DUTIES OF A LIFE TENANT-
could lease her interest in the property and retain the rental
proceeds.
-Under
the law of waste, a life tenant is under a duty to refrain from
acts which will diminish the value of the remainder interest, except
for normal depreciation.
As a life tenant, Meg had a duty to Ruth to maintain and preserve
the property and to keep it in repair.
Trade Fixtures
A fixture is an article in the nature of personal property which is so
annexed to the realty that it is regarded as part of the land.
Fixtures and equipment necessary for the operation of a business
which have been attached by the tenant to the real estate are trade
fixtures.
There is a presumption that trade fixtures i stalled by a lessee may
be removed by the lessee during or at the termination of the lease.
Pennsylvania law recognizes implied warranties of habitability and
reasonable workmanship in contracts where builder-vendors sell new
homes to residential purchasers.
builder-vendor impliedly warrants that the home he has built and is
selling is constructed in a reasonably workmanlike manner and that it
is fit for the purpose intended habitation
building contractors defective performance, the cost of repair or
completion is the usual remedy because it provides the aggrieved
party with his expectation recovery and the cost of repair or
completion is normally less than the loss in value.
If, however, the cost of repair is disproportionate to the loss in value
to the injured party, then the loss in value is the proper measure of
damages. Douglass v. Licciardi, 386 [Link]. 292, 562 A.2d 913
(1989). Courts balance the probable diminution in value to the
injured party and the cost of repairs, bearing in mind that the cost of
repairs
1. Breach of warranties of habitability and reasonable
workmanship
Warranty of habitability or reasonable workmanship is implied in
every contract where a builder-vendor sells a new home to a
residential purchaser.
The warranties are not created by representations of the buildervendor but are implied in law.
The contract between Homes, Inc. and Dan contained an implied
warranty of habitability or reasonable workmanship, which was
probably breached.
2. Damages
Goal of damages in breach of building contract by the contractor is
to protect the expectation interest of the injured party.
Where the building contractor breaches the contract by defective
performance, cost of repair or completion is the usual remedy.
If the cost of repair is disproportionate to loss in value to the injured
party, the loss in value is the proper measure of damages.
When it is not possible to prove the loss of value to the injured party
with sufficient certainty, then the party may recover damages;
based on the cost to remedy the defects even if the recovery is
somewhat more than the loss in value to the property; or
the diminution in the market price of the property caused by the
breach.
Accord and Satisfaction
Accord is a contract whereby an obligee promises to accept a stated
performance in satisfaction of the obligors original duty.
Where there is a dispute between the parties concerning the amount
due, consideration for an accord is found when the creditor accepts
an amount less than he or she claims to be due.
Original duty is not discharged until the accord is performed or
satisfied.
1. Creation of a Tenancy by the Entireties
Tenancy by the entireties is limited to married people.
Although a conveyance to two unmarried persons will not
create a tenancy by the entireties, the conveyance is still valid.
The appropriate form of joint ownership is based upon the
intent gleaned from the language of the deed.
Use of term tenancy by entireties has been construed to
create the form of joint ownership that most closely approximates a
tenancy by the entireties - a joint tenancy with right of survivorship.
Under a joint tenancy with right of survivorship, the surviving
joint tenant succeeds to sole ownership of the property upon the
death of the other joint tenant.
Enforcement of a Restrictive Covenant
Recognition of restrictive covenant issue based upon restriction
contained in the subdivision plan.
Elements for determining whether a restriction is a restrictive
covenant running with the land that can be enforced by and against
successive owners: touches and concerns the land and intent to bind
based upon the language, purposes and conditions surrounding the
execution of the covenant.
Actual notice to the successive owner of the existence of the
covenant is not needed if the covenant was intended to run with the
land.
Appropriate remedy to prevent violation of a restrictive
covenant is an action in equity seeking injunctive relief.
5 Points
Comments: Candidates should recognize that the restriction
contained in the subdivision plan is a restrictive covenant. Candidates
shall determine whether this particular covenant runs with the land
by stating the legal elements necessary for a covenant to be binding
upon successive owners and applying these elements to the stated
facts. Candidates should conclude their analysis by discussing the
specific relief to stop a violation of a restrictive covenant running
with the land.
3. Enforcement of Oral Agreements to Answer for the Debt of
Another and the Statute of Frauds
Statute of Frauds requires that agreements to pay the debt of
another must be in writing.
Specific Exception to this rule under the Statute of Frauds -
agreements to pay the debt of another can be enforced under the
main purpose or leading object exception.
4. Liquidated Damages for Breach of Contract
Elements for a valid liquidated damages clause: computation of
actual damages is speculative or difficult to estimate or ascertain and
amount of damages is a reasonable forecast of expected loss.
Liquidated damages are an unenforceable penalty if the
damages fixed in advance are highly disproportionate to the amount
of the actual loss.
If a liquidated damages clause is valid, the parties cannot
subsequently claim entitlement to actual damages.