Edward bought a sports car from Luxury Imports by entering into a note and security agreement promising the car as collateral for the purchase money security interest.When Edward faced some tough financial times,he failed to make three monthly payments.Luxury Imports repossessed the car by removing the car wheels and advertised a public auction of the car.Edward appealed to his good friend Charles and managed to pay off the debt balance and Luxury's expenses of repossessing and advertising the sale.Edward's actions represent:

Question

Quizplus · Accepted Answer

Edward's actions represent redemption, which is the act of buying back the collateral from the secured creditor by paying the debt balance and expenses.

Edward Bought a Sports Car from Luxury Imports by Entering