3-18-19 National Sloppy Joe Day PROPERTY B SLIDES 3-18-19 National Sloppy Joe Day

Lunch Tomorrow Next Few DF Sessions: Monday March 18 Music to Accompany EFI Problems: Wynton Marsalis, Trumpet Classic Wynton (1998) Lunch Tomorrow Meet on Bricks @ 12:25 Alonso * Auer * Beck N. Caceres * Delgado Hays * Shetty Next Few DF Sessions: Today @ 9:40 Here = 2015 Chapter 3 Test (Brendan) Wed 3/6 @ 9:40 Here = 2016 Chapter 3 Test (Lauren) Fri 3/8 @ 12:30 Here = 2017 Chapter 3 Test (Brendan)

A Multi-Generational Mash-Up in Tribute to the Women of Section B PROPERTY B: 3/18 Pop Culture Moment “YOU GO TO MY HEAD” A Multi-Generational Mash-Up in Tribute to the Women of Section B

Previously in Property B We Completed Chapter Two with the Aerial Parts of the Tempest of the Teapot Problem and Learned an Important Life Lesson

Previously in Property B

Previously in Property B: Chapter 3 Distinctions You Should Know Basics: Present Possessory Estates v. Future Interests Fee Simple v. Finite Present Estates Common Law v. Today We’ll Review Now: Reversions v. Remainders Vested v. Contingent Remainders Remainders v. Executory Interests We’ll Review Before Doing Problem 3I : Determinable v. on Condition Subsequent

WARM-UP/REVIEW Key Ideas/Terms to Set Up Problems 3K-3N Reversion v. Remainder REVERSION: Future interest implicitly retained by grantor when s/he conveys a finite estate without indicating who will have rights when it expires. REMAINDER: Future interest in a third party that follows naturally upon the termination of a finite estate. It is always expressly conveyed by the grantor.

WARM-UP/REVIEW Key Ideas/Terms to Set Up Problems 3K-3N VESTED Remainder IF: Grantee is living ascertainable person AND Clause creating the remainder contains no condition on grantee taking the property except expiration of prior estate. CONTINGENT Remainder I IF: Grantee is presently unborn or unascertainable OR Clause creating the remainder contains an explicit condition on grantee taking the property.

WARM-UP/REVIEW Key Ideas/Terms to Set Up Problems 3K-3N Remainder v. Executory Interest REMAINDER: Future interest in a third party that follows naturally upon the termination of a finite estate. EXECUTORY INTEREST: Future interest in a third party that cuts off a prior vested interest (present estate or reversion or vested remainder) rather than waiting for it to expire naturally.

WARM-UP/REVIEW Key Ideas/Terms to Set Up Problems 3K-3N Shifting v. Springing Executory Interests No legal consequence; just categorization. Shifting Executory Interest cuts off interest of another grantee. To Danny & his heirs so long as no tobacco is grown on the land, otherwise to Arturo and his heirs. Springing Exec. Interest cuts off grantor’s fee simple or reversion. To Yujia & her heirs if she passes the California Bar Exam. (Would cut off grantor’s fee simple).

WARM-UP/REVIEW Key Ideas/Terms to Set Up Problems 3K-3N Alternative Contingent Remainders Two contingent remainders for which the event that causes one to vest will destroy the other. Example: To K for life, then to L and her heirs if she graduates from law school, but if she never graduates from law school, then to M and her heirs. Here, only two possibilities: EITHER (1) L will graduate from law school (and would then take) OR (2) she will die before graduating from law school (M would then take)

WARM-UP/REVIEW Key Ideas/Terms to Set Up Problems 3K-3N Alternative Contingent Remainders Two contingent remainders for which the event that causes one to vest will destroy the other. Example: To K for life, then to L and her heirs if she graduates from law school, but if she never graduates from law school, then to M and her heirs. When Alternative Contingent Remainders Created, Grantor Always Retains a Reversion

Vested Remainder Subject to Divestment Vested Remainder followed by an Executory Interest that could cut it off before it becomes possessory. Same as what textbook calls “Vested Remainder Subject to Complete Defeasance” (P539)

Vested Remainder Subject to Divestment O “to A for life, then to B & her heirs, but if B dies before 21, then to C & his heirs.” (No Reversion in O) Clause creating interest in B has no conditions, so “vested remainder” Executory interest in C could cut off B’s interest before B takes possession (= end of life estate), so “subject to divestment”

Contingent Remainder (1) v. Vested Remainder Subject to Divestment (2) O “to A for life, then to B & her heirs if she turns 21, but if B dies before 21, then to C and his heirs.” Reversion in O. [Clause creating interest in B includes condition] (2) O “to A for life, then to B & her heirs, but if B dies before 21, then to C & his heirs.” (No Reversion in O) [Clause creating interest in B has no conditions]

EXAM TIP: COMMON MISTAKES Contingent Remainder Subject to Open Contingent Remainder Subject to Divestment Executory Interest Subject to Divestment

EXAM TIP: COMMON MISTAKES Contingent Remainder Subject to Open Contingent Remainder Subject to Divestment Executory Interest Subject to Divestment These Phrases Only Used for Vested Remainders

EVERGLADES: Problems 3K-3L EGRET IN MANGROVE SWAMP

Everglades (3K): “To George for life, then to Kramer and his heirs; but if Kramer does not attain the age of 21, then to Elaine and her heirs." Kramer is 15 years old. George ?

George: Life Estate Kramer? Everglades (3K): “To George for life, then to Kramer and his heirs; but if Kramer does not attain the age of 21, then to Elaine and her heirs." Kramer is 15 years old. George: Life Estate Kramer?

Kramer: Vested Rem. (in f.s.) Subj. to Divestment Everglades (3K): “To George for life, then to Kramer and his heirs; but if Kramer does not attain the age of 21, then to Elaine and her heirs." Kramer is 15 years old. George: Life Estate Kramer: Vested Rem. (in f.s.) Subj. to Divestment Vested b/c K not reaching 21 is condition on Elaine’s interest; K doesn’t have to reach 21 to get possession Subject to Divestment b/c K can lose interest before it becomes possessory if he dies before 21 while G alive Elaine?

Elaine: Shifting Executory Interest (in f.s.) Everglades (3K): “To George for life, then to Kramer and his heirs; but if Kramer does not attain the age of 21, then to Elaine and her heirs." Kramer is 15 years old. George: Life Estate Kramer: Vested Rem. (in f.s.) Subj. to Divestment Elaine: Shifting Executory Interest (in f.s.) Executory Interest b/c would cut off K’s Vested Rem. (or Fee if K gets possession before turning 21) Shifting b/c cutting off grantee’s interest Note: If there’s a vested remainder, can’t have a second remainder following same finite interest.

What if Kramer then turns 21 before George dies? Everglades (3K): “To George for life, then to Kramer and his heirs; but if Kramer does not attain the age of 21, then to Elaine and her heirs." Kramer is 15 years old. George: Life Estate Kramer: Vested Rem. (in f.s.) Subj. to Divestment Elaine: Shifting Executory Interest (in f.s.) What if Kramer then turns 21 before George dies?

QUESTIONS? George: Life Estate Everglades (3K): “To George for life, then to Kramer and his heirs; but if Kramer does not attain the age of 21, then to Elaine and her heirs." Kramer turns 21; George still alive. George: Life Estate Kramer: Vested Rem. (in f.s.) Subj. to Divestment Elaine: Shifting Executory Interest (in f.s.) Interest fails. QUESTIONS?

THEN Sequoia: Problem 3M & Badlands: Problem 3N Problems 3L-3N Everglades: Problem 3L THEN Sequoia: Problem 3M & Badlands: Problem 3N Hold Qs Until We’ve Worked Through All Three

Everglades (3L): Daffy "to Tweety for life, then to such of Tweety's children as survive him, but if none of Tweety's children survives him, then to Peggy and her heirs." Tweety has 2 children, Heckle and Jeckle. Tweety: ?

Tweety: Life Estate Tweety’s Children? Everglades (3L): Daffy "to Tweety for life, then to such of Tweety's children as survive him, but if none of Tweety's children survives him, then to Peggy and her heirs." Tweety has 2 children, Heckle and Jeckle. Tweety: Life Estate Tweety’s Children?

Everglades (3L): Daffy "to Tweety for life, then to such of Tweety's children as survive him, but if none of Tweety's children survives him, then to Peggy and her heirs." Tweety has 2 children, Heckle and Jeckle. Tweety: Life Estate Tweety’s Children: Contingent Remainder (in f.s.) (Must Survive Tweety) Peggy?

Everglades (3L): Daffy "to Tweety for life, then to such of Tweety's children as survive him, but if none of Tweety's children survives him, then to Peggy and her heirs." Tweety has 2 children, Heckle and Jeckle. Tweety: Life Estate Tweety’s Children: Contingent Remainder (in f.s.) Peggy: Alternative Contingent Remainder (in f.s.): Only 2 Possibilities: Tweety survived by children (who take) Tweety not survived by children (Peggy takes)

Everglades (3L): Daffy "to Tweety for life, then to such of Tweety's children as survive him, but if none of Tweety's children survives him, then to Peggy and her heirs." Tweety has 2 children, Heckle and Jeckle. Tweety: Life Estate Tweety’s Children: Alternative Contingent Remainder (in f.s.) Peggy: Alternative Contingent Remainder (in f.s.) Anything Else?

Daffy: Reversion (even when alternate contingent remainders) Everglades (3L): Daffy "to Tweety for life, then to such of Tweety's children as survive him, but if none of Tweety's children survives him, then to Peggy and her heirs." Tweety has 2 children, Heckle and Jeckle. Tweety: Life Estate Tweety’s Children: Contingent Remainder (in f.s.) Peggy: Alternative Contingent Remainder (in f.s.) Daffy: Reversion (even when alternate contingent remainders)

Everglades (3L): Daffy "to Tweety for life, then to such of Tweety's children as survive him, but if none of Tweety's children survives him, then to Peggy and her heirs." Tweety: Life Estate Tweety’s Children: Alternative Contingent Remainder (in f.s.) Peggy: Alternative Contingent Remainder (in f.s.) Daffy: Reversion (even when alternate contingent remainders)

SEQUOIA: Problem 3M SEQUOIAS

Sequoia (3M): Amanda "to Billy for life, then to Billy's children and their heirs, but if at Billy's death he is not survived by any children, then to Jo and her heirs." Billy has no children. Billy: ?

Billy: Life Estate Billy’s children: ? Sequoia (3M): Amanda "to Billy for life, then to Billy's children and their heirs, but if at Billy's death he is not survived by any children, then to Jo and her heirs." Billy has no children. Billy: Life Estate Billy’s children: ?

Billy’s children: Contingent Remainder (in f.s.) (Unborn) Sequoia (3M): Amanda "to Billy for life, then to Billy's children and their heirs, but if at Billy's death he is not survived by any children, then to Jo and her heirs." Billy has no children. Billy: Life Estate Billy’s children: Contingent Remainder (in f.s.) (Unborn) Jo: ?

Alternative Contingent Remainders Two contingent remainders for which the event that causes one to vest will destroy the other.

Sequoia (3M): Amanda "to Billy for life, then to Billy's children and their heirs, but if at Billy's death he is not survived by any children, then to Jo and her heirs." Billy has no children. When does contingent remainder in B’s children vest?

Sequoia (3M): Amanda "to Billy for life, then to Billy's children and their heirs, but if at Billy's death he is not survived by any children, then to Jo and her heirs." Billy has no children. Contingent remainder in B’s children vests when a child of B’s is born. When does contingent remainder in Jo vest?

Sequoia (3M): Amanda "to Billy for life, then to Billy's children and their heirs, but if at Billy's death he is not survived by any children, then to Jo and her heirs." Billy has no children. Contingent remainder in B’s children vests when a child of B’s is born. Contingent remainder in Jo vests when Billy dies survived by no children. Is the interest in Jo destroyed when the interest in the children vests?

Jo: Contingent Remainder (in f.s.) (Not alternate) Sequoia (3M): Amanda "to Billy for life, then to Billy's children and their heirs, but if at Billy's death he is not survived by any children, then to Jo and her heirs." Billy has no children. Billy: Life Estate Billy’s children: Contingent Remainder (in f.s.) Jo: Contingent Remainder (in f.s.) (Not alternate) Anything Else?

Sequoia (3M): Amanda "to Billy for life, then to Billy's children and their heirs, but if at Billy's death he is not survived by any children, then to Jo and her heirs." Billy has no children. Billy: Life Estate Billy’s children: Contingent Remainder (in f.s.) Jo: Contingent rem. (in f.s.) (Not alternate) Amanda: Reversion

Sequoia (3M): Amanda "to Billy for life, then to Billy's children and their heirs, but if at Billy's death he is not survived by any children, then to Jo and her heirs." Billy has no children. Billy: Life Estate Billy’s children: Contingent Rem. (in f.s.) (unborn) Jo: Contingent Rem. (in f.s.) (Not Alternative) Amanda: Reversion

Billy: Life Estate Sydney? Sequoia (3M): Amanda "to Billy for life, then to Billy's children and their heirs, but if at Billy's death he is not survived by any children, then to Jo and her heirs." Billy has a child, Sydney. Billy: Life Estate Sydney?

Sydney: Vested Remainder (in f.s.) … Sequoia (3M): Amanda "to Billy for life, then to Billy's children and their heirs, but if at Billy's death he is not survived by any children, then to Jo and her heirs." Billy has a child, Sydney. Billy: Life Estate Sydney: Vested Remainder (in f.s.) … Subject to Open (B can have more children) … Subject to Divestment (interest lost if none of B’s children survive B) Jo?

Sequoia (3M): Amanda "to Billy for life, then to Billy's children and their heirs, but if at Billy's death he is not survived by any children, then to Jo and her heirs." Billy has a child, Sydney. Billy: Life Estate Sydney: Vested Remainder (in f.s.) Subject to Open, Subject to Divestment Jo: Shifting Executory Interest (in f.s.) (would cut off vested remainder) Amanda?

Sequoia (3M): Amanda "to Billy for life, then to Billy's children and their heirs, but if at Billy's death he is not survived by any children, then to Jo and her heirs." Billy has a child, Sydney. Billy: Life Estate Sydney: Vested Remainder (in f.s.) Subject to Open, Subject to Divestment Jo: Shifting Executory Interest (in f.s.) (would cut off vested remainder) Amanda: Nothing (Reversion divests when 1st contingent remainder vests)

Significance: Alt. Contingent Remainders (1) v Significance: Alt. Contingent Remainders (1) v. Vested Remainder Subject to Divestment (2) To A for life, [then to B & her heirs if she turns 21], [but if B dies before 21, then to C and his heirs]. Reversion in O. (2) To A for life, [then to B & her heirs], [but if B dies before 21, then to C & his heirs.] (No Reversion in O)

Significance: Alt. Contingent Remainders (1) v Significance: Alt. Contingent Remainders (1) v. Vested Remainder Subject to Divestment (2) (1) To A for life, then to B & heirs if she turns 21, but if B dies before 21, then to C & heirs. Reversion in O. (2) To A for life, then to B & her heirs, but if B dies before 21, then to C & his heirs. Both 1+2: If A alive & B dies at 14: B gets Nothing; C gets fee simple at A’s death

Significance: Alt. Contingent Remainders (1) v Significance: Alt. Contingent Remainders (1) v. Vested Remainder Subject to Divestment (2) (1) To A for life, then to B & heirs if she turns 21, but if B dies before 21, then to C & heirs. Reversion in O. (2) To A for life, then to B & her heirs, but if B dies before 21, then to C & his heirs. Both 1+2: If A alive & B turns 21: B has vested remainder C’s interest fails

(1) If A dies & B not yet 21 (if Contigent Remainder): Significance: Alt. Contingent Remainders (1) v. Vested Remainder Subject to Divestment (2) (1) To A for life, then to B & her heirs if she turns 21, but if B dies before 21, then to C and his heirs. Reversion in O. (2) To A for life, then to B & her heirs, but if B dies before 21, then to C & his heirs. (1) If A dies & B not yet 21 (if Contigent Remainder): Conditions not met for either B or C. Remainders either destroyed or become Springing Executory Interests O takes Fee Simple [on Executory Limitation in Modern View (exc. FL)]

(2) If A dies & B not yet 21 (if Vested Rem. Subj. to Divmt) Significance: Alt. Contingent Remainders (1) v. Vested Remainder Subject to Divestment (2) (1) To A for life, then to B & her heirs if she turns 21, but if B dies before 21, then to C and his heirs. Reversion in O. (2) To A for life, then to B & her heirs, but if B dies before 21, then to C & his heirs. (2) If A dies & B not yet 21 (if Vested Rem. Subj. to Divmt) No requirement that B turn 21 to take possession, so B does take possession and has Fee Simple on Executory Limitation. C still has Shifting Executory Interest that will become possessory if B dies before turning 21.

BADLANDS: Problem 3N NORBECK PASS

Badlands (3N): Clark “to Jimmy for life, then to Lois & her heirs, but if Jimmy is survived at his death by any children, then to such surviving children & their heirs. Jimmy has two children, Perry & Della. Jimmy?

Jimmy: Life Estate Lois? Badlands (3N): Clark “to Jimmy for life, then to Lois & her heirs, but if Jimmy is survived at his death by any children, then to such surviving children & their heirs. Jimmy has two children, Perry & Della. Jimmy: Life Estate Lois?

Lois: Vested Remainder (in f.s.) Subject to Divestment Badlands (3N): Clark “to Jimmy for life, then to Lois & her heirs, but if Jimmy is survived at his death by any children, then to such surviving children & their heirs. Jimmy has two children, Perry & Della. Jimmy: Life Estate Lois: Vested Remainder (in f.s.) Subject to Divestment J’s Children

J’s Children: Shifting Executory Interest (in f.s.) Badlands (3N): Clark “to Jimmy for life, then to Lois & her heirs, but if Jimmy is survived at his death by any children, then to such surviving children & their heirs. Jimmy has two children, Perry & Della. Jimmy: Life Estate Lois: Vested Remainder (in f.s.) Subject to Divestment J’s Children: Shifting Executory Interest (in f.s.) Clark?

Badlands (3N): Clark “to Jimmy for life, then to Lois & her heirs, but if Jimmy is survived at his death by any children, then to such surviving children & their heirs. Jimmy has two children, Perry & Della. Jimmy: Life Estate Lois: Vested Remainder (in f.s.) Subject to Divestment J’s Children: Shifting Executory Interest (in f.s.) Clark: Nothing

GRANTS IN (3L) & (3M) & (3N) ALL TRYING TO DO SAME THINGS: To A for life, then … If A has any surviving children, they take. If no surviving children, to B. BUT The Precise Wording of Each Grant Creates a Slightly Different Set of Interests

(3L) & (3M) & (3N) Test Note #4: Test Will Include Grants Modeled on At Least Two of These Problems. I’ll Ask You to: Identify the Interests Created; and Identify the State of the Title as Relevant Parties are Born or Die.

(3L) & (3M) & (3N) QUESTIONS?

Remainders & Executory Interests: Additional Information

Vested Remainder Subject to Divestment (1) v. Vested Remainder in F. S Vested Remainder Subject to Divestment (1) v. Vested Remainder in F.S. subj. to Exec. Lim. (2) (1) To A for life, then to B & her heirs, but if B dies before turning 21, then to C & his heirs. Condition might occur before B obtains possession.

Vested Remainder Subject to Divestment (1) v. Vested Remainder in F. S Vested Remainder Subject to Divestment (1) v. Vested Remainder in F.S. subj. to Exec. Lim. (2) (1) To A for life, then to B & her heirs, but if B dies before turning 21, then to C & his heirs. Condition might occur before B takes possession. (2) To A for life, then to B & her heirs, but if B ever uses the land for commercial purposes, to C & his heirs. Condition is a limit on B’s use of the land and cannot occur before B takes possession.

TERMINOLOGY: ME v. WORKBOOK To A for life, then to B & her heirs, but if B dies before turning 21, then to C & his heirs. Condition might occur before B takes possession, but also might occur after. WORKBOOK (p93): Vested Remainder Subject to Divestment in Fee Simple on Executory Limitation. ME: Phrase in italics is accurate but unnecessary. In multiple choice answers, I will simply call this interest a Vested Remainder Subject to Divestment (as long as it might occur before possession).

REVIEW: DEFEASIBLE FEES & DEFEASIBLE FINITE PRESENT ESTATES

DEFEASIBLE FEES: Two Relevant Distinctions Who holds future interest?: Grantor v. Grantee Automatic termination v. Needs action by future interest holder Yields Following Flow Chart

FLOW CHART: IDENTIFYING DEFEASIBLE FEES 68

FLOW CHART: IDENTIFYING DEFEASIBLE FEES 69

FLOW CHART: IDENTIFYING DEFEASIBLE FEES 70

TERMINOLOGY: ME v. WORKBOOK (Reminder) Defeasible fee in form of a Fee Simple Determinable BUT with the future interest in third party: Me (& Restatement & You on Test): “Fee Simple on Executory Limitation” Workbook: “Fee Simple Determinable” (See Workbook p.72 fn19)

Review: Accessorizing Defeasible Fees & Matching Future Interests FEE SIMPLE DETERMINABLE & Possibility of Reverter F.S. ON CONDITION SUBSEQUENT & Right of Re[Entry] F.S. ON EXECUTORY LIMITATION & Executory Interest

Review: Examples of Defeasible Finite Estates Term of Years on Condition Subsequent: “To Rachel for 20 years, but if she ever passes the bar exam, I can enter & retake.” Life Estate on Executory Limitation “To Ajith for life, but to Ben & his heirs if Ben ever passes the bar exam.”

REVIEW Defeasible Finite Estates & Matching Future Interests Defeasible Finite Estates Necessarily Create Two Future Interests One cuts off the finite estate if the condition is met One follows at the end of the finite estate if it terminates naturally (i.e., if the condition is not met). If One Person Holds Both of These Future Interests, They Will Merge Into the “Larger” Interest

REVIEW Defeasible Finite Estates & Matching Future Interests Defeasible Finite Estates Necessarily Create Two Future Interests If One Person Holds Both of These Future Interests, They Will Merge Into the “Larger” Interest Example (3H): Thelma conveys “To Louise for 99 Years if Louise so long live." Louise: Term of years determinable. Thelma: Possibility of Reverter plus Reversion  Reversion (Merger) (Merger into “reversion” captures idea that T will end up with land eventually no matter what.)

Defeasible Finite Estates & Matching Future Interests Defeasible Finite Estates Necessarily Create Two Future Interests If One Person Holds Both of These Future Interests, They Will Merge Into the “Larger” Interest NEW Example (E79): O “To A for life or until A divorces, then to B" A: Life Estate on Executory Limitation. B: Shifting Exec. Int. + Vested Remainder  Vested Rem. (Merger) (Again, merger into “vested remainder” captures idea that B will end up with land eventually no matter what.)

SEQUOIA: Problem 3I SEQUOIAS

Sequoia: (3I): O conveys "to J and her heirs so long as the premises are not used for sale of beer, wine, or liquor, and if beer, wine, or liquor is sold on the premises, O retains a right to re-enter the premises." ` J opens a restaurant that serves several dishes cooked with wine or flamed with brandy and at Sunday brunch offers a free glass of champagne. The restaurant is successful, and 11 years after its opening D wants to buy it and add a bar. Advise D.

MULTI-STEP ANALYSIS (from Course Page) Sequoia: (3I): O conveys "to J and her heirs so long as the premises are not used for sale of beer, wine, or liquor, and if beer, wine, or liquor is sold on the premises, O retains a right to re-enter the premises." MULTI-STEP ANALYSIS (from Course Page) Corresponds to Plausible Sequence of Multiple Choice Qs FSD or FSCS? CONDITION VIOLATED? EFFECT OF VIOLATION? ADVICE RE PURCHASE

MULTI-STEP ANALYSIS FSD or FSCS? Sequoia: (3I): O conveys "to J and her heirs so long as the premises are not used for sale of beer, wine, or liquor, and if beer, wine, or liquor is sold on the premises, O retains a right to re-enter the premises." MULTI-STEP ANALYSIS FSD or FSCS? CONDITION VIOLATED? EFFECT OF VIOLATION? ADVICE RE PURCHASE

Arguments for Each Position? Sequoia: (3I): O conveys "to J and her heirs so long as the premises are not used for sale of beer, wine, or liquor, and if beer, wine, or liquor is sold on the premises, O retains a right to re-enter the premises." FSD or FSCS? Does Orrin’s interest vest automatically (FSD) or does he have to act (FSCS)? Arguments for Each Position?

FSD or FSCS: Arguments Include: Sequoia: (3I): O conveys "to J and her heirs so long as the premises are not used for sale of beer, wine, or liquor, and if beer, wine, or liquor is sold on the premises, O retains a right to re-enter the premises." FSD or FSCS: Arguments Include: “So long as” & condition built into 1st clause suggest FSD Moment of violation likely pretty clear, so can be FSD “Right to re-enter” & 2 clauses suggest FSCS “Retains” suggests FSCS b/c implies that O’s right can be held for some period of time after violation Most states: Presumption favoring FSCS Mahrenholz: More like punishment than purpose (suggests FSCS)

CONDITION VIOLATED? MULTI-STEP ANALYSIS Sequoia: (3I): O conveys "to J and her heirs so long as the premises are not used for sale of beer, wine, or liquor, and if beer, wine, or liquor is sold on the premises, O retains a right to re-enter the premises." MULTI-STEP ANALYSIS FSD or FSCS? Some Arguments Each Way CONDITION VIOLATED? EFFECT OF VIOLATION? ADVICE RE PURCHASE

Does It Violate Condition if J’s Restaurant: Sequoia: (3I): O conveys "to J and her heirs so long as the premises are not used for sale of beer, wine, or liquor, and if beer, wine, or liquor is sold on the premises, O retains a right to re-enter the premises." Does It Violate Condition if J’s Restaurant: Serves several dishes cooked with wine or flamed with brandy? At Sunday brunch offers complimentary glass of Champagne?

Sequoia: (3I): O conveys "to J and her heirs so long as the premises are not used for sale of beer, wine, or liquor, and if beer, wine, or liquor is sold on the premises, O retains a right to re-enter the premises." MULTI-STEP ANALYSIS FSD or FSCS? CONDITION VIOLATED? No Direct Sale of Liquor for $$$; Cooking Removes Actual Alcohol; Flavored Dishes Maybe Not w/in Intent BUT: Cost of Alcohol Incorporated in Purchase Price; Diners Buying Alcohol in Meals; Glass of Champagne Maybe w/in Intent Nice Zipper idea about checking state or local alcohol regulations for definition of “sale of beer, wine, or liquor.” (Need to cross-check against grantor’s likely intent) EFFECT OF VIOLATION? ADVICE RE PURCHASE

MULTI-STEP ANALYSIS EFFECT OF VIOLATION? Sequoia: (3I): O conveys "to J and her heirs so long as the premises are not used for sale of beer, wine, or liquor, and if beer, wine, or liquor is sold on the premises, O retains a right to re-enter the premises." MULTI-STEP ANALYSIS FSD or FSCS? (Last Time: Arguments Both Ways) CONDITION VIOLATED? (Last Time: Arguments Both Ways) EFFECT OF VIOLATION? If FSD & Poss. of Reverter? If FSCS & Rt. of Entry ADVICE RE PURCHASE

J has FSD & O has Possibility of Reverter Sequoia: (3I): O conveys "to J and her heirs so long as the premises are not used for sale of beer, wine, or liquor, and if beer, wine, or liquor is sold on the premises, O retains a right to re-enter the premises." Effect of Violation if J has FSD & O has Possibility of Reverter O gets legal title at moment of violation. If sufficient time has passed, J may have title through adverse possession. Effect of Violation if FSCS & Rt. of Entry?

J has FSCS & O has Right of Entry Sequoia: (3I): O conveys "to J and her heirs so long as the premises are not used for sale of beer, wine, or liquor, and if beer, wine, or liquor is sold on the premises, O retains a right to re-enter the premises." Effect of Violation if J has FSCS & O has Right of Entry Assuming O has not acted, O still has RE If O is aware of Julia’s use of alcohol, may be held to have waived the right to enforce regarding these kinds of uses of alcohol.

MULTI-STEP ANALYSIS ADVICE RE PURCHASE? Sequoia: (3I): O conveys "to J and her heirs so long as the premises are not used for sale of beer, wine, or liquor, and if beer, wine, or liquor is sold on the premises, O retains a right to re-enter the premises." MULTI-STEP ANALYSIS FSD or FSCS? CONDITION VIOLATED? EFFECT OF VIOLATION? (depends on FSD or FSCS) ADVICE RE PURCHASE?

Sequoia: (3I): O conveys "to J and her heirs so long as the premises are not used for sale of beer, wine, or liquor, and if beer, wine, or liquor is sold on the premises, O retains a right to re-enter the premises." J opens a restaurant that serves several dishes cooked with wine or flamed with brandy and at Sunday brunch offers a free glass of champagne. The restaurant is successful, and 11 years after its opening D wants to buy it and add a bar. ASSUME Unclear under relevant state law: FSD or FSCS Whether J has violated condition. Possible Advice to D?