Pete Purchases Property from Marie, Who Purchased It from Doris

question 12

Multiple Choice

Pete purchases property from Marie, who purchased it from Doris, a minor.Pete obtains title insurance.Doris, shortly after reaching
The age of majority, wants to reclaim her property.Which of the
Following best describes the result?

• A)Doris is entitled to the property and Pete may recover from the insurance company.
• B)Doris is entitled to the property and Pete may not recover from the insurance company.
• C)Doris is not entitled to the property because Marie sold it to Pete, but Doris is entitled to damages from Marie.
• D)None of the above.

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Definitions:

Prepaid Insurance

An asset account that represents insurance premiums paid in advance, which are expensed over the period the insurance coverage pertains to.

Accounts Receivable

Funds that customers owe to a company for products or services provided but not yet compensated for.

Accounts Payable

Money owed by a company to its creditors for goods or services that have been received but not yet paid for.

Cash

Money in the form of coins or banknotes, especially that which is available for transactions and accounting purposes.