Business Law Midterm

Fixture

when personal property is attached to real property

Easement

The right to use another's land for a particular purpose (AKA "the right of way"

Dominant tenement

The one who enjoys the easement and to whom it attaches (the property that benefits from easement)

Servient tenement

The one on whom the easement is imposed (owner-the property who bears the burden of the easement)

Life Estate

a person who owns real property for life or for the life of another owns an interest in real property

Joint tenants

the estate created is a single estate with multiple ownership

Bargain-And-Sale Deed

One that transfers title to property but contains no warranties

Quitclaim deed

One that transfers to the buyer only the interest that the seller may have in a property

General warranty deed

a deed that contains express warranties under which the grantor guarantees the property to be free of encumbrances created by the grantor or by others who had title previously

Lease

the agreement that gives rise to the landlord-tenant relationship

reversed

changing the way we apply the law

Remanded

to send a case back to the judge

Trade fixtures

Those items of personal property brought upon the premises by the tenant that are necessary to carry on the trade or business to which premises will be devoted

Eminent domain

the right of government to take private property for public use (aka condemnation)

Preemption

the process by which the courts decide that a federal statute must take precedence over a state statute

Statutes

laws passed by legislatures

precedent

Model case that a court can follow when facing a similiar situation

Binding Precedent

precedent that a court must follow

Persuasive Precedent

precedent that a court is free to follow or ignore

Severalty

Only one person owns a tract of real estate

Grantor

The person transferring title

Grantee

The person to whom the title is transferred

Constructive Eviction

when the tenant is deprived of something of a substantial nature that was callled for under the lease

Habitability

The premises are fit for human habitation

Contract

An agreement between two or more competent parties, based on mutual promises, to do or refrain from doing some particular thing that is neither illegal nor impossible

Mitigation

Reducing the severity of something (keeping damages to a minimum)

Unconscionability

a court may refuse to enforce an unconscionable contract or any part of a contract found to be unconscionable (deal is so bad that the court wont rule it)

illusory promise

a promise or contract that appears to be legally binding but is actually not enforceable because it doesn't impose a real obligation on one party (a promise that is unenforceable, likely to mislead)

duress

compulsion by threat (threat of some kind)

Undue Influence

occurs when one party to a contract is in a position of trust and wrongfully dominates the other party (someone has power over someone else in a situation where they are dependent on you)

Options Contract

a type of agreement in which one party (the option holder) has the right (but not the obligation) to buy or sell something at a set price within a specific time period (a way to give yourself options in the future legally)

Strict Liability

The legal responsibility for damage or injury even if you are not negligent

Premise Liability

Refers to the legal responsibility a property owner or organization owes to persons or individuals on the property. Property owners have a legal duty to maintain the property in a reasonably safe condition.

Punitive Damages

Designed to punish the wrongdoer for his or her outrageous conduct

Statute of Frauds

Certain contracts must be in writing to be enforceable.

Mutual Assent

the parties to a contract must manifest by words or conduct that they have agreed to enter into a contract (Both parties agree to the same terms -offer/acceptance)

Consideration

The mutual promise to exchange benefits and sacrifices between the parties

Capacity

the legal ability to enter a contract (usually involves minors)

Legality

If it is not legal, the court wont get involved (The contract's purpose must be to accomplish some goal that is legal and not against public policy. )

Voidable Contract

One that may be avoided or canceled by one of the parties

Unenforceable contract

One that, because of some rule of law, cannot be upheld by a court of law

Valid Contract

Legally binding and fully enforceable by the court

Void contract

One that has no legal effects whatsoever

Express contract

Requires some sort of written or spoken expression indicating a desire to enter the contractual relationship

Implied Contract

Created by the actions or gestures of the parties involved in the transaction

Executory contract

A contract that has not yet been fully performed by the parties

Executed Contract

When a contract’s terms have been completely and satsifactorly carried out by both parties

Option

The giving of consideration to support an offeror’s promise to hold open an offer for a stated or a reasonable length of time

Pre-existing duties

A promise to do something that one is already obligated to do by law or by some other promise or agreement cannot be made consideration in a new contract

Legal detriment

Giving up a right that you have (consideration)

Meeting ot the minds

(Mutual Assent) when two or more people agree on the same thing in a contract or agreement