Legal Personality Flashcards
What are examples of rights available over common land?
- Right to dance around the maypole
- Right to gather firewood
- Right to graze sheep
What is fragmentation of title?
The way in which ‘ownership’ of a piece of land may actually by held by a number of people - each in their own different capacity (freeholder, tenant, mortgagee)
What are examples of lawful restrictions upon use of your land
- A restrictive covenant in your title documents that says you’re not allowed to build on the land
- A letter from the local planning authority warning you that you need planning permission to carry out your planned works
- A public right of way running through a proposed construction site
What does PFI stand for?
Private Finance Initiative
Name three distinct legal identities
- Corporations set up by royal charter
- A limited company
- Human beings
Name three forms of legal personalities
- Limited Partnerships (LLP)
- Limited Companies (Ltd)
- Public Limited Companies (PLC)
Someone who takes all profits from their business is known as what?
A sole trader
If two or more people are running a business together (2+ owners) and they don’t set up a particular legal structure, what form does it take by default?
Partnership
What is the name of the government agency that manages information about companies?
Companies House
Where does a trust arise?
When a person gives legal ownership of an asset to someone, and asks them to look after that asset on behalf of a beneficiary
Name three forms of joint venture
- Special purpose vehicle (SPV)
- An agreement by two companies to jointly pursue a particular business objective
- A partnership set up by two companies to jointly pursue a particular business objective
Why is it increasingly common to find higher value commercial real estate owned by SPV’s rather than directly by the developer?
It is cheaper to sell a company that owns a building than to sell the building directly
What is vicarious liability?
Where someone is held liable for the actions or omissions of someone else because of an explicit or implicit understanding that one will take responsibility for the other’s actions
Why would you sue a company rather than an individual if an employee crashes into you in a work vehicle?
Company will have more money - they are vicariously liable as they likely owe a duty of care to third parties to train their drivers properly
What principles could lead to owners having liability for contractor’s actions or errors?
- Ratify their wrongdoing by telling them you’re happy with the defective work and don’t want it correcting
- If you selected the contractor negligently and they were clearly not suitable for the work
- If you have a complex site and failed to give clear and adequate instructions to the contractor
