it is not possible to include a term giving the mortgagee an option to purchaser the mortgaged property. Justify by reference to the case law.

Question

Quizplus · Accepted Answer

The case of Biggs v Hoddinott (1898) 2 Ch 307 established that it is not possible to include a term giving the mortgagee an option to purchase the mortgaged property. This is because such a term would give the mortgagee an unfair advantage over the mortgagor, as it would allow them to acquire the property at a price below its market value.

It Is Not Possible to Include a Term Giving the Mortgagee