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    Question

    When the mortgagor ostensibly sells the mortgaged

    property the transaction is?
    A Simple mortgage Correct Answer Incorrect Answer
    B Usufructuary mortgage Correct Answer Incorrect Answer
    C Mortgage by conditional sale Correct Answer Incorrect Answer
    D English mortgage. Correct Answer Incorrect Answer

    Solution

    As per S. 58 (c) Mortgage by conditional sale.—Where the mortgagor ostensibly sells the mortgaged property— on condition that on default of payment of the mortgage-money on a certain date the sale shall become absolute, or on condition that on such payment being made the sale shall become void, or  on condition that on such payment being made the buyer shall transfer the property to the seller, the transaction is called a mortgage by conditional sale and the mortgagee a mortgagee by conditional sale: [Provided that no such transaction shall be deemed to be a mortgage, unless the condition is embodied in the document which effects or purports to effect the sale.

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