B LAW403 Lecture Notes - Lecture 1: Intangible Asset, Fiduciary, Security Interest
11 Jan 2017
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B-Law 403 Midterm Study Guide
Bill of Exchange Act
- Common Law
- Establishes what is binding and acceptable methods of payment
Sale of Goods Act
- Common Law
- Laws of someone purchasing a tangible good (personal property)
Ascent of Money:
- Creditor has faith in being paid bank requires certain laws, protections and beliefs in
money itself
- Critical Foundation in creditor and debtor
- Growth of economy relies on giving creditors assurance and legitimizing it
Types of Property
- Real Property
o Land or anything attached to land
- Persoal Propert Chattel
o Moveable
o Intangible → in action
▪ Corporate share
▪ No title passed with pure intangible
▪ License Fishing license (Saulner V. Royal Bank)
▪ Collateral mortage
o Tangible
▪ Bill of Lading
• Piece of paper that establishes ownership; whoever has it has
possession
Collateral
- Property subjected to security interest in exchange for credit
Bundle of Rights:
- Ownership
o has full possession (use and abuse)
o Right in the asset itself
o Invisible only a single owner
o Legal and equitable ownership
▪ Fariness
- Co Ownership
o Tenants in Common
▪ Right to sell share of asset without permission
▪ Half interest in the whole → a’t just split asset
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• Agree on severance for half
• If agreeet is’t reahed go to ourt
• Judge can grant severance
• Best solution is to put terms in contract to resolve
o Joint Tenants
▪ Need all owners signature to do something
▪ “uriorship rights Ca’t leae propert to aoe
- Security Interest
o Righted property to a lender to guarantee payment and prevent loss
o Oligatio or harge →No right currently but if default have ownership
- Lease
o Contractual terms negotiated between owner and a lease
- License
o Revocable letting someone use an asset for a specified period of time
- Trust
o Trustee dealing with Beneficiary; hold onto something on behalf of
beneficiary
o Have fiduciary duty to beneficiary
o Trustee is legal owner at all times
Possession
- Exercise of control and the intention to possess
- Trespass to good
o Good is ot as good after eig orroed
- Tort of conversion
o Interferences so extensive good is essentially useless
▪ Can go to court to make forced sale
- Tort of Detinue
▪ I believe I am better owner
Transferring Possession
- Bailment → Duty of Care
o License handed over for particular use
o Establish who benefits in the lease
▪ If I lend you tools and you break them, you owed a duty of care to the
tools because it was to your benefit
▪ If I store tools for you and they get wrecked in the flood I DO NOT
owe a duty of care because you were benefiting from the lease
o High duty of care when there is payment
▪ Hotels, Inn keepers, Mail carriers
- Involuntary Bailment
o Part does’t ko the hae the good
o Lowest amount of care required
- Constructive Possession
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find more resources at oneclass.com
