Multiple choice

Mortgage, 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 is known as

  1. simple mortgage

  2. mortgage by conditional sale

  3. usufructuary mortgage

  4. anomalous mortgage

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B Correct answer
Explanation

Mortgage by conditional sale is 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 mortgage by conditional sale and the mortgagee becomes a mortgagee by conditional sale.

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