A contracts to buy land, half the price to be paid down and half secured by a mortgage of the land. He…
The second Illustration to section 168 holds that "One-half of the purchase-money must be paid out of A's assets". Under section 168 the estate bears what is needed to…
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A contracts to buy land, half the price to be paid down and half secured by a mortgage of the land. He bequeaths the land to B and dies before paying or securing any of the price. How much of the price must A's estate pay?
Answer and explanation
Correct answer B
The second Illustration to section 168 holds that "One-half of the purchase-money must be paid out of A's assets". Under section 168 the estate bears what is needed to complete the testator's title, and under the contract only the cash half had to be paid for that. The other half was to remain secured on the land, so B takes the land subject to it.