Horace Borrowed $100 000 from Blossom

question 78

Multiple Choice

Horace borrowed $100 000 from Blossom.As security for repayment of that loan,he created a mortgage over a piece of land called Blackacre.Horace has repaid part of the loan,but still owes $40 000 to Blossom.He is unable to repay the outstanding amount or make the next mortgage payment.Which of the following statements is TRUE?

• A)Under normal circumstances,Blossom has the right to take possession of Blackacre,but only if the land is located in a land titles system jurisdiction.
• B)Because the parties have both a loan contract and a mortgage,Blossom has an absolute right to sue Horace personally for $40 000,regardless of the province or territory in which Blackacre is located.
• C)If Blossom exercises a right to take possession of Blackacre,she cannot later use the remedy of foreclosure.
• D)If Blossom exercises a right to take possession of Blackacre,Horace's equity of redemption will necessarily be terminated.
• E)If the mortgage contract contains an acceleration clause,then Horace may be liable to immediately pay $40 000,even if the parties originally expected that he would pay half of that amount next year.

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Definitions:

Constant-Cost Industry

An industry in which the entry and exit of firms have no effect on the prices firms in the industry must pay for resources and thus no effect on production costs.

Long-Run Economic Profits

Profits earned by a firm when all resources are adjusted to their long-term optimal level, indicating the firm is in equilibrium and cannot earn higher profits by altering production.

Free Entry And Exit

A situation in a market where firms can enter and leave the industry without facing significant barriers or costs, promoting competition.

Industry

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