Cengage Advantage Books: Business Law 9th Edition by Arnold Goldman ,William Sigismond

Exercise 13

Len purchased a factory from Marine Realty Bank. Len paid 20 percent at the closing and gave a note for the balance secured by a twenty-year mortgage. Five years later, Len defaulted. Marine Realty threatened to accelerate the loan and foreclose. Marine Realty told Len to make payment or obtain an acceptable third party to assume the obligation. Len offered the land to Billings, Inc. for $10,000 less than Len's equity in the property. This was acceptable to Marine Realty. At closing, Billings paid the arrearage, assumed the mortgage and note, and had title transferred to its name. Marine Realty released Len. The transaction in question is a(n):
a. purchase of land subject to a mortgage
b. assignment
c. delegation
d. novation