BUL3330 Study Guide Test 3 UNIT 9 Chapter 48 Property is a legally protected interest or group of interests It is valuable only because our law provides that certain consequences follow from the ownership of it The right to use property to sell it and to control to whom it shall pass on the death of the owner is all included within the term property A forty acre farm a chair and a household pet are tangible property Each of these are physical objects Intangible property in contrast does not exist in a physical form For example the rights represented by a stock certificate a promissory note and a deed granting Jones a right of way over Smith s land are intangible property o Patent 17 years from issue date takes 3 years to be issued o Copyright life of author plus 70 years The most significant practical distinction between types of property is the classification into real and personal property A fixture is an article or piece of property that was formerly treated as personal property but has been attached in such a manner to land or a building that it is now designated as real property even though it retains its original identity For example building materials are clearly personal property however when worked into a building as its construction progresses such materials become real property as buildings are a part of the land they occupy On the other hand property that has been affixed so as to become a fixture an actual part of the real estate becomes the property of the real estate owner The following factors are relevant in determining whether any particular item is a fixture o 1 The physical relationship of the item to the land or building o 2 The intention of the person who attached the item to the land or building o 3 The purpose the item serves in relation to the land or building and in relation to the person who brought it there and o 4 The interest of that person in the land or building at the time of the item s attachment TRANSFER OF TITLE TO PERSONAL PROPERTY BY SALE A sale of tangible personal property goods is transfer of title to specified existing goods for a consideration known as the price Title passes when the parties intend it to pass and transfer of possession is not required for a transfer of title Sales of intangible personal property also involve transfer of title Many of these sales also governed by UCC provisions while some such as sales of copyrights and patents are governed by specialized Federal legislation A gift is a transfer of title to property from one person to another without consideration 3 elements of a gift delivery intent acceptance Gifts may be either inter vivos or causa mortis An inter vivos gift is a gift made by a donor during her lifetime A gift causa mortis is a gift made by a donor in contemplation of her imminent death A gift causa mortis is a conditional gift contingent upon 1 the donor s death as she anticipated 2 the donor s not revoking the gift prior to her death and 3 the one s surviving the donor Accession means the right of the owner of property to any increase in it whether natural or human made For example the owner of a cow acquires title by accession to any calves born to that cow Confusion arises when identical goods belonging to different people become so mixed that the owners cannot identify their own property For example Hereford cattle belonging to Benton become mixed with Hereford cattle belonging to Armstrong and neither can specifically identify his herd as a result Mislaid Lost Property If the property has been intentionally property A finder is entitled to lost unintentionally left property against everyone except the true owner intentionally disposed of a finder is entitled to the abandoned A different rule applies when the lost property is in the ground ex money falling out of pocket Here the owner of the land has a claim superior to that of the finder If property is intentionally placed somewhere by the owner who then unintentionally leaves it it becomes mislaid property forgotten umbrella on bus Most courts hold that if property has been mislaid not lost then the owner of the premises not the finder has first claim if the true owner is not discovered Another category of property is the treasure trove which consists of coins or currency concealed by the owner To be classified as treasure trove the property must have been hidden or concealed for such a length of time that the owner is probably dead or undiscoverable Treasure trove belongs to the finder as against all but the true owner buried money Insurance is a contractual undertaking by the insurer to pay a sum of money or give something of value to the insured or a beneficiary upon the happening of a contingency or fortuitous event that is beyond the control of the contracting parties Through insurance a business can safeguard its tangible assets against almost any form of damage or destruction Insurance may also protect a business from tort liability including assertions involving strict liability negligence or the intentional acts of its representatives Fire and property insurance protects the owner of real or personal property against loss resulting from damage to or destruction of the property by fire and certain related perils Most fire insurance policies also cover damage caused by lightning explosion earthquake water wind rain collision and riot A friendly fire is one contained in its intended location for instance a fire in a fireplace furnace or stove A hostile fire is any other fire all fires outside their intended or usual locales Thus a friendly fire becomes hostile if it escapes from its usual confines Types of Policies Valued Policy covers full value of property as agreed upon by the parties at the time the policy is issued Open Policy covers fair market value of property as calculated immediately prior to the loss An insurable interest is a relationship a person has with respect to certain property such that the happening of a possible specific damage causing contingency would result in direct loss or injury to her The insurable interest must exist at the time the property loss occurs although some courts speak in terms of having the insurable interest at the time of insuring and at the time of loss The purpose of insurance is protection against the risk of loss that would result from such a happening not the realization of gain or profit Chapter 49 Freehold estate right of ownership of real property for an indefinite time or for the life