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Sonja [21]
3 years ago
6

Co-authors and sisters, Mary and Perry Corrigan, have just written their fourth bestseller, even though Mary lives on the East C

oast, while Perry resides in Calistoga. When the home next door to Perry is sold, Perry buys it and then gift deeds it to her sister so that they can live side-by-side for the several months of the year they spend writing together. In this situation, what consideration is necessary for this deed to be considered valid and legal?
Social Studies
1 answer:
Oksanka [162]3 years ago
3 0

Answer: A

A. Love and affection is the only consideration necessary.

B. Love and affection is necessary, but the consideration must also include something (another real property, an automobile, or monetary payment) that is worth at least 10% of the value of the property.

C. An agreement that Perry actually “owns” the property, and as such, may take it back without giving notice or a reason.

D. A and C

Explanation:

A Gift deed here refers to the transfer of ownership of a property between relatives without an exchange of money.

Consideration is an object of value each party involved in a contract, in this case, a transfer of deed, brings to the contract. In a situation where money is exchanged for a property, the considerations are the money and the property. However, love and affection can also be a form of consideration, referred to as good consideration. This kind of consideration is valid between relatives and is also used to donate to charities.

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