GBL Exam 2 Review GuideChapter 6, PropertyChapter 7, Intellectual PropertyChapter 8, ContractsGBL Exam 2 Review GuideChapter 6, Property Property Our legally protected right and interest I anything of value that is subject to ownership (net worth)- Real Property - Personal Property (personalty/chattel)- tangible and intangible Bailments A temporary transfer in possession and control of personal property. Possession transfers, but title does not. Transfers include:- Shipping goods (FedEx man does not own package)- Lending out or renting objects (lend roommate car/ valeting a car)- Giving clothing to the dry cleaner Bailor Owner of transferring possession. Must: care for the property, prevent damage, return property in agreed upon condition Fungible goods goods that are indistinguishable (ex/ sugar, doesn’t need to be the same sugar, just the same amount)Bailee Person receiving the property. May: use the property per terms of the agreement (respect limits), use is limited to necessity if agreement does not address usedBailee’s liability for damage:- If the bailment benefits only the bailor, bailee is liable only for gross neglect (ex/ leaving the garage open)- If the bailment benefits on the bailee, bailee is liable even for slight negligence (ex/ if you drive bailors car, you cannot scratch it up)- If the bailment benefits the bailor and bailee, bailee is liable only lack of reasonable care (ex/ storing boats in public warehouse- bailor benefits by getting boat out of water, bailee benefits because they are getting paid)Real Property Real estate/ Realty - Surface- Airspace (above land to the stars)- Subsurface (beneath land to core of earth)- Structures- Fixtures- personal property turned into real property by becoming attached to real property ( ex/ lumber made into fence)Fixtures - When real property is sold the buyer takes possession of the real property and the seller retains the personal property (should have written agreement)- When real property is leased the landlord retains the real property and tenant takes the personal property - EXCEPTION: Trade fixtures a business that has installed fixtures during its lease (treated like personal propertyDefinitions Testamentary Gift Giving any type of property through willBequeath Give personal property in you willDevise Give real property in you willGrantor Giver/ seller of land1GBL Exam 2 Review GuideGrantee Person who receives the land Reversion if given back to grantor Remandorman If given to new owner Possessory Interests In Land Freehold Estate can posses the land and exclude all others Free simple absolute most common, owner has more rights in his land that any other type of owner (can convey, can mine, can give, can improve), can control who owns that land after he dies - Fee Simple Defeasible Qualification- grantor attaches condition to his gift of land. As long as grantee meets condition then they get to keep the land (ex/ observatory at Griffith park (largest municipal park), must be free to the public because of grantors wishes)- Life Estate Cannot devise the land, will own the land until life of tenant ends, then give to grantee by grantor - Concurrent o Joint Tenancy Freedom to sell one’s interest without permission of others, creditors can take debtor’s interests, owners cannot leave their interests to heirs, owners must have equal interests o Tenants in Common Freedom to sell one’s interest, creditors can take debtor’s interest, owner can leave their interest to heirs, owners may have unequal interests o Tenancy by the entirety Permission required to sell one’s interest (cannot sell w/o co-owner permission), creditors of only one debtor cannot attach any interest, owner cannot dispose of his interest by will, co-owners must be married, divorce converts ownership to tenancy in common Sublease Transfer less that entire time remaining on lease Assignment Transferring the remainder of the time in lease Leasehold estates - Tenancy for years any fixed period of time - Periodic tenancy Automatically renewable for the original lease terms (ex/ year lease renews every 6 months), continues unless either party gives notice before end of next term - Tenancy at Will Either party can say ‘I am moving out tomorrow’, give notice to either party whenever,no end date, goes on till someone wants out- Tenancy at sufferance Tenant stays on property after lease ends, against wishers of land lord  illegal!Non-Possessory Interests In LandProfits Right to enter another’s land and take something from itLicenses Right to enter land, but cannot remove anything (granted automatically when business opens its doors)Easements The right to use another persons landDominant tenement- land owned by user (benefits from used of other land)Servient tenement- land being used (burdened by someone else using the land)Appurtenant- benefits adjacent land- In Gross adjacency not required (ex/ gas companies own the right to put gas lines underneath homes—Tyron Township transportation of fuel) Seller of service makes money, and houses benefit because they need the service 2GBL Exam 2 Review Guide- Positive Easements allows use of land, benefits easement owners land and sometimes heightens the value of dominant tenement - Easement By Necessity when the easement is absolutely necessary for reasonable use of the property - Negative Easements prevents land owners from using their own land in a certain way (ex/ Hollywood sign, solar panels- cannot build a building above a certain height)Creation of EasementsExpress Grant & Express Reservation- Granted and reserved rights are stated in the deed that transfers property ownership- Typically created when there is a sale of landEasement by Prescription Must have these 5 requirements (over a 15 yr period in MI): 1. Use the land of another2. Use the land openly and notoriously (not in dark)3. Use the land continuously (on a regular basis, same route)4. Use the land exclusively5. Use the land in a adverse and hostile manner (against the wisher and interests of the land owner)Extinguishing the Easement When the land of dominant tenant is no longer land locked Loss Of PossessionAdverse Possession Same requirements as prescriptive easements, but must occupy another’s land—actual title transfers to person acquiring land Condemnation The government has constitutional power to take privately owned land, must provide fair compensation for the owner and have public purpose for land (road, park,