A and B entered into a contract of sale over A's house but did not reflect the actual purchase price. What is the nature of the contract?
A)Valid and relatively simulated contract but can be reformed.
B)Void as there is total lack of consideration.
C)Voidable due to lack of consideration.
D)Unenforceable.

Question

Quizplus · Accepted Answer

The contract is valid and relatively simulated if the parties have agreed upon the real terms privately but choose to document different terms for various reasons (e.g., tax purposes). It can be reformed to reflect the true agreement if necessary.

A and B Entered into a Contract of Sale Over