Question

Bambi is buying a property on an installment sales contract. Due to her financial interest in the property, she retains equitable title. What does the seller retain

Answer 1

Answer:

Legal title

Explanation:

A contract can be defined as an agreement between two or more parties (group of people) which gives rise to a mutual legal obligation or enforceable by law.

There are different types of contract in business and these includes: fixed-price contract, cost-plus contract, bilateral contract, implies contract, unilateral contract, adhesion contract, unconscionable contract, option contract, express contract, etc.

Mutual assent is a legal term which represents an agreement by both parties to a contract. When two parties to a contract both have an understanding of the parameters, terms and conditions surrounding a contract, it ultimately implies that they are in agreement and this is generally referred to as mutual assent

In this scenario, Bambi purchased a property using an installment sales contract.

An equitable title can be defined as the right of an individual to use and enjoy an asset (property) due to his or her financial interest in the asset.

On the other hand, a legal title can be defined as the actual (absolute) ownership of a property that is recognized and enforceable in a court of competent jurisdiction.

Hence, Bambi would retain an equitable title from the purchase of the property due to her financial interest in this property while the owner of the property (seller) retains a legal title.