Multiple Choice
Brice owns a parcel of land that is encumbered by a mortgage held by the First National Bank.Brice agrees to sell the land to Paul for $50,000.Brice and Paul together go to the First National Bank to discuss the sale and purchase with the banker.Brice,Paul,and the banker sign an agreement stating that Paul will assume the mortgage and that Brice will be discharged from all further liability on the mortgage.In this case:
A) the bank is a third party donee beneficiary.
B) the bank can collect from Brice if Paul defaults.
C) Brice is a third party beneficiary of the agreement between Paul and the bank.
D) the agreement among the three is a novation.
Correct Answer:
Verified
Correct Answer:
Verified
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