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Code III Exam > Sales & Leases > Flashcards

Sales & Leases Flashcards

1
Q

A transferor who transfers whatever rights he has in property without making a warranty regarding those rights has

A

assigned his rights, but has not sold a corporeal immovable.

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2
Q

Assignments are effective against debtors and third persons from what time?

A

the time they have actual knowledge or are given notice of the assignment.

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3
Q

If the seller over delivers by more than 10%

A

the buyer is permitted to keep the overage as a penalty.

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4
Q

If a sale is rescinded for lesion, the seller takes the thing back in what condition?

A

in the condition it is in at the time of the action of recision.

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5
Q

As a general rule, the risk of loss of a thing being sold due to fortuitous events transfers from the seller to the buyer upon

A

delivery to the buyer.

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6
Q

Can a lease term can expire on the occurrence of an event?

A

yes.

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7
Q

A lease term is prohibited by law from exceeding

A

99 years. If a lease term exceeds 99 years, the term will be reduced by operation of law, but the lease will not be deemed invalid.

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8
Q

What is the last day on which a lessee can validly terminate a three-week lease?

A

Five days before the end of the lease period.

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9
Q

An option is a contract whereby the parties agree that

A

the offeror is bound by his offer for a specified period of time and that the offeree may accept within that time. Such an agreement is separate from a lease of property.

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10
Q

The lessor warrants to the lessee that the thing is suitable for the purpose for which it was leased and is free of vices or defects that prevent its use for that purpose. Under the Code, a warranty may be disclaimed only if

A

waived by clear and unambiguous language brought to lessee’s attention. Further, any attempt to disclaim warranties affecting health or safety is ineffective in residential leases.

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11
Q

A sale is a contract where

A

person transfers ownership of a THING to another for a price in MONEY.

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12
Q

Requirements for the perfection of a sale

A

(1) Thing
(2) Price
(3) Consent of the parties

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13
Q

Is the transaction a sale?

A

(generally do not bifurcate) ask, what is the primary obligation? What is the predominant element of the sale, the thing or the services? Is the cost of the service component or is it “trifling”?

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14
Q

Litigious rights

A

Officers of the court (judges, attorneys, clerks, officers) cannot purchase litigious rights under contestation in the jurisdiction of the court, and any such purchase by such an officer is null. You cannot buy rights to things currently subject to litigation in the jurisdiction in which s/he serves

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15
Q

Future things, or things not yet in existence, can be sold. The existence of the thing is a condition that

A

suspends the effects of the sale.

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16
Q

A hope, or a thing that may materialize, can be sold

A

Buyer assumes the risk that the thing may not materialize.

EXAMPLE: A fisherman may sell a haul of his net before he throws it. Buyer is entitled to whatever is caught in the net, and even if nothing is caught the sale is valid.

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17
Q

Parties must fix a price that is certain or determinable through an agreed upon method

A

Parties can select a third person to determine the price. If the third person is unable or unwilling to make a determination, a court may set the price.

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18
Q

If the thing is (1) movable, (2) of a kind that seller habitually sells, and (3) parties cannot agree on price, the price is:

A

a reasonable price at the time and place of delivery

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19
Q

Lesionary price

A

is an unjust price; the sale cannot be affected by a vice of consent called lesion. Limited to corporal immovables. When the price paid is less than 1/2 the fair market value of the thing. Only the seller can bring action; the buyer can either rescind the sale, or pay a supplement.

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20
Q

Auxiliary terms, immovables

A

the offer and acceptance must be mirror images of one another, including the auxiliary terms

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21
Q

auxiliary terms, movables

A

no need to have mirror images, so long as the price and the object to be sold are mirror images. No more “last shot” rule.

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22
Q

auxiliary terms for the sale of a movable are considered

A

proposals, unless the form says the acceptance of the additional terms is a condition of sale

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23
Q

auxiliary terms for the sale of a movable for non-merchants, if they’ve acted as though there was a sale

A

just fill in where the aux terms were with the standard provisions in the Civil Code

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24
Q

auxiliary terms for the sale of a movable for merchants

A

additional terms become elements of the contract, unless the new terms materially alter the sale

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25
Q

auxiliary terms for the sale of a movable for merchants, the offer expressly limits acceptance to the terms of the offer

A

then the additional terms provided by the other party are not added to the contract

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26
Q

auxiliary terms for the sale of a movable for merchants, if the offeror objects within a reasonable period of time

A

then the additional, objectionable terms provided by the other party are not added to the contract

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27
Q

Form of sale, moveables

A

There is no form requirement for the sale of movables, but delivery is required to affect third parties.

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28
Q

Form of sale, immoveables

A

(1) Sale of immovable property must be in writing.
(a) Exceptions:
1) An oral transfer of immovable property will be recognized as a valid sale if possession of the immovable is actually delivered to the purchaser and the seller acknowledges or confesses that sale under oath.
2) Sometimes, acts under private signature can be enforceable even though they are only signed by one party, provided the other party avails himself of the benefit and has done something to indicate that he wants to take advantage of that or participate in it.
(2) The thing that is the object of the sale needs to be described with some minimally sufficient level of specificity.
(a) If you’re able to eke out with parole evidence what you purchased, the transaction may be enforceable between the parties.
(3) Sale is effective upon perfection, but it is only effective against third persons once it is recorded.
(a) The public records doctrine is a negative doctrine. Failing to record something deprives it of effect.

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29
Q

transfers between parties once there is

A

agreement on the thing and price, regardless of whether price has been paid or delivery has occurred.

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30
Q

Transfer of ownership, Individualization

A

When an item must be individualized from a mass of things of the same kind, ownership transfers when that individualization occurs

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31
Q

When an item is sold by weight, count or measure, ownership transfers when

A

the seller weighs, counts, or measures the item

Lump Sales: When things, such as good or produce, are sold in a lump, there is no requirement of weight, count or measurement. Ownership transfers upon consent of the parties.

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32
Q

If buyer reserves the right to view or try the thing, ownership is not transferred until

A

the trial period ends (sale subject to a suspensive condition)

NOT the same as a right of inspection, which would be an issue of breach of contract – failure to deliver the thing contracted for

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33
Q

transfer of ownership of things in transit

A

using a common carrier, the bill of laiding controls

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34
Q

The risk of loss due to fortuitous events transfers from seller to buyer

A

at the time of delivery

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35
Q

When a contract requires seller to ship through a carrier, but does not require him to deliver the things at any particular destination, the risk of loss is transferred to buyer

A

on delivery of the things to the carrier.

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36
Q

When a contract requires seller to ship through a carrier, and specifies delivery at a particular destination, the risk of loss is transferred to buyer when

A

the things are tendered to buyer at the destination.

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37
Q

When the parties incorporate well-established commercial symbols into their contract, the risk of loss is transferred

A

according to the customary understanding of these symbols.

EXAMPLE: FOB; FAS

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38
Q

Obligations of Seller: Overview

A

a. Deliver the thing
b. Warrant the thing against:
(1) Eviction, and
(2) Redhibitory defects
c. Warrant the thing is fit for its intended use

Seller must clearly express the extent of his contractual obligations; any obscurity or ambiguity is interpreted against seller

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39
Q

seller fails to deliver the thing sold, buyer may:

A

(1) Demand specific performance
(2) Seek dissolution of the sale
(3) Seek damages

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40
Q

(immovables) Delivery takes place upon

A

execution of writing that transfers ownership

If there is a discrepancy between what was supposed to be sold and what is sold, however, seller’s duty will depend on the circumstances

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41
Q

(immovables) Sale by measure

A

occurs when the price is fixed at so much per measure (unit pricing).

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42
Q

(immovables) Sale by measure, under delivery. If seller delivers less than the full amount specified in the contract, the price is

A

proportionately reduced

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43
Q

(immovables) Sale by measure, over delivery.

A

If seller delivers more than the amount specified, buyer must pay seller a proportionate supplement of the price.

However, buyer may recede from the sale when the actual extent of the sale exceeds 5% of what was meant to have been delivered

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44
Q

Sale by lump price

A

occurs when the parties have specified the extent of the premises and agreed on a lump price.

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45
Q

Sale by lump price, Slight Discrepancies

A

There is no price change, and buyer cannot recede from the contract.

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46
Q

Sale by lump price, Over Delivery

A

If seller over delivers by more than 5%, buyer can recede from the contract or pay the increase.

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47
Q

sale by lump price, under delivery

A

If seller fails to deliver by more than 5%, price is reduced accordingly; buyer cannot recede from the contract

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48
Q

Sale per aversion

A

the sale of a certain and limited body or a distinct object.

There is no augmentation or reduction in purchase price if the thing delivered is actually more or less than what was represented in the act of sale.

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49
Q

(movables) Delivery takes place when seller

A

(1) delivers item to buyer, or (2) by another means agreed upon by the parties.

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50
Q

Delivery of incorporeal movable things incorporated into an instrument, such as stocks and bonds, takes place by

A

negotiating the instrument to buyer.

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51
Q

(Movable) cost of making a delivery is borne by

A

seller; the cost of receiving a delivery is borne by buyer, absent another agreement.

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52
Q

(movables) Delivery must be made at

A

the location of the item at the time of sale, absent another agreement

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53
Q

Seller must deliver the thing sold

A

in the same condition as parties expected, or should have expected, it to be in at time of delivery.

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54
Q

Buyer may reject non-conforming goods within

A

a reasonable time, upon giving notice to seller

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55
Q

If buyer does not reject the goods within a reasonable time

A

the goods are deemed accepted

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56
Q

A buyer who accepts non-conforming goods can’t later reject them for nonconformity, unless

A

the acceptance was made with a reasonable belief that the nonconformity would be cured.

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57
Q

After buyer’s rejection of goods, seller can cure non-conformity when

A

(1) time for performance has not expired, or (2) seller had a reasonable belief that the nonconforming things would be acceptable to buyer
(1) Seller must give reasonable notice of his intention to cure to buyer.

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58
Q

Buyer’s Remedies when rejecting goods

A

When seller fails to perform a contract of sale of movable things, buyer may purchase suitable things within a reasonable time and in good faith.
(2) Buyer can recover the difference between the contract price they agreed to and what they had to pay to buy the conforming goods.

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59
Q

Seller’s remedies for breach

A

(1) When buyer fails to perform a contract of sale of movable things, seller may resell those things still in his possession.
(2) Seller can also recover the difference between the contract price and the resale price, along with other damages.

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60
Q

Obligation of Seller: Warranty Against Eviction

A

Eviction is buyer’s loss of, or danger or losing, the whole or part of the thing sold because of a third person’s right that existed at the time of sale.

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61
Q

Seller warrants buyer against

A

(1) Eviction
(2) Encumbrances not declared at time of sale, except:
free from apparent servitudes
free from natural (non-apparent), legal servatudes

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62
Q

Rights and Duties of Buyer

a. Call in Warranty

A

(1) Buyer threatened with eviction must give timely notice of the threat to seller; bringing suit against buyer amounts to notice.
(2) If buyer fails to give such notice, or fails to give it in time for seller to defend himself, buyer forfeits the warranty to the extent seller can show he could have defended suit.

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63
Q

Subrogation

A

Buyer is subrogated to warranty rights of seller against other persons, even when the warranty is excluded.

64
Q

Liability for a breach depends upon

A

the type of sale made

65
Q

is always liable for an eviction caused by

A

his own act; any agreements to the contrary are null. Otherwise, liability depends on the type of sale.

66
Q

If a third person perfects his right after the sale through the negligence of buyer

A

buyer has no claim in warranty.

67
Q

If there is no mention of a warranty, the sale is a

A

warranty sale, which offers the most protection.

68
Q

Warranty against eviction is

A

implied in every sale

69
Q

Warranty against eviction is implied in every sale, but parties may

A

(a) Increase or limit warranty

(b) Agree to exclude warranty; however, seller must return price to buyer if eviction occurs

70
Q

Eviction entitles buyer to

A

(a) Restitution of price
(b) Value of any fruits he had to return to third person
(c) Cost of warranty/eviction lawsuit
(d) Damages, but only if buyer was unaware of the danger of eviction

71
Q

If parties agree to exclude the warranty against eviction, seller must return the price to buyer if eviction occurs, unless

A

(a) It is clear that buyer was aware of the danger of eviction,
(b) Buyer declared that he was buying at his own peril and risk, or
(c) Seller’s obligation of returning the price was expressly excluded

72
Q

Quietclaim is

A

Basically, you’re not sure whether you have any rights to the thing, but you sell whatever rights to the thing you may or may not have. Often used to quiet title.

73
Q

After-Acquired Title

A

(this does not apply to a quiet claim situation) If A sold land that he doesn’t at the time own (but knows he eventually will own) to B and A subsequently acquires ownership to the property, that interest immediately transfers to B.

74
Q

Obligation of Seller: Warranty Against Redhibition

A

a. Seller warrants buyer against redhibitory defects, or vices, in the thing sold.
b. A defect is redhibitory when it meets one of the following criteria:
(1) Defect renders the thing useless, or its use is so inconvenient that it must be presumed that a buyer would not have bought the thing had he known of the defect.
(2) Defect does not render the thing useless, but it diminishes its usefulness or value so much that it is presumed that a buyer would have bought it for a lower price.
c. The warranty against redhibitory defects only covers defects that existed at the time of delivery.
(1) Any defect that appears within three days of delivery is presumed to have existed at the time of delivery

75
Q

The warranty against redhibition does not cover defects that are

A

declared or apparent

76
Q

Seller’s Rights and Responsibilities, good faith

A

Seller who did not know of the defect is only bound to (1) repair, remedy or correct the defect, or (2) return the price to buyer along with interest and expenses

77
Q

Seller’s Rights and Responsibilities, bad faith

A

Seller who (1) knows that the thing has a defect but does not declare it, or (2) declares that the thing has a quality that he knows it does not have, is liable to buyer for:

(1) Return of the price with interest from the time it was paid,
(2) Reimbursement of reasonable expenses of the sale and preservation of the thing, and
(3) Damages and reasonable attorney fees

78
Q

The parties may exclude or limit the warranty against redhibitory defects, but any exclusions or limitations must be

A

(1) clear and unambiguous and (2) brought to the attention of buyer.
EXAMPLE: A thing sold “as is,” is clear and unambiguous, but the language must be brought to the attention of buyer.

79
Q

A seller, who is the manufacturer of the thing, is deemed

A

to know that the thing he sells has a redhibitory defect.

80
Q

If seller knew, or should have known, of the existence of a defect in the thing sold, buyer has

A

1 year from the discovery of the defect

81
Q

If seller did not know of the defect in the thing sold, buyer can bring suit within

A

(1) four years from the day of delivery or
(2) one year from the day the defect was discovered, whichever comes first.
EXCEPTION: If the defect is of residential or commercial immovable property, buyer has only one year from the day of delivery to bring an action for redhibition.

82
Q

Seller warrants that the thing is

A

reasonably fit for its ordinary use

83
Q

Seller warrants that the thing is reasonably fit for its ordinary use. This warranty is limited to ordinary uses of the thing unless

A

a. Buyer has a particular use for the thing,
b. Seller has reason to know buyer’s use or purpose, and
c. Buyer relies on seller’s skill or judgment in selecting the thing.

  1. This is subject to the general ten-year prescriptive period for contracts.
  2. If the seller breaches this obligation, the buyer must rely upon general contractual damages
84
Q

Obligations of Buyer

A

pay the price

accept the thing upon delivery

85
Q

Payment is due at

A

the time and place of delivery unless specified in the contract

86
Q

Seller may refuse to deliver the thing sold until

A

buyer pays for it, unless seller has granted buyer a term for the payment.

87
Q

If buyer fails to pay the price, seller may

A

sue for dissolution of the sale; if promissory notes have been given for the price, the right to dissolve the sale prescribes as well.

88
Q

Immovables: If buyer fails to pay for immovable things

A

court can grant an extension up to 60 days to pay.

89
Q

Movables: If buyer fails to pay for movable things

A

court will not grant buyer an extension of time to pay.

90
Q

Right of Redemption

A

A seller’s reservation, in an act of sale, of the right to take the thing back from the buyer (or to buy it back)

91
Q

Reservation of Right, Immovables, (Right of redemption)

A

(1) Right of redemption may not be reserved for more than ten years.
(2) Right of redemption is effective against third persons when the sale is recorded.

92
Q

Reservation of Right, Movables (Right of redemption)

A

(1) Right of redemption may not be reserved for more than five years.
(2) Right of redemption is effective against a third person that bought the thing with actual knowledge of the existence of the right.

93
Q

Buyer’s Rights, Improvements (Right of redemption)

A

Buyer is entitled to all improvements he made that can be removed when seller exercises the right of redemption; if improvements cannot be removed, buyer is entitled to enhancement of the value of the thing resulting from the improvements.

94
Q

Buyer’s Rights, Fruits (Right of redemption)

A

Buyer is entitled to all fruits and products of a thing sold, including un-gathered fruits and un-harvested crops

95
Q

(Right of redemption) Buyers obligation

A

During the redemption period, buyer must administer the thing sold with the degree of care of a prudent administrator. He is liable to seller for any deterioration of the thing caused by lack of such care.

96
Q

(Right of redemption) Seller’s Rights

A

(1) Seller is entitled to all naturally increases in the thing.
(2) Seller is entitled to recover the thing free of any encumbrances, subject to the rights of third parties

97
Q

(Right of redemption) Seller’s Obligation

A

Seller must reimburse buyer for all expenses of the sale and for the cost of repairs necessary for the preservation of the thing.

98
Q

Time for Redemption

A

The period for redemption is preemptive and runs against all persons, including minors, and cannot be extended by the court.

99
Q

Failure to Exercise Right of Redemption

A

If seller does not exercise right of redemption within time allowed by law, buyer becomes unconditional owner of the thing.

100
Q

Agreements Preparatory to Sale, Options

A

An option is a contract by which one party gives another the right to accept an offer to sell or to buy a thing within a stipulated period of time.

101
Q

An option must set forth

A

thing
price
term of option

102
Q

an option involves immovable property

A

it must be in writing

103
Q

The longest term an option can have if it regards immovable property

A

10 years; unless it is granted in connection with an obligation that involves continuous and periodic performance.

104
Q

Is an option heritable?

A

Yes. It does not expire with the death of one of the parties

105
Q

The acceptance of an option is effective when

A

Its acceptance is effective when it is received by the other party

106
Q

A contract to sell is

A

Agreeing to, at some point in the future, to execute an act of sale for the thing for a set price. it needs to name the thing and the price – if the sale is of an immovable, then the contract must be in writie

107
Q

Earnest Money

A

Earnest money is a sum of money given from a buyer to a seller in connection with an agreement to sell that negates the remedy of specific performance. You forfeit the earnest money, but are able to walk away from the sale.

A sum given by buyer to seller is regarded as a deposit, not earnest money, unless the parties expressly provide otherwise.

108
Q

Remedies if there is a contract to sell, but the sale doesn’t happen

A

Unless earnest money has been paid, either party may demand specific performance or sue for damages and dissolution of the agreement.

109
Q

Right of First Refusal

A

A contract by which one party agrees not to sell a particular thing without first offering it to a particular person.

The right may be enforced through specific performance.

110
Q

Can you change the terms of sale when someone has a right of first refusal?

A

No. Grantor of right can’t sell to a third person without first offering to sell the thing to holder of the right on the same terms or the terms specified when the right was granted.

111
Q

How long does a right of first refusal last when it regards the sale of immoveable property?

A

The right can’t be granted with respect to immovable property for a term longer than ten years, unless it is granted in connection with an obligation that gives rise to continuous and periodic performance.

112
Q

How long does the holder of the right of first refusal have to accept or reject the offer? (moveables and immovables)

A

Holder of right of first refusal has 10 days to accept an offer if the thing is movable, or 30 days if the thing is immovable

113
Q

What happens if the person with the right of first refusal refuses the sale, but no one else buys it thereafter either?

A

If holder of right of first refusal decides not to buy the thing, he retains the right of first refusal unless the grantor concludes a final sale, or contract to sell, with a third person within six months.

114
Q

A lease

A

a contract by which one party arees to give another party use and enjoyment of a thing in return for rent paid

115
Q

Elements of a Lease

A

Thing
Rent
Consent

116
Q

Elements of a Lease, thing

A

possession of basically anything, except for a thing that cannot be used without being destroyed by its use

117
Q

Elements of a Lease, Rent

A

(1) May consist of money, commodities, fruits sufficient to support onerous contract;
(2) Must be certain and determinable through method agreed upon by parties; and
(3) May be fixed by third party.
(a) If agreed-upon method is unworkable or third party is unwilling to fix rent, court may provide method that accords with parties’ intent or may itself fix rent.

118
Q

Elements of a lease, consent

A

Consent of parties as to thing and rent is essential but not necessarily sufficient for there to be a contract.
(1) Lease of thing that does not belong to lessor may still be binding on both parties

119
Q

Form requirements of a lease

A

Valid between parties whether written or oral.

b. Lease of immovable thing is not enforceable against a third party unless recorded

120
Q

Types of leases

A

a. Residential: Thing occupied is a dwelling
b. Agricultural: Thing is a predial estate to be used for agricultural purposes
c. Mineral: Thing is to be used for production of minerals
d. Commercial: Thing is to be used for business or commercial purposes
e. Consumer: Thing is a movable intended for lessee’s personal or familial use outside his trade or profession

121
Q

Terms of a lease, general rule

A

Need not be precise for lease to be valid.

b. May be fixed or indeterminate.
(1) Fixed: Lease terminates on designated date or upon occurrence of designated event.
(2) Indeterminate: All other cases

122
Q

Indefinite term, agricultural lease

A

year to year lease

123
Q

terms of a lease (when indefinite) Any non-agricultural lease of immovable thing or lease of movable thing to be used as residence is

A

month to month

124
Q

Lease of other movable things

A

is day-to-day; if rent is fixed by longer or shorter periods, then one such period, not to exceed one month.

125
Q

Lease with fixed term is reconducted if

A

lessee remains in possession of thing after term ends and neither party has taken action to terminate lease.

126
Q

Period of possession necessary for lease to be reconducted, Agricultural lease

A

30 days

127
Q

Period of possession necessary for lease to be reconducted, Lease term longer than one week

A

One week

128
Q

Period of possession necessary for lease to be reconducted, Lease term of a week or less

A

One day

129
Q

Term of reconducted lease, Agricultural lease

A

year-to-year

130
Q

Term of reconducted lease, Lease term longer than one month

A

month-to-month

131
Q

Term of reconducted lease, Lease term at least one day but less than one month

A

day-to-day

132
Q

Term of reconducted lease, Lease term less than one day

A

for period equal to expired term.

133
Q

Obligations and Rights of Lessor

A 
Deliver the thing
maintain the thing
ensure peaceful possession of the thing
warrant against vices or defects
Security Rights
134
Q

Obligations and Rights of Lessor, Deliver Thing

A

a. Deliver thing at agreed time and in good condition suitable for purpose for which leased.
b. If leased thing is immovable and delivery differs in quantity agreed upon, parties are governed by provisions relating to Sale

135
Q

Obligations and Rights of Lessor, Maintain the Thing

A

a. Make all necessary repairs to maintain thing in condition suitable for purpose for which it was leased, except those repairs for which lessee is responsible.
b. May not make any alterations.
c. Upon demand by lessee, make necessary repairs in reasonable time; if he fails to do so, lessee may have repairs done at reasonable cost and receive immediate reimbursement or deduct cost from rent.
d. Pay all taxes, assessments, and other charges that burden thing, except those arising from lessee’s use of thing

136
Q

Obligations and Rights of Lessor, Ensure Peaceful Possession of Thing

A

a. Prevent disturbance of lessee’s possession of thing by another party asserting ownership or right of possession, including party with access to thing or occupying property adjacent to thing.
b. If lessor fails to take all steps necessary against disturbance as soon as notified, lessee may file appropriate action against person causing disturbance. Lessee may join lessor as party to any action brought against lessee by person asserting right in thing or contesting lessee’s right to possess thing.
c. Lessor not responsible for ensuring peaceful possession against another party that does not claim a right in leased thing; lessee may take action against such a party.

137
Q

Obligations and Rights of Lessor, Warrant Against Vices or Defects

A

Warrant lessee that thing is suitable for purpose for which it was leased and is free of vices or defects that prevent its use for that purpose.

b. Liable regardless of whether he knew of existence of vice or defect or if it arose after delivery of thing; however, not liable if vice or defect is attributable to fault of lessee.
c. Lessee’s damages may be reduced if he knew of vice or defect and failed to inform lessor.

138
Q

The warranty for a lease, Warranty may be waived by clear and unambiguous language brought to lessee’s attention; such waiver ineffective if it

A

the lessor knew of the defect, but the lessee does not (fraud)
waives intentional acts or gross fault over any act that causes a tenant physical injury
waives vices and defects that negatively affect health

139
Q

Security Rights of the Lessor

A

Lessor has a right in any of lessee’s movables found on leased property to satisfy payment of rent and other obligations; if agricultural lease, right extends to goods produced on property.
b. Lessor may seize a movable of a third person found on leased property, unless lessor knows it is not property of lessee.

140
Q

Obligations and Rights of Lessee

A 
pay rent
use thing prudently
return thing in appropriate condition
right to sublease, assign, or encumber
right to improvements
141
Q

Obligations and Rights of Lessee, pay rent

A

Failure to pay rent when due may result in lessor dissolving lease and regaining possession of thing.

142
Q

Obligations and Rights of Lessee, use thing prudently

A

a. Use thing as a prudent administrator would and in accordance with purpose for which it was leased.
b. If lessee uses thing for purpose other than that for which it was leased or in a manner that may cause damage to thing, lessor may enjoin him, dissolve lease, and recover damages.
c. Liable for damage to thing caused by his fault or by a person who, with his consent, is on premises or uses thing; must repair such damage.

143
Q

Obligations and Rights of Lessee, return thing in appropriate condition

A

a. Return thing at end of lease in same condition as it was delivered to him, except for normal wear and tear.
b. Repair any deterioration to thing, beyond normal wear and tear, caused by his fault or by a person who, with his consent, is on premises or uses thing.

144
Q

Obligations and Rights of Lessee, right to sublease, assign, or encumber

A

Can sublease leased thing, or assign or encumber his rights in lease, unless expressly prohibited by lease.

145
Q

Obligations and Rights of Lessee, right to improvements

A

a. May remove all improvements he made to leased thing, as long as he restores thing to its former condition.
b. If lessee does not remove improvements, lessor may:
(1) Appropriate ownership of improvements by reimbursing lessee for cost of improvements or enhanced value of leased thing, whichever is less; or
(2) Demand that lessee remove improvements within a reasonable time and restore leased thing to its former condition.
c. If lessee decides to remove improvements, but then fails to do so, lessor may:
(1) Remove improvements and restore thing to its former condition, at lessee’s expense; or
(2) Upon providing additional notice to lessee via certified mail, appropriate ownership of improvements without reimbursing lessee.

146
Q

Termination of Lease with Fixed Term

A

Terminates upon expiration of term, without need of notice, unless lease is reconducted or extended

147
Q

Termination of Lease with Indeterminate Term

A

a. Terminates by notice given by either party. Notice need not be in writing unless the thing leased is an immovable or used for habitation

148
Q

Termination of lease with indeterminate term, If leased thing is an immovable or is a movable used for residence

A

Terminates by notice given by either party, and notice must be written

149
Q

Notice required to terminate a month-to-month lease

A

10 days before the end of the month

150
Q

notice required to terminate a lease longer than one month

A

30 calendar days before the end of the term

151
Q

Terminates by notice given by either party., but who owes damages?

A

No one.

152
Q

If leased thing is lost, partially destroyed, or expropriated, or its use is otherwise substantially impaired

A

(1) If lessee is not at fault, he may have rent reduced or lease dissolved;
(2) If lessor is at fault, lessee may also demand damages

153
Q

when either lessor or lessee dies, or when a corporate entity party to lease is dissolved, does the lease terminate?

A

No.

154
Q

when leased thing is transferred, unless lessor and lessee otherwise agree, does the lease terminate?

A

No.

155
Q

Lessor is required by law to return a security deposit within

A

one month, minus any normal reasonable deductions that might have to be made for abnormal use and wear and tear of the property

(1) If he does not do so, he can be sued and be responsible for damages and attorney’s fees.
(2) You cannot waive your ability to get the security deposit back.

Code III Exam (5 decks)

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