Property
What are the essential terms for a real estate contract?
Identify both parties, the signature of the party to be charged, a description of the property, price, and method of payment
What five types of agreements are subject to the Statute of Frauds?
Marriage, suretyship, contracts that take longer than one year to complete, sale-of-goods contract worth $500 or more, and real estate (M. SOUR)
What are the elements of negligence?
Duty, breach, causation, damages.
What duty do landowners owe to known trespassers under the traditional tripartite structure?
They have a duty to warn or protect known trespassers from hidden dangers.
Duty of loyalty, duty to obey reasonable instructions, duty to exercise reasonable care.
The Rule of Convenience prevents the Rule Against Perpetuities from affecting a future interest because...
It vests the future interest in any member(s) of the class who are entitled to immediate possession.
Harold hires Jack to redo the tile in all the bathrooms and kitchen of his house for $15,000. Jack does half the kitchen and two of the three bathrooms, which is approximately $9,000 worth of work. Before finishing the job, Jack realizes that his true calling is with the circus and takes off with a troupe. Harold subsequently hires Lisa to finish the tiling, and Lisa charged $6,500. Harold sues Jack for breach of contract, and Jack countersues for payment of what he did before leaving. What can each party recover in damages?
Jack substantially performed on the contract and conferred a measurable benefit to Harold worth $9,000. For the substantial performance, Harold is liable to Jack for the $9,000. However, Jack willfully breached by choosing not to finish the job in favor of joining the circus, so he cannot recover for substantial performance. Additionally, Harold had to pay Lisa to finish the job. Harold paid an extra $2,500 than he would have if Jack had finished the job before leaving. Due to Jack's willful breach, he will recover nothing, and he must pay $2,500 to Harold in expectation damages.
What does a private individual commenting on a matter of public concern have to show in a defamation lawsuit?
They must show the statement was false and the person who made the statement was reckless with regard to the falsity.
Name three situations in which the parol evidence rule does NOT apply.
1. Prove a condition precedent
2. Clarify an obviously ambiguous term
3. Show evidence of a subsequent deal
4. Supplementing terms with course of performance, course of dealing, or trade usage
5. Providing evidence to seek remedy
6. Evidence used to assert a defense for enforcement
7. Evidence used to assert a defense for formation.
What are some factors to consider in determining if an agent is an independent contractor?
Freedom to work for others, paid on a fixed fee, high level of independence, provides their own tools for the work.
Billy and Sally enter into a contract for Billy to purchase Sally's house for $355,000. The contract requires Billy to pay a $10,000 deposit upon execution of the contract, and then he will pay the remainder of the purchase price on the closing date, August 1. On July 18, Billy tells Sally that his loan application with the bank was denied, but that he could get his rich great aunt to give him the money by August 7. On August 1, Billy doesn't show up to the closing, and Sally seeks to rescind the contract and sell her house to Betsy. Can Sally properly sell the house to Betsy?
Sally cannot rescind the contract and sell to Betsy. When a contract doesn't contain a "time is of the essence" clause and the conduct of the parties doesn't indicate time is of the essence, strict adherence to a closing date isn't required. So long as performance is completed within a reasonable time of the set closing date, the breach is not grounds for rescission. Since Billy was going to pay the outstanding balance only a few days after the set closing date, he performed within a reasonable time and was not required to strictly adhere to the August 1 closing date. (Note: The nonbreaching party may sue for damages incurred because of the delay from the specified closing date.)
A popular band posts this to Instagram: "If submitted before October 31, whoever draws a design based on our new album that gets used to make merchandise for our next tour gets $1,000 and tickets to a show in the nearest city." An avid fan draws a design inspired by the cover of the band's album and submitted it on October 28, and the band told the fan they loved the design. However, a week later, the band decided that selling merchandise was capitalist propaganda and decided not to sell anything. Does the fan have any recourse?
Yes. When a party whose duty is subject to a condition wrongfully interferes with or hinders the condition, the condition is waived, and that party has an absolute duty to perform. There were three conditions: (1) submit before October 31; (2) the design is based on the new album; and (3) the design is used on merchandise for the band's next tour. The band's performance of providing $1,000 and tickets to a show was based on those three conditions. By deciding not to sell merchandise on tour, the band wrongfully interfered with one of the conditions, which waived the condition and made their duty to pay up absolute. The fan may sue to recover the money and tickets.
When can a bystander recover for negligent infliction of emotional distress (NIED)?
If the bystander (1) is closely related to the person injured by the defendant; (2) was present at the scene of the injury; and (3) personally observed the injury occur.
Tara had a written lease agreement with Lindsey for a swanky apartment in downtown Salt Lake. When she toured the unit with Lindsey and as Lindsey was drafting the lease agreement, Tara explained that she needed this apartment because her boyfriend played for the mediocre hockey team in the area. However, just after signing the lease, Tara's boyfriend got signed for the much better hockey team in Philadelphia, and the two had to move. Upon learning this, Tara immediately calls Lindsey to let her know and then moves to Philly. Lindsey lets the apartment sit empty for half of Tara's lease period before she sues Tara for rent for the entire lease. What defense(s) are available to Tara?
Tara may assert frustration of purpose. She explained to Lindsey that she needed the apartment specifically to live in the area her boyfriend was playing hockey in. The non-occurrence of him joining a new team was a basic assumption of the lease. Additionally, his reassignment is not Tara's fault. Thus, Tara may avoid Lindsey's breach of contract claim because of the doctrine of frustration of purpose.
Alternatively, if a court does not find that Tara can get out of the lease because of frustration of purpose, her liability for damages is still limited. In a residential lease, the majority of jurisdictions impose a duty to mitigate on the landlord. Here, Tara immediately informed Lindsey that she could not fulfill the lease. Lindsey did nothing to re-rent the apartment to someone else, so she violated her duty to mitigate. This largely precludes her from obtaining past rent from Tara. Further, a landlord may not sue to recover future rent. Lindsey cannot recover rent for the latter half of the lease since those payments had not yet come due when she initiated the action against Tara. As such, it is unlikely a court would find Tara liable to Lindsey for any rent due on the lease.
Tammy was a door-to-door saleswoman employed by a well-known makeup company. Being a makeup enthusiast, she had been experimenting with making her own products at home on the side. While she was out doing sales one day, a lady complained that the makeup she'd bought from Tammy previously would sweat off during the day. Tammy pulled out some of the products she'd made herself and told the woman they wouldn't sweat off. The lady happily purchased Tammy's products and told all her friends about them. When Tammy went to that neighborhood next, all the people asked Tammy about her own products and didn't buy the company's makeup products anymore. Does the company have grounds to seek relief from Tammy's actions?
Brian bought a house and took out a loan to pay for it. The bank promptly recorded the mortgage. After three years of timely payments, Brian decides to become a shaman and moves to Hungary. He sells his house to Tina, who buys the home subject to Brian's mortgage. A year goes by with no payments made toward the mortgage. The bank commences foreclosure proceedings on the home, despite Tina's protests. May the bank foreclose on the home?
Yes. When a subsequent buyer purchases a property subject to a mortgage, that buyer isn't personally liable for the mortgage. However, the mortgagee can still foreclose on the property to recover the outstanding balance on the mortgage.
Pete owes Patrick $5,000. Patrick tells Pete to pay the money directly to his good friend, Andy. Patrick then tells Andy he's gifting him $5,000 to help him pursue a degree in music. Patrick specifies that Andy will get the money from Pete. Andy is thrilled at receiving this much money and proceeds to pay the $4,900 seat deposit to enroll in the local university's music program. Patrick later tells Pete to just pay the money directly to him, and Andy will get nothing. Can Patrick keep the money at this point?
Two college students are lighting fireworks on a residential street. They each light a firework at the same time, and both go into a neighbor's yard and set the yard and house on fire. The neighbor sues both students for negligence. Who bears the burden of proof?
When there are only a few tortfeasors, and it's unclear which one actually caused the injury, the burden shifts to the defendants to individually show that they are not at fault. If an individual defendant cannot meet this burden, they are all held jointly and severally liable.
Elmo really, really hates Rocko and wanted to destroy him. Elmo hacks into Rocko's laptop and discovers that he loves being humiliated and dominated by older women. Elmo tells Big Bird about his findings in hopes he'll spread the word and ruin Rocko. Big Bird is a popular TikToker and does a story time about Rocko's kinks, which gets 1.6 million views. Rocko subsequently loses his wife and his job and cries himself to sleep every night. Does Rocko have a claim against Elmo? BONUS: if Rocko does have a claim, what can he recover?
BONUS: A party can recover damages for emotional and/or mental distress without showing special damages for a claim of public disclosure of private facts.
In what situations is a principal still vicariously liable for an independent contractor's actions?
When the independent contractor is doing inherently dangerous work, there's a nondelegable duty, and if the principal maintains control over certain tasks and the conduct occurs within those tasks.
A bank has a mortgage on Sally's farmland. Sally subsequently obtains a second mortgage from a different bank to purchase the neighboring tract of farmland. A few months later, Sally secures the second mortgage with the farmland she currently owns. Both mortgages were promptly and properly recorded. Sally defaults on both loans. When foreclosure proceedings commence, which mortgage has priority and why?
Despite being junior to a properly recorded senior interest, the second mortgage takes priority because it is a purchase-money mortgage. Purchase-money mortgages will take priority over recorded senior interests that arose before the mortgagor acquired the property bought with the purchase-money mortgage.
Burt purchased a set of antique silver cutlery from Ernie. The sales contract specified that the set came with 30 pieces of cutlery, that Ernie would deliver them on July 1, and it was signed by Burt. The two, considering their long-term "friendship," decided they'd work out the price later.
Ernie delivered the cutlery to Burt on the specified date. Burt was short on cash at the time, and he wrote Ernie a check for $10,000. The memo line read, "This check is in full and final satisfaction of my obligation for the antique silver cutlery." Ernie didn't hesitate in snatching the check and immediately cashing it at his bank, and the check went through. Ernie realized after the fact that the check was only for $10,000, but an accredited appraiser had told him the set was worth at least $25,000. Can Ernie pursue Burt for the $15,000 difference between market value and what Burt paid for the cutlery?
No. The contract did not have a specific price, nor did the parties contemplate a set price, so the price is unliquidated. The check Burt tendered for the cutlery had a conspicuous statement stating that it was intended to be in full satisfaction of his financial obligation to Ernie. Ernie never communicated the appraiser's finding, and there's nothing else to indicate Burt tendered the check in bad faith. Ernie subsequently cashed the check and received the funds from it. This meets the requirements for a proper accord and satisfaction, so Ernie cannot recover the difference from Burt.
Two drivers simultaneously try to pull into the same parking spot, causing them to collide. One of the vehicles is a brand-new Porsche, which sustained $15,000 of damage, and the other is a 2008 Subaru WRX, which sustained $6,000 of damage. A jury subsequently finds that the Porsche driver was 60% at fault, and the Subaru driver is 40% at fault. The jurisdiction follows applies pure comparative negligence. How much is each driver entitled to in damages?
In a pure comparative negligence jurisdiction, a party may recover the percentage for which they were NOT at fault. Here, the Porsche driver was found 60% at fault, so he can only recover 40%. He is entitled to $6,000 in damages. The Subaru driver was found 40% at fault, so he can recover 60%. He is entitled to $3,600 in damages.
James owns Blackacre in fee simple absolute. He drafts a writing that states, "to Allen for life, then to Allen's widow for life, then to Allen's heirs who reach the age of 25." At this time, Allen (James' son) is seven.
Twenty years later, Allen marries Jane, and they have twins. Jane passes away from a medical condition.
Allen remarries Carla six years later, and they have a child together a year after they marry. Allen dies seven years after that. Eight years later, Carla dies. This jurisdiction follows the common law Rule Against Perpetuities and the Rule of Convenience. What is the chain of ownership for Blackacre? BONUS: if this jurisdiction follows Shelley's Rule, who would get Blackacre?
Allen has a life estate in Blackacre. Upon his death, his interest transferred to his widow, Carla. Carla then had a life estate in Blackacre. Upon Carla's death, Allen had three heirs: his two children with Jane and one with Carla. The Rule Against Perpetuities fails interests that would vest more than 21 years after the validating life ends. Carla had a subsequent life estate, so she became the validating life. Allen's twins were 25 at the time Carla passed, but Allen's child with Carla was only 15. Normally, the Rule Against Perpetuities would divest the twins because the third child's interest would fail the rule ("bad as to one, bad as to all"). However, the Rule of Convenience states that if ascertainable members of a class subject to Rule Against Perpetuities are entitled to immediate possession, those class members get the estate, and anyone not entitled to immediate possession is divested. Since the twins reached 25 upon Carla's death, they were entitled to immediate possession. Subject to the Rule of Convenience, the third child's interest was divested, and only the twins own Blackacre as tenants in common.
BONUS: Shelley's Rule precludes a grantor from leaving an estate to a grantee and their heirs broadly. Under the rule, the grantee and their heirs' interests merge into one, and the grantee generally takes the estate in fee simple absolute. Here, that would mean that Allen's heirs are divested of their future interest, and Allen's life estate would convert to fee simple absolute subject to Carla's life estate.
Archibald is employed as a rodeo clown. Every year, he uses a t-shirt gun to fire shirts into the crowd between events. Archibald took his t-shirt gun to the appropriate t-shirt gun servicer at the start of the rodeo season this year. The servicer gave him the all-clear, and Archibald used the gun at the first rodeo. The gun malfunctioned and shot a t-shirt out with too much force, breaking a crowdgoer's nose. The crowdgoer brought a negligence claim against the rodeo and Archibald. Are the rodeo and/or Archibald liable for the broken nose?
No, neither is liable for the injury. A principal is not vicariously liable for actions that the agent wouldn't be held liable for. Here, Archibald acted with reasonable care by getting his t-shirt gun serviced and using it when he received the all-clear from the servicer. Since he used reasonable care, Archibald could not be found negligent for the misfiring and subsequent injury. Since Archibald couldn't be held liable, neither can the rodeo.