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Question 1
Curly leases Whiteacre from Moe for three years at the rental rate of $1,000 per month. During year 2, Curly and Larry agree that Larry will take over the rest of the lease from Curly and will pay the rent to Moe. With whom is Larry in privity of estate?
Correct When an assignment of a leasehold is made, the assignee steps into the shoes of the tenant and thus is in privity of estate with the landlord. This is because the landlord's future interest (Moe's) immediately follows the assignee's interest (Larry's).
Incorrect! When an assignment of a leasehold is made, the assignee steps into the shoes of the tenant and thus is in privity of estate with the landlord. This is because the landlord's future interest (Moe's) immediately follows the assignee's interest (Larry's).
Correct
Incorrect!
Correct
Incorrect!
Correct
Incorrect!
Question 2
Curly leases Whiteacre from Moe for three years at the rental rate of $1,000 per month. During year 2, Curly and Larry agree that Larry will take over the rest of the lease from Curly and will pay the rent to Moe. With whom is Curly in privity of estate?
Correct
Incorrect!
Correct
Incorrect!
Correct
Incorrect!
Correct Once Curly assigned his lease to Larry, he completely gave up his interest in Whiteacre. Therefore, he is no longer in privity of estate with either party.
Incorrect! Once Curly assigned his lease to Larry, he completely gave up his interest in Whiteacre. Therefore, he is no longer in privity of estate with either party.
Question 3
Curly leases Whiteacre from Moe for three years at the rental rate of $1,000 per month. During year 2, Curly and Larry agree that Larry will take over the rest of the lease from Curly and will pay the rent to Moe. Larry defaults on the rent. Who can Moe sue due to Larry's failure to pay the rent?
Correct
Incorrect!
Correct
Incorrect!
Correct This is a tricky one. The key part of the questions is that it does not ask who Moe can sue for rent money. A landlord can only sue someone with whom he or she is in privity of estate for rent money. However, Curly and Moe are still in privity of contract, which means that Curly is contractually obligated to make sure that Moe gets his rental money. Therefore, if Larry defaults, Moe can sue Curly for breach of contract, even if not directly for the rental money.
Incorrect! This is a tricky one. The key part of the questions is that it does not ask who Moe can sue for rent money. A landlord can only sue someone with whom he or she is in privity of estate for rent money. However, Curly and Moe are still in privity of contract, which means that Curly is contractually obligated to make sure that Moe gets his rental money. Therefore, if Larry defaults, Moe can sue Curly for breach of contract, even if not directly for the rental money.
Correct
Incorrect!
Question 4
Curly leases Whiteacre from Moe for three years at the rental rate of $1,000 per month. During year 2, Curly and Larry agree that Larry will take over the lease from Curly and will pay the rent to Moe for the next 6 months. During those 6 months, Larry claims that certain housing code rules have been broken with respect to the property, and he wants to enforce the housing code. Against whom may he bring a lawsuit to enforce the housing code?
Correct
Incorrect!
Correct A party looking to enforce obligations of the landlord can only enforce those obligations against a party with whom he or she is in privity of estate. In this case, Curly has sublet Whiteacre to Larry for 6 months. Since Curly's interest in Whiteacre follows Larry's interest (before Whiteacre eventually reverts to Moe), Larry and Curly are in privity of estate. However, Larry and Moe are not in privity of estate. Therefore, Larry can only enforce the housing code against Curly.
Incorrect! A party looking to enforce obligations of the landlord can only enforce those obligations against a party with whom he or she is in privity of estate. In this case, Curly has sublet Whiteacre to Larry for 6 months. Since Curly's interest in Whiteacre follows Larry's interest (before Whiteacre eventually reverts to Moe), Larry and Curly are in privity of estate. However, Larry and Moe are not in privity of estate. Therefore, Larry can only enforce the housing code against Curly.