[Solved] Mr. MO executed a real estate mortgage over his land in favor of Mr. ME as security for a substantial loan he obtained from the latter. The mortgage agreement provided for a “first refusal clause”, i.e., Mr. MO, is obligated to offer the property first to Mr. ME in case he decides to sell the property mortgaged. Which of the following statements expresses a correct legal principle?

Q.	Mr. MO executed a real estate mortgage over his land in favor of Mr. ME as security for a substantial loan he obtained from the latter. The mortgage agreement provided for a “first refusal clause”, i.e., Mr. MO, is obligated to offer the property first to Mr. ME in case he decides to sell the property mortgaged. Which of the following statements expresses a correct legal principle?
A.	As long as the mortgage exists, Mr. MO has no right to sell his property to anyone.
B.	Mr. MO may sell the property mortgaged with the consent of Mr. ME.
C.	A violation of the “right of first refusal clause” will make the contract entered into by Mr. MO with anyone, void abs initio.
D.	A violation of the ‘right of first refusal clause” will make the contract entered into by Mr. ME rescissible
Answer» D. A violation of the ‘right of first refusal clause” will make the contract entered into by Mr. ME rescissible

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