GBL 395 Examination 2 Flashcard Set


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Side ASide B
Our legally protected rights and interests in anything of value that is subject to ownership.
An item of tangible movable or immovable except real estate and things connected with real property.
Real Property
And subset of land that has been legally defined and the improvements to it were made by human efforts: Any buildings, machinery, wells, damn, ponds, mines, canals, roads, etc. Includes...
Personal Property
"Private property." It is moveable. AKA "Personalty" or "Chattel"
Transferring less than the remaining duration on a lease to another person.
Transferring the entire remaining lease to another person. If a subletter makes damages and you move back in, you might be held responsible. With assignment,...
A temporary transfer in possession and control of personal property to another person. Does not transfer title. Transfers include: Shipping goods (fed ex), Lending...
Owner who is transferring possession to another person.
Bailee and their responsibilities
The person receiving temporary possession of property. They must care for the property and prevent damage. Must also return the property in the agreed upon condition with the...
Fungible Goods
Goods that are indistinguishable from other goods of their kind. Ex. Salt, sand, grain. Bailor won't get the exact same good, but the same quantity and quality.
Bailee Liability for Damages
If the bailment benefits only the bailor, the bailee is liable only for gross neglect. Ex. Storing a friends RV in your extra lot. If the bailment benefits only the bailee, the...
Buildings and structures
Improvements to land are considered buildings. Structures and buildings are permanently attached to land.
When real property is sold:
  • The buyer takes posession of the real property
  • The seller retains the personal property (furniture, appliances, etc.)
Possessory Interests in land
Having an interest in real estate because you own it. Two types:
  1. Freehold Estate
  2. Leasehold Estate
Fee Simple Absolute (Freehold estate)
  • Most common type
  • You have more rights to the land than anyone else in the state
  • Can own, occupy, farm, use, mine, harvest, convey, improve, lease.
  • Can...
Free simple defeasible
The grantor attaches a condition to the conveyance of land. The grantee loses ownership if they fail to meet the condition, in which case the land goes back to the grantor or...
Seller or giver of land
Receiver of land by gift or purchase
Differences between devising and bequeathment
Upon death, personal property is bequeathed and real property is devised
Life estate
  • Owner called a "life tenent"
  • Owner has many rights of fee simple absolute, but CANNOT DEVISE LAND AFTER DEATH.
  • You can give the land...
Concurrent estates in real property See keg 6
Three types
  • Joint tenancy
  • Tenants in common
  • Tenancy by the entirety
Joint Tenancy
  • Owners must have equal interests
  • Owners are free to sell their interest without permission
  • Creditors can take debtor's interest
  • Owners...
Tenants in Common
  • Freedom to sell ones interests without consent
  • Creditors can take debtors interest
  • Owners CAN leave their interest to heirs by devise.
  • Owners...
Tenancy by the Entirety
  • Permission is required to sell ones interests
  • Creditors of only one debtor CANNOT attach any interest. Ex. If your spouse has large debts or is...
Leasehold estates *The lessee has exclusive ownership*
Four types
  • Tenancy for years
  • Periodic tenancy
  • Tenancy at will
  • Tenancy at sufferance
Tenancy for Years
  • Any fixed period of time, as long as it is fixed.
  • Start and end date are stated. If no end date is stated, it is not tenancy for years.
Periodic Tenancy
  • Automatically renews for the duration of the lease
  • One party must warn the other of planned termination. If they warn too late, the lease renews.
Tenancy at Will
  • Either party can terminate at any time. Must give notice as per the terms of the lease contract (ex. 30 days).
Tenancy at sufferance
  • Tenant stays in the property after the lease has expired. They don't move out.
Non-possessory interests in land
1. Profits
  • A right you purchase to enter someones land and take things from it (lumber, deer, mine)
  • Right of privelege to enter someones...
The right to use another person's land. Dominant tenement- The land owned by the user. It benefits from the use of someone else's land. Servient tenement- The land being...
Easements (continued)
Easements in gross- Adjacency is not required.
  • Usually benefits many landowners
  • Ex. Telephone pole/lines.
  • ^City/owner does NOT own land, only...
Creation of easements
Three ways
  1. By express grant and express reservation
  • Granted and reserved rights are stated in the deed that transfers property ownership....
Events causing owner's loss of possession
Two ways. 1. Adverse possession-
  • Same reqs in MI as prescriptive easements. Involuntarily transfers possessary rights of land from one to another.
CASE: David Lucas v. South Carolina
D.L. bought property on a S.C. beach with the intention of building 2 houses, one for himself and one to sell. Gov't then passed a law banning beachfront construction. He...
Nuisance law as a restriction on land use
Public nuisance-
  • A landowner's conduct that interferes with the health and safety of the public in general.
  • Only public officials can bring a suit for...
Government land use restrictions
Two ways- 1. Zoning-
  • Isolates businesses from homes
  • Restricts construction to specific types
  • Regulates pop. density and how many people...
The final formal step in the sale of real property. It refers to the closing of escrow, which was opened when the purchase process began.
A transfer of the title to real property by sale or gift
The instrument or document of conveyance of title to real property from one person to another
Restrictive convenant
A restriction on the use of land attached to the deed which future owners must obey. Covenants that perpetuate discrimination against minorities are unconstitutional.
Refers to the rights of owners of land adjacent to water
The abuse, neglect, or destructive use of property by one who is in rightful possession. It is a tenant's duty to not commit waste.
Intellectual Property
Intangible form of personal property; could be a company's most valuable asset which sets them apart from competition. Five types-
  1. Copyright
  2. Trademark
  3. Trade...
Copyright *Exclusive federal court jurisdiction*
The exclusive right to reproduce, publish, and sell a fixed form of a creative work of art
  • Lasts for 70 years after the creator dies
  • If it is owned by a corporation,...
Trademark *Exclusive federal court jurisdiction*
A distinctive identifier used by a manufacturer or seller to identify its products and distinguish them from the products of its competitors. Must be defended or it becomes public...
Brand names made generic by public usage
  • Cellophane
  • Yo-yo
  • Trampoline
  • Corn flakes
  • Dry ice
  • Lanolin
  • Escalator
  • Cube steak
  • Aspirin
  • Linoleum
  • Kerosene
  • Zipper
  • Nylon
  • Raisin...
Trade Dress
The non-functional features, characteristics, decorations, or image of goods or services that promote their sale and distinguish them from their competitors. Includes: -Color of packaging -Appearance...
Trade Secret
Any secret formula, pattern, process, program, device, method, technique, or compilation of information a business uses that gives it an advantage over its competitors who do not know...
A monopoly the government grants to inventors allowing them to exclusively make, use, and sell their inventions. - The U.S. granted its 7 millionth? patent recently - Protects from...
Contracts (the six elements to form one)
Elements of a contract- All of these must be present to form a valid contract - Offer - Acceptance - Consideration - Genuine assent - Competent parties - Legal object
The proposal of a bargain (exchange of two things) to another party. Intent- Did they intent to make good on their promise? Intent is decided by the following: 1. Words-...
Terminating Offers
Cannot be accepted after termination -Terms of the offer (states expiration time) - Lapse of time (Dies a natural death after a reasonable length of time, usually 30 days). An...
- Must be intent to accept - Acceptance must not change the material terms of the offer (essentially a counter offer) - Only the offeree can accept the offer (someone overhearing...
Legal value, bargained for and given in exchange for an act or a promise. - To enforce a promise, both parties must stand to give something up - Each party must suffer detriment....
Promissory Estoppel
Must have all three of these requirements: 1. A promise reasonably expected to induce promisee's substantial action 2. Promisee's justifiable reliance on the promise to compensate...
CASE: Thorne vs. Deas (1809)
John Thorne owns a ship with 3 partners and they rent it to others. John says he will get insurance for the ship, but forgets. The ship sinks, and the partners ask John about the...
Quasi Contract
Court enforced liability against any party who knowingly accepts a benefit not contracted for. Ex. Allow someone to paint your house when you know they shouldnt be. Court will...
Genuine Assent
Four events prevent genuine assent. 1. Fraud 2. Duress 3. Undue influence 4. Mistake
Four elements to prove fraud. 1. Misrepresentation or omission of material fact (a detail important enough to change someone's mind about entering a contract) 2. Intent to deceive...
CASE(ish): Jody Berry v. Hooters
Company owned 11 Hooters franchises, told all waitresses that the best seller of a brand of beer from each location would be in a raffle to win a Toyota. Jody won the raffle,...
- A party threatens another to force him to enter a contract (physical, economic, emotional harm) - You agree to a price you know is unfair because you are under duress, afraid, and...
Undue influence
There is often a fiduciary relationship (trust) between the parties - One party is usually in a subservient role, commonly caregiver/patient. - Ex. Nurse convinces man to leave his...
Two kinds. 1. Unilateral mistakes - One party makes the mistake and neither is aware of the mistake. - Recission is NOT allowed, unless the non- mistaken party did know of the mistake...
Competent parties
In order to enter contract, both parties must be competent, meaning they must understand they will be legally obligated to perform the contract. Barriers to competency are: -...
Legal Object
Contracts are void if they are unlawful. Contracts that violate statutes or case law: Blue laws- The jurisdiction doesnt allow a contract to occur (sale of alcohol Sundays before...
Three types of Contracts
Unilateral- Contains a promise by only one of the parties - Ex. Promising to pay someone $20 for each time they mow your lawn. Bilateral Contract- Both parties promise something. Can...

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