TIME/Breach/financing

Question 1

a breach is MATERIAL if

Answer 1

breach goes to the essence of the contract

Question 2

Material breach entitles injured party to…..

Answer 2

damages and

excuses the injured party from having to perform obligations

Question 3

A non-material breach entitles injured party to…

Answer 3

damages BUT

must still perform his obligations

Question 4

how to transform a non-material to a material term

Answer 4

make TIME of the essence

Question 5

the non-breaching party is entitle to damages for ______breach of contract that causes an injury.

Answer 5

EVERY

Question 6

the time of performance will NOT be material when

Answer 6

time is not of the essence

*each party has reas. period of time after deadline to perform before breach becomes material

Question 7

must the non-breaching party still perform when time is not of the essence

Answer 7

yes

&the breaching party will still owe damages

Question 8

Which party can make time of the essence AFTER the execution of a K?

Answer 8

Either party!

must be reas & inform the other party that on-time perf. is expected

Question 9

Why is TIme of essence clause a two-edged sword

?

Answer 9

either party can get out

ex. flat tire can result in breach

Question 10

mortgage

Answer 10

the conveyance of land to secure payment of a debt

Question 11

law day

Answer 11

date on which the final payment of the morgage is due

Question 12

mortgagor

Answer 12

party obtaining financing

Question 13

mortgagee

Answer 13

party providing the money

Question 14

estate type

Answer 14

the morgagee receives a defeasible fee estate (mortgage is phrases as a fee simple determinable

Question 15

default

Answer 15

a failure by the morgagor to pay the mortgages on the law day

Question 16

historic effect of a default

Answer 16

all the morgagor’s interest in land was extinguished

Question 17

modern effect of a default

Answer 17

initiates the “equity of redemption.”

Question 18

equity of redemption

Answer 18

the right of the mortgagor to pay off the debt after default to recover the property.

Question 19

waiver of equitable redemption

Answer 19

an agreement by the mortgagor to surrender the equity in advance (any such waiver is void)

Question 20

Foreclosure

Answer 20

a termination of the equity of redemption

Question 21

types of foreclosure

Answer 21

1. judicial or 2. Private Power

Question 22

types of judicial foreclosure

Answer 22

by sale- decree ordering sale of the property w/ the proceeds used first to satisfy thet morgages and if a balance remains, the mortgagor
strict- a decree giving the mortgagee full title and extinguishing the debt

Question 23

private power foreclosure

Answer 23

the authority given in the mortgage for the mortgagee to sell the property at auction w/out judicial action

Question 24

mortgage note

Answer 24

a promissory note executed at the time the mortgage is given

Question 25

what provides the obligation that the mortgage secures

Answer 25

the mortgage note

Question 26

what makes the mortgagor individually responsible for repaying the amount borrowed

Answer 26

the mortgage note

Question 27

can the balance be PREPAID?

Answer 27

no. unless the mortgage specifically authorizes it

today most all jsuris dont auth it

Question 28

Marketable title is

Answer 28

“readily subject to resale and free from reasonable doubt.”

Question 29

what is marketable title NOT (better approach)

Answer 29

refer to standards of the bar or avoid all together and subsitute insurable title

Question 30

What can purchaser do to address a title problem

Answer 30

1. walk away from deal and seek damages
2. accept defective title and bring action to quiet title hoping that defect can be cured
3. put the deal ON HOLD and allow the SELLER to bring the quiet title action

Question 31

is unmarketable title bad title?

Answer 31

no, not same

Question 32

a utility easement

Answer 32

defective title, but still marketable

Question 33

Title by adverse possession is “good” but ……

Answer 33

NOT marketable (until confirmed by a court judgment)