Author Question: Proof of substantial impairment of the value of a contract to the buyer is required to justify ... (Read 107 times)

nramada · **on:** Jun 24, 2018

Proof of substantial impairment of the value of a contract to the buyer is required to justify revocation of acceptance.
Indicate whether the statement is true or false

Question 2

On May 1, 2010, Cynthia Hendrix bought her home and First Bank recorded its mortgage. On June 24, 2012, Cynthia sold her home to Stanton Gulbrandsen for 250,000. At that time, Cynthia's mortgage was 225,000. Stanton assumed Cynthia's mortgage and gave Second Bank a second mortgage for 225,000. Second Bank did not record its mortgage. On October 12, 2014, Stanton sold the home to Derek Bolger for 275,000. Bolger took the property subject to the previous mortgages and executed a 275,000 mortgage to Third Bank. Third Bank recorded its mortgage on October 18, 2014. Third Bank knew of the Second Bank mortgage. In a race state, which mortgage company has priority?
A)First Bank
B)Second Bank
C)Third Bank
D)Impossible to tell from facts given