September 2020 Bar Exam Flashcards
Real Property
According to the Doctrine of Mutual Mistake
A court may give relief where there has been an innocent omission or insertion of a material stipulation, contrary to the intention of both parties.
Example of the application of the Doctrine of Mutual Mistake.
the parties agreed in writing that Owen would pay his share of the probated real estate taxes as of the closing date
Unintentional oversight.
Under the Merger Doctrine, a previous contract is extinguished by an instrument of higher quality which is the deed.
However, the doctrine of merger only applies to subject matter specifcially covered by the deed. It does not apply to provisions that are collateral to the passage of time.
A closing Statement does not extinguish a purchase contract.
Requirements of a Valid Deed.
- It must meet certain formalities
- It must be delivered by the grantor
- and be accepted by the grantee.
Delivery requirement for a valid deed.
It can be delivered by a number of means. Including manual delivery,
failure to record does not invalide a deed.
Once delivery occurs, the title passes to the grantee
Warranties that are encompassed by the English Covenant of titles
These mean that the deed is conveyed in Fee Sample.
Expression of the grantor of those covenants.
the lit of warranties that are encompassed by the English Covenant of Titles
- covenant of the right to convey
- Covenant of quiet possession
- Covenant of free from encumbrances
- covenant of further assurances
- Covenant of no act to encumber.
Covenant of Quiet Possession
a promise that the grantee will hold the property free from any interruption of demand by anybody
Covenant free from Encumbrances
A legal promise by the seller to the buyer that the property is free from any liens or other claims.
What is an encumbrance
the existence of physical intrusions or encroachments or superior title or interest in the land held by another party
Lawful zoning ordinances are not?
Encumbrances
The Present Estates
Covenant of Seisen - that the grantor owns the property
Covennat of right to convey - that the Grantor can transfer the property
Covenant against Encumbrances - that there are no servitudes or liens on the property
The Future Covenants
The Covenant of Quiet Possession - Grantor promises that the Grantee will enjoy possession of the property free from any lawful claims by third parties
The Covenant of Warranty - the Grantor promises to defend against any reasonable claims of title by a third party and to compensate the Grantee for any loss sustained by the claim of superior title.
The Covenant for Further Assurances - the Grantor promises to do whatever is needed to perfect the grantee title, if it turns out to be imperfect.
The Quiet Claim Deed
No covenants
General Warranty Deed
It warrants againt all defects in title, including those attributes to the Grantor’s predecessors
Special Warranty Deed
Same Covenants but the grantor only makes the promises on behalf of himself
In regard to Judgment liens in connection of a breach of a covenant free of encumbrances, it is generally accepted that
as long as the judgment wasn’t enforced, no actual damages are incurred by the buyer unless he discharges teh lien or suffers damages as a result of the judgment creditor’s enforcement of the lien.
Thus a grantor would only become liable to the grantee if the Grantee suffers actual damages from the enforcement of the lien or voluntary satisfaction.
lawful Execution of a Deed
- A writing signed by the grantor
- an unambigious discreption of the property
- identification of the parties by name or description
- word of intent to transfer
The sale of all the assets of the corporation is a what?
A fundamental corporate change that needs the approval of the shareholders under a number of formalities.
A exception to the formalities of the approval of a fundamental corporate change is the approval of all the shareholders.
All the Shareholders.
The approval of the shareholders is required for Fundamental Corporate Changes
It isn’t required for nonfundamental Corporate changes
If the purchasing of the assets of another corporation a fundamental corporate change?
No, it is not, thus it only need the approval of the board of directors.
What duties does a director owe to the corporation?
They owe fiduciary duties of loyalty and care.
What does the Good Faith Judgment Rule do?
It protects the director from liabilty for business decisions made in good faith and that a reasonably prudent person would have done in the similar situation with the belief that the director is acting in the best interest of the corporation.
Under this standard, a court will uphold the decisions of a director as long as they are made (1) in good faith, (2) with the care that a reasonably prudent person would use, and (3) with the reasonable belief that the director is acting in the best interests of the corporation.
Example of failing to exercise their good faith business judgment
by not doing any due diligence. Not sufficient to rely on the assertions of a biased seller.
Approve of interested transfers involving interested directors.
Approval by a majority of disinterested directors who were informed of all the material facts.
A quorum. the presence of even a vote by the director with a conflicting interest in a given transfaction doesn’t affect the validity of the action.
VA Civil Procedure
The circuit court has board discretion in determining whether to grant leave to a party to file a late pleading. As long as there is Good Cause.
This is a Good cause standard and should be liberally granted.
No intent to delay, or obstruct, or prejudice to Paige.
Examples of Good Cause
- The extent and reason for the delay and prejudice to the opposing party caused by the delay.
(b)Relief from Default. - Prior to the entry of judgment, for good cause shown the court may grant leave to a defendant who is in default to file a late responsive pleading. Relief from default may be conditioned by the court upon such defendant reimbursing any extra costs and fees, including attorney fees, incurred by the plaintiff solely as a result of the delay in the filing of a responsive pleading by the defendant.
https://casetext.com/rule/virginia-court-rules/virginia-rules-of-supreme-court/part-three-practice-and-procedures-in-civil-actions/rule-319-default
After the entry of a default judgment, is the defaulting party entitled to offer proof or argument on the issue of liabilty or evidence of damages?
The defaulting party, after a default, isn’t entitled to offer proof are argument on the issues of liability, he was entitled to object to evidence concerning damages.