Restraints on Alienation Flashcards
What are the types of restraints on Alienation?
1) Disabling
2) forfeiture
3) promissory
What is a disabling restraints?
Attempted transfers are ineffective
What type of restraints is void as to any legal interest?
Disabling
What do partial restraints seek to restrict?
Transfer to specific persons
2) Transfer by a specific method
3) transfers until a specified time
What is a forfeiture restraint?
An attempted transfer forfeits the interest
What is a prommisory restraint?
An attempted transfer voids the covenant.
When are forfeiture or promissory restraints possibly upheld?
1) limited time
2) reasonable purpose
What bars discriminatory restraint?
14th amendment against discriminatory state action
What restraints on a life estate are valid?
1) forfeiture
2) promissory
What is an example of an equitable interest?
Spend thrift clause in a trust instrument
What type of restraints does not trigger the Rule against restraints on Alienation?
Restraints on the alienation of equitable interests
What are other acceptable restraints on alienation?
Reasonable restrictions in commercial trans
2) Reasonable options/right of first refusal
3) Restrictions on assignment/sublease
