Final answer:
A 'Marketable Title' is a clear property title that a reasonable purchaser would accept, free from significant defects. Mechanisms like guarantees, warranties, and reputations are used to overcome the issue of imperfect information in the sale of goods or property. The correct option is c.
Step-by-step explanation:
The reference to title which a reasonable purchaser, informed as to the facts and their legal importance and acting with reasonable care, would be willing and ought to accept, is known as a Marketable Title. This indicates that the property title is clear of significant defects or clouds that could affect its transfer, allowing the purchaser to buy with confidence that the property is free from undisclosed encumbrances or legal issues. Accurate property titles are essential, particularly when dealing with the sale of farm land where dimensions and acreage must be clearly defined.
To reduce the risk of imperfect information when selling goods such as emeralds or used cars, a seller could provide guarantees, warranties, service contracts, or rely on a strong reputation. Likewise, occupational licenses, certifications, and collateral are mechanisms used in various markets to ensure the quality or reliability of a transaction.