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Property Law Outline: 3 - Part Test
Property Law Outline: 3 - Part Test
Property Law Outline: 3 - Part Test
GIFT personal property can be transferred by gift. The DONOR gives the gift to the
DONEE.
ACCESSION is the right to own things that become part of other things already
owned. (Lumber to furniture example)
CONFUSION means your stuff and my stuff are all mixed together and it is the SAME
KIND OF STUFF. Also known as FUNGIBLE GOODS. (Corn or soybeans in a grain
elevator) Each person owns a proportionate share of the whole as TENANTS IN
COMMON.
4. BAILMENT - a person who is not the owner of personal property has the rightful
possession of another persons personal property.
BAILOR actual owner of the personal property
BAILEE person who has lawful possession of another persons property.
3 KINDS OF BAILMENTS:
Bailments for the sole benefit of the BAILEE:
(e.g. I borrow your car to go pick up a package at the post office)
Bailee must use GREAT CARE!
(e.g. I take care of your dog while you are on vacation and dont charge you money)
Bailee must use SLIGHT CARE and is only liable for gross negligence
Mutual benefit bailments:
(e.g. I pay you to fix my TV while you hold it for repair)
Bailee must use ORDINARY CARE (reasonable person standard)
receipts from Hoosier Photo for the rolls of film. The receipts contained the
following language on the back:
"READ THIS NOTICE
"Although film price does not include processing by Kodak, the return of any film
or print to us for processing or any other purpose, will constitute an agreement by
you that if any such film or print is damaged or lost by us or any subsidiary
company, even though by negligence or other fault, it will be replaced with an
equivalent amount of Kodak film and processing and, except for such
replacement, the handling of such film or prints by us for any purpose is without
other warranty or liability."
Carr did not read this notice, nor was it called to his attention by Hoosier Photo,
but again, because of his experience as an amateur photographer and as an
attorney, Carr knew that Hoosier Photo, Kodak, and other processors of film gave
receipts to their customers containing printed limitation of liability clauses.
Hoosier Photo sent the film to Kodak for developing. Only five of the nine rolls of
film were returned to Carr. The other four rolls were lost by either Hoosier Photo
or Kodak.
On August 31, 1972, Carr filed suit against Hoosier Photo and Kodak seeking
[422 N.E.2d 1275]
damages of $10,000. The case was tried on an Agreed Statement. The trial court
entered judgment for Carr in the amount of $1013.60 plus interest and costs.
Carr appeals asserting the judgment of the court with respect to the amount of
damages awarded is contrary to law and against the weight of the evidence.
Hoosier Photo and Kodak cross-appeal asserting the trial court erred in entering
judgment in an amount greater than the value of the four rolls of film when the
notice on the film box and the receipt given to Carr by Hoosier Photo purported to
limit their liability to the cost of the rolls of film. Hoosier Photo and Kodak also
allege the trial court erred in entering judgment in an amount greater than the
cost of the film when there was no evidence Carr suffered damages caused by
Hoosier Photo or Kodak greater than that amount, and that Kodak and Hoosier
Photo did not accept bailment of the photographic images themselves and can
only be liable to the extent of the cost of the film.
But today, since airplanes and oil wells were not even conceived of in medieval England,
ones ownership rights to land depends upon what is reasonably necessary for its use
above and below the ground.
Ownership in land may also vary . . . . it depends upon what kind of ESTATE IN LAND
that you have.
TWO KINDS OF ESTATES IN LAND: Freehold and Leasehold
FREEHOLD ESTATES interests in the land are determined by the document that
conveys the land. Determined what the document or deed says about your interest in the
land. Examples:
Know one for Test/Class
Most Common when you buy land:
Fee Simple Estate deed says Joe buys house, if Joe bought Fee it says he has 100%
ownership of the land. The deed says To Joe and his heirs forever , must say these
words for this type of Freehold Estates, most common type. Deed says to Joe and his
heirs forever total ownership. Most common.
Fee Simple Determinable- if you agree to a type of use for the property, cant break it
otherwise you lose the land.
Deed says to Joe so long as alcohol is not served on the property total ownership
unless condition is broken, then ownership REVERTS to the prior owner or designee
Life Estate- Deed says To Joe for life, then to Brenda when Joe dies, then Brenda
owns the land as the REMAINDER.
******
Ownership in land may be CONCURRENT more than one person may own the same
land. Most common concurrent ownership is JOINT TENANCY. Has automatic transfer
of property to surviving joint tenant, called RIGHT OF SURVIVORSHIP.
Magic words required in deed: A and B in joint tenancy with right of survivorship and
not as tenants in common.
dies
A B
Otherwise . . . .
TENANCY IN COMMON results. Thats when 2 or more persons own property
together. But, when one dies, the heir(s) of the deceased now own(s) the land in common
with the surviving tenant:
A
dies
&
Heir(s)
(NOTE: in medieval England, a 6th requirement for deeding land to another was
LIVERY OF SEIZEN. It means, believe it or not, that the Grantor was required to hand
over a clod of dirt from the property over to the Grantee at the closing!)
Generally, there are TWO kinds of DEEDS: warranty deeds and quit claim deeds
WARRANTY DEED Grantor promises he-she has full ownership and power to
convey, no one else has an interest in the land, no one else has the right to kick the
grantee off the land. Best kind of deed for a Grantee.
QUITCLAIM DEED Grantor only conveys whatever interest he/she has in the land,
even if it is NONE. There is no guarantee that someone else may come along to claim
ownership.
After a Deed is signed and delivered, it must be RECORDED at the Recorder of Deeds
office. Why? To put others on NOTICE that the transaction took place.
******
Upon Death, by Devise or Descent if owner of land dies and leaves a Will, the land will
be transferred to the person(s) named in the Will. Called DEVISING property to the
heirs or others named in the Will.
If an owner of land dies without a Will, land is transferred under the States law of
DESCENT AND DISTRIBUTION. ( Usually, surviving spouse, parents, brothers,
sisters, etc.)
******
Another RARE means of transferring real property is ADVERSE POSSESSION.
Its done without agreement and without the consent of the owner!!!
If some person other than the owner claims ownership of the actual owners land for at
least 20 years, and does so . . . .
Actually
Visibly
Openly
Notoriously
Exclusively
And Hostilely
- - - - then, the land can be owned outright,
The real owner can usually protect his/her rights to stop the clock on adverse possession
by simply telling the adverse possessor that he has permission to use the land, but not as
an adverse possessor!
7. THE SECOND KIND OF ESTATE IN LAND - LEASEHOLD
A non-ownership interest is conveyed. The owner of the land retains ownership but
allows another to possess the land for a limited period of time. This is also known as
LANDLORD-TENANT relationship. (e.g. student apartments, dormitories)
The owner of land is the LANDLORD or the LESSOR.
The person renting the land is the TENANT or the LESSEE.
The contract between them is called the LEASE interest conveyed is a LEASEHOLD
ESTATE. It is NOT an ownership interest.
Allow tenant to have possession and quiet enjoyment landlord cannot kick tenant out
during lease term so long as tenant complies with terms of the lease.
Repair residential property landlord must maintain a habitable leasehold. There is an
IMPLIED WARRANTY OF HABITABILITY.
If uninhabitable, then tenant has the right of CONSTRUCTIVE EVICTION. Tenant can
move out and is no longer liable to pay rent.
Repair business property usually imposed by the lease itself . . . .
AMERICAN NATIONAL BANK v. K-MART Court must determine whether a
business tenant may recover damages for loss in rental value caused by landlords failure
to repair.
Diminution of rental value remedy: puts the business tenant in the position it would
have been in, if it had received the benefit of the premises in good repair.
MAJOR DUTY OF A TENANT not to commit WASTE. Must take care of property
being rented. DONT TRASH THE PLACE!!
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Modern View: Landlord is liable if DANGEROUS conditions are present and under the
direct control of the landlord.
Landlord can EVICT the tenant in a COURT ACTION called a FORCIBLE ENTRY
AND DETAINER action.
Landlord can sue for DAMAGES but also has the duty to MITIGATE the damages.
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Registered in the Federal patent office AND in EACH state that the product is sold.
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COMPUTER LAW not really a separate field because it already incorporates contract,
tort and property law principles and remedies.
Focus only on PROPERTY RIGHTS associated with computers and their software.
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