The Distinction Between Legal Title and Equitable Title Is an Important

question 16

Multiple Choice

The distinction between legal title and equitable title is an important concept in the contract for sale of real estate. When the buyer obtains equitable title, the seller can no longer sell the property to someone else, even though the legal title has not officially passed on. In the contract for sale process, the creation of equitable title occurs when:

• A) The contract for sale is written.
• B) The contract for sale is signed.
• C) The contract terms are orally agreed upon.
• D) Each party is deemed legally competent.

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Definitions:

Fixed Manufacturing Overhead

Costs associated with manufacturing that do not vary with the level of production, such as rent, salaries, and insurance.

Variable Cost

Costs that change in proportion to the level of production or sales volume.

Outside Supplier

A third-party entity that provides goods or services to a company, typically not affiliated with the company's internal supply chain.

Fixed Manufacturing Overhead

The portion of manufacturing overhead costs that remains constant regardless of the level of production or output volume.