Ted Nix Purchased Two Acres of Land from Sally Pine

question 7

Multiple Choice

Ted Nix purchased two acres of land from Sally Pine.Nix paid 15 percent at the closing and gave his note for the balance secured by a 30-year mortgage.Five years later,Nix found it increasingly difficult to make payments on the note and finally defaulted.Pine threatened to accelerate the loan and foreclose if Nix continued in default.Pine told Nix either to get the money or obtain an acceptable third party to assume the obligation.Nix offered the land to Quick Co.for $4,000 less than the equity Nix had in the property.This was acceptable to Pine and at the closing,Quick paid the arrearage,executed a new mortgage and note,and had title transferred to its name.Pine surrendered Nix's note and mortgage to him.The transaction in question is a(n) :

• A)third-party beneficiary contract.
• B)novation.
• C)purchase of land subject to a mortgage.
• D)assignment and delegation.

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Definitions:

Modeling

A method used in psychology to learn by observing and imitating others' behaviors, attitudes, or emotional expressions.

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired together; an unconditioned stimulus and a conditioned stimulus.

Fear Response

The physiological and psychological reaction to perceived threats, activating the body's fight or flight response.

Conditioned Stimulus

A stimulus that initially has no effect but, after being paired with an unconditioned stimulus, eventually elicits a conditioned response.