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Alessandro Needs to Raise Money Quickly in Order to Save

Question 11

Multiple Choice

Alessandro needs to raise money quickly in order to save his business from bankruptcy. A friend of his tells him of an investment which promises big returns and cannot go wrong. In a moment of weakness he decides to get his aunt, an illiterate elderly widow, who only speaks Italian, to sign a deed transferring the property of her house to him by telling her that she is merely witnessing his signature in relation to a business deal. In order to secure the money needed for the investment, Allessandro mortgages the house to a bank. The investment turns out to be a failure and Allessandro is unable to pay off the mortgage. The bank seeks to repossess the house from his aunt. Can the aunt prevent the bank from evicting her?


A) No, a signature is at all times binding. The bank may take possession of the house.
B) No, the bank has acquired rights innocently and for value.
C) Yes, the aunt was mistaken as to the nature of the document she signed.
D) Yes, the contract is voidable for misrepresentation.

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