Question 1

Which of the following describes involuntary bailment?

Accepted Answer

A) Someone is forced to provide bail. 
B) The bailor sells the goods to compensate for storage costs. 
C) Goods have been left without permission. 
D) The borrower refuses to return goods. 
E) The bailee refuses to claim the stored goods.

Question 2

What is the major advantage of the land titles system over the traditional land registry in Canada?

Accepted Answer

The answer of What is the major advantage of the...

Question 3

A surety bond provides assurance that the party to a contract will perform his or her part of the contract.

Accepted Answer

A) True 
 B)False

Question 4

Mr.Hoo granted a first mortgage on his property to Vancouver Trust as security for a loan of $110 000 and a second mortgage to Hong Kong Bank as security for a loan of $25 000.Which of the following statements is false?

Accepted Answer

A) If Hoo were to default on his first mortgage,Vancouver Trust could start the foreclosure process. 
B) If Hoo were to default on his first mortgage and the property was sold under court order,the proceeds from that sale would go first to Vancouver Trust,second to Hong Kong Bank,and the remainder,if any,to Hoo. 
C) If Hoo were to default on his second mortgage only and the second mortgagee foreclosed,then the first mortgagee and Hoo himself would lose their interests in the property. 
D) Hoo has given the fee simple interest in his property to Vancouver Trust; he has given Hong Kong Bank only his equity of redemption. 
E) If Hoo were to default on his first mortgage,his creditors could ask that the court order the property to be sold to avoid foreclosure.

Question 5

An option to purchase agreement is:

Accepted Answer

A) a contract by which an offeree promises to buy the property offered at a later date set in the contract. 
B) a contract by which the offeror of property promises to hold his offer open for a period of time during which the offeree can accept the offer and the property can't be sold to another. 
C) a contract that provides that a debtor will transfer title in property to a creditor as security for repayment of the debt. 
D) a contract transferring the fee simple to a new owner. 
E) a contract that provides that a seller will retain the title in the property until the buyer has made all of the required payments.

Question 6

Brenna owns two adjacent lakeside lots.She sells one lot to Burt and Ernie,with the provisions that they agree not to develop any commercial facilities on the land and to plant a row of rose bushes between the properties.The covenants are registered in the appropriate land title office.Which of the following is true?

Accepted Answer

A) If Burt and Ernie do not plant the bushes as agreed,Brenna could sue them for private nuisance. 
B) If Burt and Ernie sell the property,the new owner would not have to plant the row of rose bushes as provided in the original contract. 
C) If Burt and Ernie sell the property,the new owner would have to plant the row of rose bushes as provided in the original contract. 
D) The registration of a covenant guarantees that it is valid interest that runs with the land. 
E) If Burt and Ernie sell their lot to Holly,Holly would not be bound by the covenant to refrain from developing commercial facilities.

Question 7

Distinguish between a bailment for value and a voluntary bailment.

Accepted Answer

The answer of Distinguish between a bailment for value and...

Question 8

A second or third mortgagee is not affected if the first mortgagee obtains an order of foreclosure.

Accepted Answer

A) True 
 B)False

Question 9

Life estates are another way of describing landlord and tenant relationships.

Accepted Answer

A) True 
 B)False

Question 10

When a person has the right to go across land to get to another location,this is referred to as what?

Accepted Answer

The answer of When a person has the right to...

Question 11

A judicial sale does not affect a mortgagor's right to redeem the property.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is the correct definition of a chattel?

Accepted Answer

A) Chattel refers to intellectual property such as patents and copyrights. 
B) The term chattel is the broad term used to describe any kind of property interest. 
C) Chattel is the term used to describe tangible personal property or movables. 
D) Chattel is an intangible form of personal property,such as a debt or claim. 
E) Chattel is a term used to describe the land registration system in place in the Western provinces.

Question 13

A finder has no obligation to return found goods to the proper owner.

Accepted Answer

A) True 
 B)False

Question 14

Old Uncle Isaac has a cold and has become very morbid,talking continuously about funerals,death,and wills.Now he asks about life estates and wills; should he give his wife,Juliet,a life estate? Which of the following is a true statement about wills and life estates?

Accepted Answer

A) The owner of the fee simple can grant a life estate only while he is alive. 
B) If Isaac doesn't make out a will,his property will revert back to the Crown. 
C) The holder of a life estate must not harm the value of the reversionary interest. 
D) A life estate can only be created by contract. 
E) The life tenant is entitled to exclusive possession of the property for his or her remaining life and can extend the life tenancy by including the property in his or her will.

Question 15

Which of the following statements is correct with respect to bonding?

Accepted Answer

A) Bonding provides protection against losses incurred because of fluctuations in the financial markets. 
B) Bonding provides protection to the victim injured by the wrongful conduct of the person bonded. 
C) Bonding is a government certification system whereby the government guarantees that a person so bonded or certified will do the job he is hired to do as set out in the bonding certificate. 
D) If a person is bonded and that person commits some wrongful act such as stealing a client's money,the bonding company is bound to compensate him for any losses he suffers from being caught. 
E) Bonding is another term for insurance.The two terms,bonding and insurance,are interchangeable.

Question 16

For the purposes of vicarious liability and authority to contract,an insurance broker can still be considered an agent of the insurer when it appears to the insured that the broker represents the insurance company.

Accepted Answer

A) True 
 B)False

Question 17

The following are the mortgages registered against Holly's Holly Farm when it defaulted,and the amounts owed on each: first,in favour of the Royal Bank for $100 250; second,in favour of Kits Credit Union for $50 250; third,in favour of Aunt Suzy for $25 250.The Royal Bank petitioned for foreclosure.Which of the following is false?

Accepted Answer

A) If the Royal Bank eventually received the order absolute of foreclosure,the interest in the land of all those ranking below it would be lost because it forecloses the equity of redemption and that is the security the others had taken. 
B) Any of the parties to the action can ask the court for a judicial sale. 
C) If the property is sold by way of judicial sale,the equity of redemption is extinguished. 
D) If the property is sold by judicial sale and there is not enough to pay all mortgagees,those not paid can sue for the difference. 
E) If the property is sold by way of a judicial sale,and the first and second mortgagees are paid in full,but the third is not paid in full,the third is out of luck; Aunt Suzy has no further remedy.

Question 18

An all-risk insurance policy is likely to contain exclusions.

Accepted Answer

A) True 
 B)False

Question 19

With respect to the land titles system of registering interests in land,which one of the following is true?

Accepted Answer

A) This registration system is the same throughout Canada because the procedure has been set by the federal government to ensure a uniform method of registration. 
B) Mortgages,judgments,and easements need not be registered to protect those interests against third-party claims.Registration of such interests is voluntary and won't affect one's interest. 
C) When land is registered under the land titles system,it provides the advantage of guaranteed title and conclusive evidence of who has title to the property in any court. 
D) Most provinces in Canada have moved away from the land titles system in favour of the land registry system. 
E) The system exists to safeguard the documents; the government is not guaranteeing title.

Question 20

Marian met with the owner of a warehouse and contracted for factory space for a two-year term.The amount to be paid ($2400 yearly)and the premises were made clear,but nothing else was discussed.The law,however,implies some terms.Which of the following is a term of the contract?

Accepted Answer

A) The landowner has no obligation to provide vacant possession at the time the lease period is to start. 
B) The premises will be reasonably fit for Marian's purpose. 
C) The tenant is responsible for normal wear and tear. 
D) The landlord need not provide quiet enjoyment of the premises. 
E) Usually neither the landlord nor the tenant has an obligation to make repairs where normal wear and tear is involved.

Exam 8: Property

Which of the following describes involuntary bailment?

What is the major advantage of the land titles system over the traditional land registry in Canada?

A surety bond provides assurance that the party to a contract will perform his or her part of the contract.

Mr.Hoo granted a first mortgage on his property to Vancouver Trust as security for a loan of $110 000 and a second mortgage to Hong Kong Bank as security for a loan of $25 000.Which of the following statements is false?

An option to purchase agreement is:

Distinguish between a bailment for value and a voluntary bailment.

A second or third mortgagee is not affected if the first mortgagee obtains an order of foreclosure.

Life estates are another way of describing landlord and tenant relationships.

When a person has the right to go across land to get to another location,this is referred to as what?

A judicial sale does not affect a mortgagor's right to redeem the property.

Which of the following is the correct definition of a chattel?

A finder has no obligation to return found goods to the proper owner.

Old Uncle Isaac has a cold and has become very morbid,talking continuously about funerals,death,and wills.Now he asks about life estates and wills; should he give his wife,Juliet,a life estate? Which of the following is a true statement about wills and life estates?

Which of the following statements is correct with respect to bonding?

For the purposes of vicarious liability and authority to contract,an insurance broker can still be considered an agent of the insurer when it appears to the insured that the broker represents the insurance company.

An all-risk insurance policy is likely to contain exclusions.

With respect to the land titles system of registering interests in land,which one of the following is true?

Marian met with the owner of a warehouse and contracted for factory space for a two-year term.The amount to be paid ($2400 yearly) and the premises were made clear,but nothing else was discussed.The law,however,implies some terms.Which of the following is a term of the contract?