What Happens When a Buyer with a Voidable Title Sells

question 26

Multiple Choice

What happens when a buyer with a voidable title sells the goods to a third-party purchaser who makes a good-faith purchase for value?

• A) The purchaser gets good title.
• B) The purchaser gets voidable title.
• C) The purchaser gets void title.
• D) The purchaser gets reclaimable title.
• E) The purchaser gets good-faith title.

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Definitions:

Opinion Letter

A letter expressing a legal assessment or judgment from a lawyer to his or her client, often concerning the legality and details of a transaction.

Completed Audit

A comprehensive examination and verification of an organization's financial and operational systems, which has been fully carried out.

Substantially Performed

A legal principle recognizing that a contract has been completed enough to warrant fulfillment despite minor deviations.

Contract Breach

An instance in which one party fails to fulfill its obligations under a contract, whether partially or entirely.