Question 1

Kenny was a trustee for a trust which looked after the property of Anna who was only

14. This property included the lease of a market. This market earned considerable income. The lease was coming up for renewal and the landlord told Kenny that he did not want to renew the lease with Anna and he was very definite about this decision. On hearing this Kenny began discussing with the landlord the possibility taking on the lease himself. The landlord agreed to this, and so when the lease expired it was transferred to Kenny. When Anna turned 18 she found out what Kenny had done.

Anna seeks you advice.

Outline the legal issues in this scenario and advise Anna of her legal rights and what remedies might be available to her.

Question 2

Jenny consulted her accountant Don about investing some money she had recently inherited in real estate. At that time Don was interested in selling some real estate that he owned in order to buy a racehorse. He advised her that he would let her know if he heard of any possible investments. A week later he phoned her and told her that he had just come across a particular commercial property that was for sale.

Don did not tell her that he was the vendor. Jenny decided to buy the property because the price seemed fair. Later she found out about Don's interest in the property and was angry that he did not tell her he was the seller.

Jenny seeks your advice.

Outline the legal issues in this scenario and advise Jenny of her legal rights and what remedies might be available to her.

Question 3

a.Give examples of each of thefollowing:

(i)Tangible real property

(ii)Intangible real property

(iii)Chattelsreal

(iv)Tangible personal property

(v)Intangible personal property

b.Why is it important to know the difference between real property and personal property?

c.Classify the followingproperty:

(i)Spapool

(ii)Floor coverings in ahouse

(iii)Gardenshed

(iv)Heated towel rail

(v)Bookshelf

Question 4

a.Fred lends his computer to Nadir. Before Nadir gives Fred his laptop he isdeclared bankrupt. Advise Fred whether he can get his laptop back andwhy.

b.Han has agreed to sell Maria his laptop. Maria pays $500 for the laptop, but it turns out that Han does not own the laptop. It is owned by his friend Cindy. In addition Han is also now bankrupt. Advise Maria whether she can get her $500 back andwhy.

c.Suming goes into a shop to purchase a fridge. She sees the one she wants, but due to its size needs to get it delivered. Suming pays for the fridge and it is to be delivered to her house two days later. But before the fridge is delived, the shop goes into liquidation. Advise Suming whether she can go and take the fridge andwhy.

d.What is the difference between a property right and a personal right? Why is it important to know thedifference?

Question 5

John died in a car crash. His will contained a clausewhichstated, "To my dearly beloved niece Grace I leave the sum of $10,000 in the expectation that she will use the money to care for and maintain my pet poodle Ralph as we discussed duringmy

lifetime."

Grace looks after Ralph but he develops a nasty hip displacement that will require an expensive operation to correct. Her boyfriend Bruce wants Grace to accompany him on a trip to Thailand. Grace can't afford the trip to Thailand and wants to use the money set aside for Ralph's care.

Does Grace have to use the money to pay for Ralph's operation? Why?