Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia This is the prescribed textbook for your course. Available NOW at your campus bookstore!

Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Property law: mortgages, leases and licences Chapter 10

Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 10-2 Definitions Ownership: Person has legal rights over the property. Possession: Person has physical control over the property.

Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 10-3 Property Real property - Land - Items attached to land - Leases Personal property - Chattels that can be (not real property) possessed (tangible objects) - Chattels that cannot be possessed (intangible objects) » interest in partnership » copyright »shares »trademarks

Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 10-4 Real property - attachments TestFixtures (part of real property for sale purposes) Fittings Manner of attachment PermanentCan be easily removed Purpose of attachment (intention) For enjoyment of the item Damage resulting to remove Major damageMinor damage

Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 10-5 Interests in land Doctrine of Tenure: Absolute ownership not possible as all land owned by Crown.

Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 10-6 Estates in land Freehold Interest in land of uncertain duration. Fee simple: Interest continues, provided owner dies leaving an heir. Life estates: Created for life of a particular person. Leasehold Contract in the form of a lease for a fixed period between two parties: - lessor (landowner) - lessee (tenant) Native title to land Title enjoyed by descendants of the original inhabitants.

Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 10-7 Estate in land – freehold ReversionRemainder A (Fee simple of land) on B’s death B (Life estate of land) on B’s death C

Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 10-8 Definitions Lease: An interest in land given by a landlord to a tenant, for a fixed period of time, granting exclusive possession. eg. lease of shop, house Licence: A contractual right (unable to be revoked) to do something on land that would otherwise be illegal. e.g.  sell alcohol  manufacture a product under patent

Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 10-9 Comparison of lease and licence

Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia Types of lease Fixed term lease is for a fixed period. Periodic tenancy continues indefinitely from one period to another (ending by notice given by either party). Tenancy at will is without any fixed duration with the consent of the landlord, requiring no rent repayments (ending by notice given by either party). Tenancy at sufferance occurs where the tenant remains in possession of premises after the expiry of the previous tenancy, without the consent of the landlord, and does not pay rent.

Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia Termination Lease Expiry of term Notice to quit Forfeiture Surrender Repudiation Breach of an essential term (i.e. condition) of a lease Tenancy Express agreement By tenant By landlord Surrender

Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia Terms of lease CovenantCondition Breach Breach Remedies:DamagesRescind contract InjunctionDamages

Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia Covenants of landlord and tenant Covenants by the tenant To pay the rent To keep and deliver up the premises to the landlord at the end of the term in a good state of repair Permit landlord to enter to inspect Permit landlord to re-enter if fail to pay rent Not to assign or sublet without landlord’s permission Not to conduct illegal activity on premises Covenants by the landlord To allow the tenant quiet possession of premises (without interference) Pay rates and taxes except those expressly the duty of the tenant Repair the premises

Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia Comparison of leases

Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia Land title Old system land: Title based on the production of all deeds transferring or conveying land from one person to another. Torrens title: Title based on transactions recorded on one certificate of title creating indefeasibility of title.

Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia Indefeasibility of title Means that the person who is registered on the title as owner has an indefeasible or unquestionable title to the land. (State guarantees the correctness of information contained on the title and provides compensation under an assurance fund.)

Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia Interests in land Legal Interests: Concerned with ownership (and controls associated with ownership). Equitable Interests: Concerned with those entitled to the benefits of the land. (Relevance: The holder of an equitable interest cannot enforce their claim against an innocent third party purchasing the legal interest in the land.)

Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia Examples of legal and equitable interests

Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia Co-ownership of land Unity of possession Each person has interest over the whole of the land, but not to the exclusion of other owners.

Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia Types of tenancy

Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia Securities for loans A mortgage is a contract in which a borrower (the mortgagor) gives the lender (the mortgagee) his/her real property as security for a loan.

Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia Mortgages over real property OLD SYSTEMTORRENS SYSTEM  Mortgagor transfers title to mortgagee.  Mortgagee registers on title. (Can be more than one)  Mortgagor redeems land on payment of all mortgage moneys. (Equity of redemption)

Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia Remedies in the event of default Sue for breach of contract Appoint a receiver Power of sale Obtain a foreclosure order

Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia Power of foreclosure Mortgagee can take over the property if mortgagor defaults. Major requirements: Default of at least six months Failure to achieve mortgagor’s debt at public auction Shortfall is not recoverable from mortgagor.

Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia Common law duties Common law duties of a mortgagee who sells up a property: Must give one month’s notice of intention to sell Must obtain best possible price for property sale.

Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia Bill of sale A contract allowing personal property to be used by the grantee (borrower) as security for a loan from the grantor (of the bill of sale).

Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia Security interests A pledge is a transfer of possession (not ownership) of a chattel, giving the lender (pledgee) the right to sell the pledged goods if the borrower (pledgor) defaults by the stipulated date, or within a reasonable time (if no date stipulated).

Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia Security interests A lien gives a creditor a right to possess the debtor’s property until the debt is paid. A particular possessory lien is the right of one person to retain possession of goods of another until the debt associated with those goods is paid. A general possessory lien is the right of one person to retain possession of goods (lawfully obtained) of another until the debt owing is paid. An equitable lien is the right to have the property of another utilised to ensure payment of a debt, without possession of the property. Maritime liens are specifically binding on a ship and its cargo and freight. Statutory liens are created by an Act of Parliament.

Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia Guarantee A contract where one party (the guarantor) promises another party (the creditor) to carry out the obligations to another (the debtor), should the debtor default on their obligations.

Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia Indemnity A contract where one party (the indemnifier) undertakes to become liable to another against any loss arising out of a transaction with a third party.

Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia Bailment Occurs when possession (not ownership) of goods is transferred from one person (bailor) to another (bailee), e.g. pledge.

Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia Duties and liabilities of a bailee Duties of a bailee To return the goods to the bailor at the expiry of the bailment Not to misuse the goods To retain possession of the goods To take (reasonable) care of the goods Liability of a bailee Breach of contract Tort of - Negligence - Conversion - Detinue Vicarious liability

Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia Duties of a bailor Not to interfere with possession of goods that the bailee has, for the duration of the bailment To ensure quality and fitness of goods for a particular purpose

Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia Innkeepers Persons who hold themselves out as providing accommodation for travellers: Hotel keeper Motel keeper Liability: For loss or damage of guests’ property, taken into their possession for safekeeping

Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia Common carrier A carrier whose business is to carry goods for any customer requesting this service: Airlines Shipping operators Railways Liability: For any loss or damage to goods in its possession