Business Law Ch. 4

3 tests to determine whether item is a fixture by intent of attacher

-Annexation: if it would cause damage to remove or leave unfinished (built-in cabinet, wall-to-wall carpet) -Adaption: item that is not physically attached but is specifically adapted to real estate (custom cut rug, custom storm windows) -Relation: law prefers purchasers over sellers and tenants over landlords

Hadfield v. Gilchrist

-Hadfield went to car to find it had been towed -towing facility was fenced with one employee; vandals had cut hole in car/damaged it/stole from it while in facility's ownership -Hadfield sued the owner (Gilchrist) and he was found liable for the damages

Paul v. First National Bank

-Longs died in airplane crash and left large estate to Paul, including all fixtures. -Before he took possession, heirs living in the house removed certain items -Paul sued for wrongful taking of the items saying they were all fixtures; he won bc they said they were adaptations

Terry v. A.D. Locke

-Terry stripping motel rooms for renovation and found a box with thousands of dollars -brought action against motel saying they were the rightful owners of the lost property, but it was mislaid

Co-Operative

-apartment or office building -building owned by one entity and individuals purchase shares in it allowing them the right to lease the units

Benefit of bailor

-bailee takes possession of property without pay or benefit, but as an accommodation to the bailor -ex) friend agrees to store furniture, bailee has slight duty of care and won't be liable for damage unless grossly negligent

Tenancy-in-common

-each co-owner has an undivided fractional interest in the property, don't need to be equal -each has right to possess the property and can sell his or her share to another entity without affected the existence of the tenancy in common -can be used in timesharing agreements -when tenant-in-common dies, their share passes to heirs

Causa mortis

-gift in anticipation of death in the near future -donor must intend to give and gift must be delivered, but if donor recovers from the immediate threat then they can get the property back

Benefit od the bailee

-gratuitous bailments -ex) one person lends her friend her car; the duty of the bailee is to exercise a high degree of care

Personal Property

-has no fixed site but is movable -tangible and intangible

Tenancy by Entireties

-joint tenancy between husband and wife -when one dies, other becomes sole owner but can't sell without consent from the other

Inter vivos

-living gift; made by a person when the donor is alive and has no expectation of death -3 elements 1-donor must intend to give to donee 2-gift must be delivered 3-gift must be accepted

Rights and duties

-may be part of contract, expressed, or implied

Bailee/ bailor mutual benefit

-most common -usually involves a contract for hire -ex) entrusting property with someone for repair: bailor benefits by getting repair, bailee will benefit from compensation for repair. bailee liable for damages that may result

Easement

-nonpossessory -gives a right to use land of another for a specified purpose, but not to possess the land

Profits and Licenses

-nonpossessory -profit gives one a right to remove something from another's land ex) oil -license is a right to enter land for a particular purpose ex) watch movie in theater

Fixture

-personal property that has been affixed to the realty in such a manner to become part of the realty -pass with real estate by deed (personal property does not) -taxed as part of real estate -important for insurance

Fee simple absolute

-possessory -fullest interest in the bundle of rights -can sell, lease, improve, destroy, and pass property to heirs. Can pass to other entities without giving up the whole fee simple interest

Leaseholds

-possessory -interest in land created by a contract called a lease -tenant or lessee obtains the right to use the property for a specific purpose and specified time, pays rent to landlord/lessor

Fee tail

-possessory -passes the property from lineal generation to generation, promotes family wealth bc property is kept within the family -property is not very marketable and most states have abolished this

Life estate

-possessory -right of use and enjoyment of land as measured by the life of that person or another. -at the death of the person the fee simple interest reverts to the remainder men

Lost Property

-property that is involuntarily left somewhere -finder becomes owner except for true owner and finder has obligation to return it to the true owner -when certain time passes and owner doesn't claim and it is made public, the finder can keep it

Real Property

-the land and anything that is permanently attached to it -property owner owns everything above and below the land that they may responsibly use

Stolen Property

-treated as lost property -owner has superior title and thief does not gain it -couple buys ring from jeweler and need to pick it up in a week; another couple is shown the ring and also buy it. Jeweler is considered the thief and under UCC law, the second couple now owns it because it was sold

Trade Fixtures

business fixtures are allowed to be removed when lease is expiring and tenant just needs to restore property to original condition ex) putting in a pizza oven for a pizza parlor

Personal Property

has no fixed site but is movable

Intangible Property

has no physical being and may not be touched ex) stocks, bonds, patent rights, copyrights

Condominium

individuals own units of a larger parcel in fee simple, and are tenants in common with other owners

Tangible Property

may be touched ex) clothing, door knobs, pans

Bailment

occurs when one person (bailor) transfers personal property to another (bailee) with instructions to return it or otherwise dispose of it ex) take your car to the shop to be repaired - forming a bailment - and mechanic is obligated to return it

Community Property

only some states, each spouse owns half of all property acquired by the efforts of either spouse during marriage ("what's mine is yours")

Mislaid Property

property that is left somewhere and forgotten, finder must surrender it to owner of the premise where it is found, finder will then remember where they left it and claim it

Exculpatory clause in a contract

relieves bailee of liability for damages

Property Rights

the right to possess, use, sell, donate, lease, improve, and destroy

Joint Tenancy

upon death of one tenant, their share passes to other joint tenants -each joint tenant owns equal share

Abandoned Property

when the owner voluntarily and intentionally surrenders property making it unowned so the next person to find and want it may own it ex) leaving couch on curb for someone to take