mortgagor personally
• B) in a conditional sale contract the security is the property sold, whereas a chattel mortgage can have as security any chattels
• C) a chattel mortgage must be registered to affect third parties, whereas a conditional sale agreement does not need to be registered to affect third parties
• D) if there is default under a conditional sale contract, the seller can seize the goods and sue the buyer for any deficiency, whereas under a chattel mortgage the chattel mortgagee can only seize the goods
• E) none of the above is correct