Jack Enters into a Lease with Mary for a Term

question 33

Multiple Choice

Jack enters into a lease with Mary for a term of one year. After six months Mary grants a mortgage over the leased property to the Royal Bank of Canada. A month later Mary defaults under the mortgage. Which of the following is not true?

• A) Jack can continue to observes the terms of the lease.
• B) The Royal Bank of Canada may claim the reversion.
• C) The Royal Bank of Canada is bound by the lease and cannot obtain possession.
• D) The Royal Bank of Canada's title is subject to lease.
• E) The Royal Bank of Canada can evict Jack and sell the property.

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Definitions:

Growth Rate

The rate at which a company's earnings or revenues increase in a given time period, reflecting its ability to expand its business.

Annual Dividend

The total dividend that a company pays to its shareholders in a single fiscal year.

Zero Growth Stock

Zero growth stock is a type of stock for which the dividends are expected to remain the same, with no expected growth in payouts over time.

Required Rate

The minimum annual percentage return that an investor expects or requires from an investment, considering the risk involved.