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38 Cards in this Set
- Front
- Back
What is an assignment?
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T transfers everything, holding nothing back!
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What is a sublease?
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T transfers a portion of the lease period, holding some time back.
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ASSIGNMENTS
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Intro Card
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Situation One: Landlord sues tenant
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Are successive tenants on a lease liable to the landlord?
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A lease is considered two things, what are they?
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a lease is both a CONVEYANCE and a CONTRACT, and these are separate and independent grounds of liability.
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Where does liability on the conveyance come from?
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Privity of estate.
Ask: is there POE btw L and whichever T is being asked about? If yes, liability on conveyance. |
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Liability on the contract comes from where?
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Privity of contract.
Ask: Is there POC between L and whichever T is being asked about? |
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What if there is only POE or POC, not both?
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T is liable to L-- there's no need for both.
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Privity of estate exists only between whom?
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The present L and the present T!
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Privity of contract exists between whom?
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Exists where there is an agreement between the parties, or where assignee 'expressly assumes' the obligations under the lease.
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In addition to rent, what other covenants might there be?
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Other covenants will run with the land IF they TOUCH and CONCERN the land.
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What the "Touch & Concern" test?
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If performance of the covenant makes the land more valuable or more useful, then it meets the T&C test and runs with the land. (such as a promise to fix the fence, that will T&C the land).
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Situation Two: Tenant sues Landlord
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If L sells to a successor landlord, can T sue the original landlord and any successor landlord on the lease?
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Will the original landlord continue to be liable to T?
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Yes, b/c of privity of contract.
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Is successor landlord also liable?
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Yes, as long as the lease covenant runs with the land AND there is either privity of contract or privity of estate.
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SUBLEASES
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Intro Card
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Is a sublessee liable to L for?
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No, b/c no POC or POE (because the sublessOR is deemed to have kept the estate).
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What if a clause says "T may not assign or sublet without L's permission"? Is it valid and enforceable?
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Yes, even though it's a restraint on alienation.
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What if there's a violation of the non-assignment or non-sublease clause?
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Then the attempted transfer is merely VOIDABLE at the option of L. If L does nothing, nothing happens.
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What is the effect of L's giving permission for an assignment?
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Giving permission ONCE means the clause is then waived for all time, unless L states otherwise at the time of giving permission.
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What if L accepts rent by the assignee or sublessee?
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Then that gives permission for a transfer.
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CONDEMNATION (EMINENT DOMAIN)
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Intro Card
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If the State takes property under a lease by its power of condemnation, what are the two questions to ask?
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1. Is T excused from paying rent?
2. Will T share in the condemnation award? To answer, look to see if only part or all of the leased property is taken! |
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What if the condemnation is just a partial taking?
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It doesn't release T from the obligation to pay full rent, but T gets a condemnation award equal to the rent that will have to be paid over the remainder of the lease for the property taken.
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What if the condemnation is a full taking?
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The lease will extinguish, and T is excused from paying rent.
T shares in the condemnation award only to the extent that the fair rental value of the lease exceeds the rent due under the lease. |
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LANDLORD'S TORT LIABILITY
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Intro card
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What is the general rule on tort liability for the landlord?
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No duty of Landlord to T or to T's invitees for injuries on the premises during the life of the lease.
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What are the 5 exceptions to the general rule on L's tort liability?
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1. Latent defects
2. Short term lease of a furnished dwelling 3. Common areas under landlord's control 4. Negligent repairs 5. Public use exception |
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Latent defects rule?
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L is under a duty to disclose latent defects which L either knows or has reason to know of.
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What does T need to know about the defect?
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T does not know of the defect, and a reasonable person in T's position would not discover it.
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Does L have to repair the latent defect?
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No, L must only disclose it.
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Rule for Short Term lease of a furnished dwelling?
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L is liable for defects even if L neither knows nor has reason to know of them.
A short term = 3 mos or less. |
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Common areas under landlord's control?
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If injury is in an area subject to L's control, then L is liable if L failed to use reasonable care.
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Negligent repairs?
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L is liable for injury resulting from L's repair of a defect in the premises, even if L used all due care in making the repair! (L creates the deceptive appearance of safety, for which L is liable).
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Public use exception?
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L is liable for injury from defects in the premises, if 3 conditions are satisfied.
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What are the 3 exceptions?
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1. L must know or should know of major defects, AND
2. L must know or should know that T will not fix the defect, AND 3. L must know or should know the public will be using the premises. |
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TENANT'S TORT LIABILITY
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Intro Card
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What is always true of T's tort liability?
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T is always liable to third party invitees for negligent failure to correct dangerous conditions on the premises, regardless of whether L may be contractually liable or not.
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