Xavier Deeds to Peter, a Trustee, His Property in Form

question 5

Multiple Choice

Xavier deeds to Peter, a trustee, his property in form of security, for the loan, which is lent by Smith, the beneficiary of the trust. The nature of this transaction renders it as a deed of trust. Under these circumstances, if Xavier defaults to pay the loan, which of the following is the appropriate way in which Smith can recover his loan?

• A) By asking Xavier to enter into an action and sale contract
• B) By exercising the right of exoneration
• C) By exercising right of reimbursement
• D) By notifying Peter to sell the property

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Definitions:

Demand Schedule

A table or graph showing the quantity of a product or service demanded at various prices.

Imperfectly Competitive Firm

A business operating in a market where it has some control over the price of its product because competition is not completely intense.

Marginal Revenue

The additional revenue that a firm receives from selling one more unit of a product.

Barriers to Entry

Obstacles that deter or limit the ease with which newcomers can penetrate an industry or business field.