Although he knows the ring is really valuable,Alex tells Mona her ring contains artificial gems,but he would be willing to buy it for $50.Mona agrees.Alex quickly takes the ring to Hanna's Antique Jewelry Shop and sells it for $1,000.A month later,Mona sees her ring on sale for $2,000 at the shop.Is Mona entitled to get the ring back?
A) Yes,she is the true owner of the ring since she was defrauded.
B) Yes,since Alex had void title to the ring.
C) No,since Alex had voidable title to the ring and Hanna was a good faith purchaser.
D) No,since Mona was an entruster.

Question

Quizplus · Accepted Answer

Alex had voidable title to the ring because he obtained it through fraud. However, since Hanna purchased the ring in good faith without knowledge of the fraud, she has a valid title to the ring. Mona cannot get the ring back from Hanna because Hanna is a bona fide purchaser.

Although He Knows the Ring Is Really Valuable,Alex Tells Mona