Contract Analysis Assignment

Contract Analysis Part A – 24 pointsResidential House Lease
The following question is based on the Residential House Lease found in the Contracts
Module. Please reference the Lease by clause number as you answer the questions.
•
Essay (1-2 complete paragraphs with text references to support your answers)
Maria, the landlord, refuses to fix a small leak in the roof that was there prior to
the current tenant. The consequence is that black mold has been forming in the
attic. Juan, the current tenant, still has significant time remaining on his lease.
Juan has notified Maria in writing of the mold and leak issue. He is concerned
about the premises becoming unsafe to live in. It has been 14 days since he
emailed her his notification. What are Juan’s options if Maria declines to do the
repairs?
UCC Sales Contract
The following question is based on the Sales Contract found in the Contracts Module.
Please reference the Sales Contract by clause number as you answer the questions.
Remember, this is a contract under the UCC.
•
Essay (1-2 complete paragraphs per essay with text references to support your answers)
You received non-conforming goods as a result of an ambiguity in the contract.
You ordered goods thinking it was a particular product. You wanted Razor
scooters as that was the original oral communication when the selling merchant
was first contacted by you. Thereafter, in phone conversations, you and the seller
just talked about scooters. The selling merchant shipped scooters but not Razor
scooters. Upon receipt of the goods, what are your merchant options under the
contract?
Why are text references important? Contract language does not exist in a vacuum. It is written
based on the law. It is critical, therefore, to cite to the text to support your analysis.
Business Law
Text & Exercises
Ninth Edition
Roger LeRoy Miller
William Eric Hollowell
CHAPTER 39 LANDLORD AND TENANT LAW
Learning Outcomes (1)
LO1
LO2
LO3
LO4
Identify the different types of
tenancies.
Describe a lease agreement.
Outline the rights and duties under a
lease agreement.
Discuss the transfer of rights to
leased property.
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2
Learning Outcomes (2)
LO5
Explain how a lease usually
terminates.
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3
LO1
LO1
Types of Tenancies (1)
▪ Tenancy for Years.
– Created by an express contract.
– Property is leased for a specified
period of time.
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LO1
LO1
Types of Tenancies (2)
▪ Periodic Tenancy.
– Does not specify how long lease
lasts.
– But rent paid at certain intervals.
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LO1
LO1
Types of Tenancies (3)
▪ Tenancy at Will.
– For as long as both agree.
▪ Tenancy at Sufferance.
– Wrongful possession without the
right to possess.
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LO2
LO2
The Lease Agreement (1)
▪ Lease Agreement.
– Can be oral or written (oral may
not be enforceable).
– Gives tenant the temporary right
to exclusively possess the
property, and:
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LO2
LO2
The Lease Agreement (2)
▪ Lease Agreement.
– 1. Express an intent to establish
the relationship.
– 2. Transfer the property’s
possession to the tenant at the
beginning of the term.
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LO2
LO2
The Lease Agreement (3)
▪ Lease Agreement.
– 3. Provide for landlord’s
reversionary (future) interest,
allowing her to retake possession
of the property.
– 4. Describe the property (give its
street address).
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LO2
LO2
The Lease Agreement (4)
▪ Lease Agreement.
– 5. Indicate the length of the term,
the amount of the rent, and how
and when the rent is to be paid.
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LO3
LO3 Rights and Duties of
Landlords and Tenants (1)
▪ Possession.
– Tenant’s right to exclusive
possession is only subject to
landlord’s limited right to come
unto the property.
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LO3
LO3 Rights and Duties of
Landlords and Tenants (2)
▪ Possession.
– Covenant of Quiet Enjoyment:
Landlord promises Tenant’s peace
and enjoyment of the property.
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LO3
LO3 Rights and Duties of
Landlords and Tenants (3)
▪ Possession.
– Eviction: occurs when Landlord
deprives tenant of possession of
the leased property; or interferes
with use or enjoyment of the
property to the extent that Tenant
cannot use or enjoy.
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LO3
LO3 Rights and Duties of
Landlords and Tenants (4)
▪ Rights and Duties: Possession.
– Constructive Eviction: occurs when
landlord breaches lease or
covenant or quiet enjoyment; and
landlord makes it impossible for
the tenant to use and enjoy the
property.
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LO3
LO3 Rights and Duties of
Landlords and Tenants (5)
▪ Use and Maintenance.
– Implied Warranty of Habitability:
Landlord must furnish premises in
habitable condition.
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LO3
LO3 Rights and Duties of
Landlords and Tenants (6)
▪ Use and Maintenance.
– Implied Warranty of Habitability:
landlord responsible for maintaining
common areas (e.g., stairs, parking
lots, elevators), and repairing major
or substantial defects.
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LO3
LO3 Rights and Duties of
Landlords and Tenants (7)
▪ Rent for Leased Property.
– Payment based on agreement,
custom, state statute, waiver.
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LO3
LO3 Rights and Duties of
Landlords and Tenants (8)
▪ Rent for Leased Property.
– Tenant can deposit rent into an
‘escrow’ account if landlord
breaches the implied warranty of
habitability.
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LO4
LO4 Transferring Rights to
Leased Property (1)
▪ Landlord may sell any and all
of his rights in the real
property.
– New owner buys “subject to the
lease,” if lease is recorded.
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LO4
LO4 Transferring Rights to
Leased Property (2)
▪ Assignment.
– Tenant transfers his or her entire
interest in the lease to a third
person, but original Tenant is not
released from liability under the
lease.
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LO4
LO4 Transferring Rights to
Leased Property (3)
▪ Sublease
– Tenant transfers all or part of his
interest in the lease for a shorter
period of time than the lease. The
original tenant is not relieved of
liability under the lease.
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LO5
LO 5
Terminating the Lease (1)
▪ Usually terminates when it
ends; tenant surrenders
property and landlord retakes
possession.
– Once lease terminates, tenant has
no legal right to remain.
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LO5
LO 5
Terminating the Lease (2)
▪ Terminating The Lease.
– What happens when a tenant
abandons the premises?
• Tenant is responsible to pay the rent,
but landlord is responsible to mitigate
his damages by making reasonable
attempts to lease the property.
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Business Law
Text & Exercises
Ninth Edition
Roger LeRoy Miller
William Eric Hollowell
CHAPTER 40 WILLS AND TRUSTS
Learning Outcomes
LO1
Outline the requirements of a will.
LO2
Discuss how to revoke or modify a
will.
Describe intestate distribution of
property.
List the elements of a trust.
LO3
LO4
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2
Wills (1)
▪ A will is the final declaration of
how a person wants to have his
property disposed of after death.
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3
Wills (2)
▪ Terminology.
– Testator (Testatrix): person who
makes a will.
– Probate a will: establish its
validity.
– Probate Court: oversees
administration of estate.
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Wills (3)
▪ Terminology.
– Executor is a personal
representative named in a will.
– Administrator is a personal
representative appointed by a
court for a person without a will.
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5
Wills (4)
▪ Terminology.
– Devise: gift of real estate.
– Bequest (Legacy): gift of personal
property.
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Wills (5)
▪ Types of Gifts.
– Specific: describes particular
property.
– General: specifies value of
property.
– Residuary: pays for debts after
gifts are made.
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LO1
L O 1
Requirements of
a Valid Will (1)
1. Testamentary Capacity: Testator
must have legal capacity at the time
the will is made (the “sound mind”
requirement).
2. Testamentary Intent: Testator must
have the intent to transfer and
distribute his or her property.
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LO1
L O 1
Requirements of
a Valid Will (2)
3. Written: Will must be in writing.
(Holographic will in Testator’s
handwriting.)
4. Signed: Will must be signed by
Testator.
5. Witnessed: A written will must be
witnessed (attested to be genuine) by
at least two competent witnesses.
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LO1
L O 1
Requirements of
a Valid Will (3)
5. Publication: will is published by
Testator by an oral declaration to
the witnesses that the document
they are signing is in fact his last
will and testament.
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LO2
L O 2
Revocation of a Will
▪ Revocation by Act of Testator.
–
–
–
–
–
Physical Acts.
Subsequent Writings.
Marriage.
Divorce.
Children.
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11
LO3
L O 3
Intestacy Laws (1)
▪ State laws that regulate how a
decedent’s property is
distributed when he or she dies
without a will.
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12
LO3
L O 3
Intestacy Laws (2)
▪ Order of Distribution.
– First decedent’s debts.
– Then to surviving spouse and
children. If no surviving spouse or
child, then to grandchildren, then
brothers and sisters, and then
parents.
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LO3
L O 3
Intestacy Laws (3)
▪ Surviving Spouse and Children.
– Surviving spouse usually receives
the homestead and a share of the
estate, as follows:
– 1/3 of estate if two or more
children.
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LO3
L O 3
Intestacy Laws (4)
▪ Surviving Spouse and Children.
– 1/2 of estate if one surviving child.
– Entire estate, if no children or
grandchildren.
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LO3
L O 3
Intestacy Laws (5)
▪ Grandchildren.
– Per Stirpes Distribution: method of
dividing an intestate share by which
a class or group of distributees take
the share that their deceased parent
would have been entitled to inherit
had that parent lived.
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LO3
L O 3
Intestacy Laws (6)
▪ Grandchildren.
– Per Capita Distribution: each
person takes an equal share of the
estate.
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17
Per Stirpes Distribution
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Per Capita Distribution
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19
Trusts (1)
▪ Trust.
– An arrangement to administer
property for the benefit of
another.
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Trusts (2)
▪ Trustee.
– Holds property on behalf of the
beneficiary.
– Acts with honesty, good faith, and
prudence in administering the
trust and must exercise a high
degree of loyalty toward the trust
beneficiaries.
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LO4
L O 4
Elements of a Trust
▪ Designated beneficiary.
▪ Designated trustee.
▪ Fund sufficiently identified to
enable title to pass to the trustee.
▪ Actual delivery to the trustee with
the intention of passing title.
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Express Trusts
▪ Living Trusts: created by and
effective during grantor’s lifetime
(revocable vs. irrevocable).
▪ Testamentary Trusts: created as
part of a will, comes into
existence at testator’s death.
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Revocable Living Trust
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Implied Trusts
▪ Constructive Trusts.
– Arises by operation of the law in
the interest of equity and fairness.
▪ Resulting Trusts.
– Arises from the conduct of the
parties.
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Business Law
Text & Exercises
Ninth Edition
Roger LeRoy Miller
William Eric Hollowell
CHAPTER 38 REAL PROPERTY
Learning Outcomes
LO1
Define real property.
LO2
Identify common types of real
property ownership.
Explain how real property ownership
is transferred.
Describe eminent domain.
LO3
LO4
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2
The Nature of
Real Property (1)
LO1
L O 1
▪ Real property is immovable and
includes:
–
–
–
–
–
Land & Permanent Buildings.
Airspace & Subsurface Rights.
Plant Life and Vegetation.
Subsurface (mineral) rights.
Fixtures.
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3
The Nature of
Real Property (2)
LO1
L O 1
▪ Real property includes:
– Fixtures.
• Personal property that is
“intentionally” and permanently
affixed to real property.
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The Nature of
Real Property (3)
LO1
L O 1
▪ Real property includes:
– Fixtures.
• Intent is determined by showing:
–Property cannot be removed without
causing damage to the realty, or
–Property is so adapted to the realty
that it has become part of the realty.
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LO2
L O 2
Ownership Interests (1)
▪ Fee Simple Absolute.
– Gives owner the greatest
aggregation of rights, powers and
privileges possible under
American law.
– Potentially infinite in duration.
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LO2
L O 2
Ownership Interests (2)
▪ Fee Simple Absolute.
– Owner has exclusive possession
and use of property and can
assign to heirs.
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LO2
L O 2
Ownership Interests (3)
▪ Life Estates.
– Estate that lasts for the life of some
specified individual.
– “A grants property to B for B’s life”
grants B a life estate. When B dies,
the property returns to A.
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LO2
L O 2
Ownership Interests (4)
▪ Nonpossessory Interests.
– Easement: right to make limited
use of another person’s real
property without taking anything
from the property.
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LO2
L O 2
Ownership Interests (5)
▪ Nonpossessory Interests.
– Profit: right to go onto another’s
land and remove some part of the
land itself (or some product of the
land).
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LO2
L O 2
Ownership Interests (6)
▪ Nonpossessory Interests.
– License: revocable right to come
unto another’s land without
removing anything from the land.
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LO3
L O 3
Transfer of Ownership (1)
▪ Ownership in real property can
be transferred by:
–
–
–
–
–
–
Written Deed.
Gift.
Sale.
Inheritance.
Adverse Possession.
Eminent Domain.
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LO3
LO3
Transfer of Ownership (2)
▪ Deeds.
– Legal, written document setting forth
the interests in real property being
transferred.
– Necessary components: names of
grantor and grantee, words evidencing
intent to convey, legal description,
grantor’s signature, and delivery of the
deed.
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LO3
LO3
Transfer of Ownership (3)
▪ Will or Inheritance.
– Owner of real property dies, his
property is transferred by will
(testate).
▪ Without Will (intestate).
– Title is transferred at the time state
law provides.
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LO3
LO3
Transfer of Ownership (4)
▪ Adverse Possession.
– One person possesses the property
of another for a statutory period of
time. Possession must be:
• Actual and exclusive.
• Open, visible and notorious.
• Continuous and peaceable.
• Hostile and adverse.
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Transfer of Ownership (5)
▪ Eminent Domain.
LO4
– Government can only “take”
private land for public use with
just compensation.
– Generally invoked during
condemnation proceedings.
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