Final Answer:
Contracts presumed to be equitable mortgages include transactions involving sale with leaseback, deposit of title deeds, and transactions where possession remains with the seller, implying a security arrangement.
Step-by-step explanation:
Certain contracts are presumed to be equitable mortgages due to specific circumstances and legal implications. One such scenario is the sale with leaseback, where the apparent sale is accompanied by an agreement to lease the property back to the seller. This arrangement may indicate a financial transaction with the property serving as security rather than an outright sale.
Additionally, the deposit of title deeds can trigger the presumption of an equitable mortgage. When a borrower deposits the title deeds of a property with the lender, it suggests a security interest in the property. This presumption is based on the understanding that the depositor intends to create a security for a loan rather than transferring the title outright.
Another situation arises when possession of the property remains with the seller even after the purported sale. If the buyer does not take actual possession, it may imply that the transaction is more of a mortgage, where the property serves as security for a loan, rather than a true sale.
In these cases, the law presumes the existence of an equitable mortgage, emphasizing the need for clarity in contractual agreements to avoid legal complexities and disputes over the nature of the transaction.