1. 3-20-17 National Ravioli Day
PROPERTY A SLIDES
National Ravioli Day

2. On Course Page for Chapter 3
Monday March 20 Music to Accompany EFI Problems: Wynton Marsalis, Trumpet Classic Wynton (1998)
On Course Page for Chapter 3
General Info on Test Logistics (E- Mail if Qs)
Some Sample Exam Qs & Answers (Rest Posted After Class Tomorrow)
From Test Itself: Instructions Page & Attached Version of Syllabus
On Course Page for Ch. 4 & 5
Supplemental Materials
Updated Syllabus
Updated Assignment Sheet (thru 3/30)
I’ll Post on Face of Page Later Today: Assignments for Thursday, Friday, Tuesday

3. ADDITIONAL LOGISTICS Prep for Chapter 3 Test On Course Page
Additional Comments/Best Answers for Exam Qs Testing Chapters 1 & 2
Entry Form/Instructions for MARC MADNESS
Annual NCAA Sweet 16 Pool
Winner from This Section Gets Dinner
No Knowledge Needed to Play
Prep for Chapter 3 Test
Extended Office Hours Every Day from Today  Sunday
Listed on Course Page
Just Come In (No Secret Qs)
Sat/Sun in 2d Floor Library Classroom
Sunday 7pm Deadline for Reasonable Qs

4. The Origin of Reese’s PEANUT BUTTER EGGS
PROPERTY A: 3/20
MONDAY Pop Culture Moment
The Origin of
Reese’s PEANUT BUTTER EGGS

5. MONDAY Pop Culture Moment
PROPERTY A: 3/20
MONDAY Pop Culture Moment
The Origin of
Reese’s PEANUT BUTTER EGGS:
A LAWYERLY INQUIRY &
SIMULATION

6. Previously in Property A: Chapter 3 Distinctions You Should Know
Basics:
Present Possessory Estates v. Future Interests
Fee Simple v. Finite Present Estates
Common Law v. Today
We’ll Review Now:
Reversions v. Remainders
Vested v. Contingent Remainders
Remainders v. Executory Interests
We’ll Review Before Doing Problem 3I : Determinable v. on Condition Subsequent

7. WARM-UP/REVIEW (Mostly from 3/9 Class): Key Ideas/Terms to Set Up Problems 3L-3N
Reversion v. Remainder
REVERSION: Future interest implicitly retained by grantor when s/he conveys a finite estate without indicating who will have rights when it expires.
REMAINDER: Future interest in a third party that follows naturally upon the termination of a finite estate. It is always expressly conveyed by the grantor.

8. WARM-UP/REVIEW (Mostly from 3/9 Class): Key Ideas/Terms to Set Up Problems 3L-3N
VESTED Remainder IF:
Grantee is living ascertainable person AND
Clause creating the remainder contains no condition on grantee taking the property except expiration of prior estate.
CONTINGENT Remainder I IF:
Grantee is presently unborn or unascertainable OR
Clause creating the remainder contains an explicit condition on grantee taking the property.

9. Remainder v. Executory Interest
WARM-UP/REVIEW (Mostly from 3/9 Class): Key Ideas/Terms to Set Up Problems 3L-3N
Remainder v. Executory Interest
REMAINDER: Future interest in a third party that follows naturally upon the termination of a finite estate.
EXECUTORY INTEREST: Future interest in a third party that cuts off a prior vested interest (present estate or reversion or vested remainder) rather than waiting for it to expire naturally.

10. Shifting v. Springing Executory Interests
WARM-UP/REVIEW (Mostly from 3/9 Class): Key Ideas/Terms to Set Up Problems 3L-3N
Shifting v. Springing Executory Interests
No legal consequence; just categorization.
Shifting Executory Interest cuts off interest of another grantee.
To Danny & his heirs so long as no tobacco is grown on the land, otherwise to Arturo and his heirs.
Springing Exec. Interest cuts off grantor’s fee simple or reversion.
To Yujia & her heirs if she passes the California Bar Exam. S(Would cut off grantor’s fee simple).

11. WARM-UP/REVIEW (Mostly from 3/9 Class): Key Ideas/Terms to Set Up Problems 3L-3N
Alternative Contingent Remainders
Two contingent remainders for which the event that causes one to vest will destroy the other.
Example: To K for life,
then to L and her heirs if she graduates from law school,
but if she never graduates from law school, then to M and her heirs.
Here, only two possibilities:
EITHER (1) L will graduate from law school (and would then take)
OR (2) she will die before graduating from law school (M would then take)

12. WARM-UP/REVIEW (Mostly from 3/9 Class): Key Ideas/Terms to Set Up Problems 3L-3N
Alternative Contingent Remainders
Two contingent remainders for which the event that causes one to vest will destroy the other.
Example: To K for life,
then to L and her heirs if she graduates from law school,
but if she never graduates from law school, then to M and her heirs.
When Alternative Contingent Remainders Created,
Grantor Always Retains a Reversion

13. Vested Remainder Subject to Divestment
WARM-UP/REVIEW (Mostly from 3/9 Class): Key Ideas/Terms to Set Up Problems 3L-3N
Vested Remainder Subject to Divestment
Vested Remainder followed by an Executory Interest that could cut off the remainder before it becomes possessory.
E.g., Kramer’s interest in (3K):
“To George for life, then to Kramer and his heirs; but if Kramer does not attain the age of 21, then to Elaine and her heirs."

14. WARM-UP/REVIEW (Mostly from 3/9 Class): Key Ideas/Terms to Set Up Problems 3L-3N
(1) Alternative Contingent Remainders v.
(2) Vested Remainder Subject to Divestment
O “to A for life, then to B & her heirs if she turns 21, but if B dies before 21, then to C and his heirs.” (Also Creates Reversion in O).
(2) O “to A for life, then to B & her heirs, but if B dies before 21, then to C & his heirs.” (No Reversion in O)

15. New Material: Problems 3L-3N
Everglades: Problem 3L
THEN Sequoia: Problem 3M & Badlands: Problem 3N
Hold Qs Until We’ve Worked Through All Three

16. Everglades (3L): Daffy "to Tweety for life, then to such of Tweety's children as survive him, but if none of Tweety's children survives him, then to Peggy and her heirs." Tweety has 2 children, Heckle and Jeckle.
Tweety: ?

17. Tweety: Life Estate Tweety’s Children?
Everglades (3L): Daffy "to Tweety for life, then to such of Tweety's children as survive him, but if none of Tweety's children survives him, then to Peggy and her heirs." Tweety has 2 children, Heckle and Jeckle.
Tweety: Life Estate
Tweety’s Children?

18. Everglades (3L): Daffy "to Tweety for life, then to such of Tweety's children as survive him, but if none of Tweety's children survives him, then to Peggy and her heirs." Tweety has 2 children, Heckle and Jeckle.
Tweety: Life Estate
Tweety’s Children: Contingent Remainder (in f.s.) (Must Survive Tweety)
Peggy?

19. Everglades (3L): Daffy "to Tweety for life, then to such of Tweety's children as survive him, but if none of Tweety's children survives him, then to Peggy and her heirs." Tweety has 2 children, Heckle and Jeckle.
Tweety: Life Estate
Tweety’s Children: Contingent Remainder (in f.s.)
Peggy: Alternative Contingent Remainder (in f.s.): Only 2 Possibilities:
Tweety survived by children (who take)
Tweety not survived by children (Peggy takes)

20. Everglades (3L): Daffy "to Tweety for life, then to such of Tweety's children as survive him, but if none of Tweety's children survives him, then to Peggy and her heirs." Tweety has 2 children, Heckle and Jeckle.
Tweety: Life Estate
Tweety’s Children: Alternative Contingent Remainder (in f.s.)
Peggy: Alternative Contingent Remainder (in f.s.)
Anything Else?

21. Daffy: Reversion (even when alternate contingent remainders)
Everglades (3L): Daffy "to Tweety for life, then to such of Tweety's children as survive him, but if none of Tweety's children survives him, then to Peggy and her heirs." Tweety has 2 children, Heckle and Jeckle.
Tweety: Life Estate
Tweety’s Children: Contingent Remainder (in f.s.)
Peggy: Alternative Contingent Remainder (in f.s.)
Daffy: Reversion (even when alternate contingent remainders)

22. Everglades (3L): Daffy "to Tweety for life, then to such of Tweety's children as survive him, but if none of Tweety's children survives him, then to Peggy and her heirs."
Tweety: Life Estate
Tweety’s Children: Alternative Contingent Remainder (in f.s.)
Peggy: Alternative Contingent Remainder (in f.s.)
Daffy: Reversion (even when alternate contingent remainders)

23. SEQUOIA: Problem 3M
SEQUOIAS

24. Sequoia (3M): Amanda "to Billy for life, then to Billy's children and their heirs, but if at Billy's death he is not survived by any children, then to Jo and her heirs." Billy has no children.
Billy: ?

25. Billy: Life Estate Billy’s children: ?
Sequoia (3M): Amanda "to Billy for life, then to Billy's children and their heirs, but if at Billy's death he is not survived by any children, then to Jo and her heirs." Billy has no children.
Billy: Life Estate
Billy’s children: ?

26. Billy’s children: Contingent Remainder (in f.s.) (Unborn) Jo: ?
Sequoia (3M): Amanda "to Billy for life, then to Billy's children and their heirs, but if at Billy's death he is not survived by any children, then to Jo and her heirs." Billy has no children.
Billy: Life Estate
Billy’s children: Contingent Remainder (in f.s.) (Unborn)
Jo: ?

27. Alternative Contingent Remainders
Two contingent remainders for which the event that causes one to vest will destroy the other.

28. Sequoia (3M): Amanda "to Billy for life, then to Billy's children and their heirs, but if at Billy's death he is not survived by any children, then to Jo and her heirs." Billy has no children.
When does contingent remainder in B’s children vest?

29. Sequoia (3M): Amanda "to Billy for life, then to Billy's children and their heirs, but if at Billy's death he is not survived by any children, then to Jo and her heirs." Billy has no children.
Contingent remainder in B’s children vests when a child of B’s is born.
When does contingent remainder in Jo vest?

30. Sequoia (3M): Amanda "to Billy for life, then to Billy's children and their heirs, but if at Billy's death he is not survived by any children, then to Jo and her heirs." Billy has no children.
Contingent remainder in B’s children vests when a child of B’s is born.
Contingent remainder in Jo vests when Billy dies survived by no children.
Is the interest in Jo destroyed when the interest in the children vests?

31. Jo: Contingent Remainder (in f.s.) (Not alternate) Anything Else?
Sequoia (3M): Amanda "to Billy for life, then to Billy's children and their heirs, but if at Billy's death he is not survived by any children, then to Jo and her heirs." Billy has no children.
Billy: Life Estate
Billy’s children: Contingent Remainder (in f.s.)
Jo: Contingent Remainder (in f.s.) (Not alternate)
Anything Else?

32. Sequoia (3M): Amanda "to Billy for life, then to Billy's children and their heirs, but if at Billy's death he is not survived by any children, then to Jo and her heirs." Billy has no children.
Billy: Life Estate
Billy’s children: Contingent Remainder (in f.s.)
Jo: Contingent rem. (in f.s.) (Not alternate)
Amanda: Reversion

33. Sequoia (3M): Amanda "to Billy for life, then to Billy's children and their heirs, but if at Billy's death he is not survived by any children, then to Jo and her heirs." Billy has no children.
Billy: Life Estate
Billy’s children: Contingent Rem. (in f.s.) (unborn)
Jo: Contingent Rem. (in f.s.) (Not Alternative)
Amanda: Reversion

34. Billy: Life Estate Sydney?
Sequoia (3M): Amanda "to Billy for life, then to Billy's children and their heirs, but if at Billy's death he is not survived by any children, then to Jo and her heirs." Billy has a child, Sydney.
Billy: Life Estate
Sydney?

35. Sydney: Vested Remainder (in f.s.) …
Sequoia (3M): Amanda "to Billy for life, then to Billy's children and their heirs, but if at Billy's death he is not survived by any children, then to Jo and her heirs." Billy has a child, Sydney.
Billy: Life Estate
Sydney: Vested Remainder (in f.s.) …
Subject to Open (B can have more children) …
Subject to Divestment (interest lost if none of B’s children survive B)
Jo?

36. Sequoia (3M): Amanda "to Billy for life, then to Billy's children and their heirs, but if at Billy's death he is not survived by any children, then to Jo and her heirs." Billy has a child, Sydney.
Billy: Life Estate
Sydney: Vested Remainder (in f.s.) Subject to Open, Subject to Divestment
Jo: Shifting Executory Interest (in f.s.) (would cut off vested remainder)
Amanda?

37. Sequoia (3M): Amanda "to Billy for life, then to Billy's children and their heirs, but if at Billy's death he is not survived by any children, then to Jo and her heirs." Billy has a child, Sydney.
Billy: Life Estate
Sydney: Vested Remainder (in f.s.) Subject to Open, Subject to Divestment
Jo: Shifting Executory Interest (in f.s.) (would cut off vested remainder)
Amanda: Nothing (Reversion divests when 1st contingent remainder vests)

38. Significance: Alt. Contingent Remainders (1) v
Significance: Alt. Contingent Remainders (1) v. Vested Remainder Subject to Divestment (2)
To A for life, then to B & her heirs if she turns 21, but if B dies before 21, then to C and his heirs. Reversion in O.
(2) To A for life, then to B & her heirs, but if B dies before 21, then to C & his heirs. (No Reversion in O)

39. Significance: Alt. Contingent Remainders (1) v
Significance: Alt. Contingent Remainders (1) v. Vested Remainder Subject to Divestment (2)
(1) To A for life, then to B & heirs if she turns 21, but if B dies before 21, then to C & heirs. Reversion in O.
(2) To A for life, then to B & her heirs, but if B dies before 21, then to C & his heirs.
Both 1+2: If A alive & B dies at 14:
B gets Nothing;
C gets fee simple at A’s death

40. Significance: Alt. Contingent Remainders (1) v
Significance: Alt. Contingent Remainders (1) v. Vested Remainder Subject to Divestment (2)
(1) To A for life, then to B & heirs if she turns 21, but if B dies before 21, then to C & heirs. Reversion in O.
(2) To A for life, then to B & her heirs, but if B dies before 21, then to C & his heirs.
Both 1+2: If A alive & B turns 21:
B has vested remainder
C’s interest fails

41. Significance: Alt. Contingent Remainders (1) v
Significance: Alt. Contingent Remainders (1) v. Vested Remainder Subject to Divestment (2)
(1) To A for life, then to B & her heirs if she turns 21, but if B dies before 21, then to C and his heirs. Reversion in O.
(2) To A for life, then to B & her heirs, but if B dies before 21, then to C & his heirs.
(1) If A dies & B not yet 21 (if Contigent Remainder):
Conditions not met for either B or C. Remainders either destroyed or become Springing Executory Interests
O takes Fee Simple [on Executory Limitation in Modern View (exc. FL)]

42. Significance: Alt. Contingent Remainders (1) v
Significance: Alt. Contingent Remainders (1) v. Vested Remainder Subject to Divestment (2)
(1) To A for life, then to B & her heirs if she turns 21, but if B dies before 21, then to C and his heirs. Reversion in O.
(2) To A for life, then to B & her heirs, but if B dies before 21, then to C & his heirs.
(2) If A dies & B not yet 21 (if Vested Rem. Subj. to Divmt)
No requirement that B turn 21 to take possession, so B does take possession and has Fee Simple on Executory Limitation.
C still has Shifting Executory Interest that will become possessory if B dies before turning 21.

43. BADLANDS: Problem 3N
NORBECK PASS

44. Badlands (3N): Clark “to Jimmy for life, then to Lois & her heirs, but if Jimmy is survived at his death by any children, then to such surviving children & their heirs. Jimmy has two children, Perry & Della.
Jimmy?

45. Jimmy: Life Estate Lois?
Badlands (3N): Clark “to Jimmy for life, then to Lois & her heirs, but if Jimmy is survived at his death by any children, then to such surviving children & their heirs. Jimmy has two children, Perry & Della.
Jimmy: Life Estate
Lois?

46. Lois: Vested Remainder (in f.s.) Subject to Divestment J’s Children
Badlands (3N): Clark “to Jimmy for life, then to Lois & her heirs, but if Jimmy is survived at his death by any children, then to such surviving children & their heirs. Jimmy has two children, Perry & Della.
Jimmy: Life Estate
Lois: Vested Remainder (in f.s.) Subject to Divestment
J’s Children

47. J’s Children: Shifting Executory Interest (in f.s.) Clark?
Badlands (3N): Clark “to Jimmy for life, then to Lois & her heirs, but if Jimmy is survived at his death by any children, then to such surviving children & their heirs. Jimmy has two children, Perry & Della.
Jimmy: Life Estate
Lois: Vested Remainder (in f.s.) Subject to Divestment
J’s Children: Shifting Executory Interest (in f.s.)
Clark?

48. Badlands (3N): Clark “to Jimmy for life, then to Lois & her heirs, but if Jimmy is survived at his death by any children, then to such surviving children & their heirs. Jimmy has two children, Perry & Della.
Jimmy: Life Estate
Lois: Vested Remainder (in f.s.) Subject to Divestment
J’s Children: Shifting Executory Interest (in f.s.)
Clark: Nothing

49. GRANTS IN (3L) & (3M) & (3N) ALL TRYING TO DO SAME THINGS:
To A for life, then …
If A has any surviving children, they take.
If no surviving children, to B.
BUT The Precise Wording of Each Grant Creates a Slightly Different Set of Interests

50. (3L) & (3M) & (3N) Test Note #4:
Test Will Include Grants Modeled on At Least Two of These Problems. I’ll Ask You to:
Identify the Interests Created; and
Identify the State of the Title as Relevant Parties are Born or Die.

51. (3L) & (3M) & (3N)
QUESTIONS?

52. Remainders & Executory Interests: Additional Information

53. Vested Remainder Subject to Divestment (1) v. Vested Remainder in F. S
Vested Remainder Subject to Divestment (1) v. Vested Remainder in F.S. subj. to Exec. Lim. (2)
(1) To A for life, then to B & her heirs, but if B dies before turning 21, then to C & his heirs.
Condition might occur before B obtains possession.

54. Vested Remainder Subject to Divestment (1) v. Vested Remainder in F. S
Vested Remainder Subject to Divestment (1) v. Vested Remainder in F.S. subj. to Exec. Lim. (2)
(1) To A for life, then to B & her heirs, but if B dies before turning 21, then to C & his heirs.
Condition might occur before B takes possession.
(2) To A for life, then to B & her heirs, but if B ever uses the land for commercial purposes, to C & his heirs.
Condition is a limit on B’s use of the land and cannot occur before B takes possession.

55. TERMINOLOGY: ME v. WORKBOOK
To A for life, then to B & her heirs, but if B dies before turning 21, then to C & his heirs.
Condition might occur before B takes possession, but also might occur after.
WORKBOOK (p93): Vested Remainder Subject to Divestment in Fee Simple on Executory Limitation.
ME: Phrase in italics is accurate but unnecessary. In multiple choice answers, I will simply call this interest a Vested Remainder Subject to Divestment (as long as it might occur before possession).

56. REVIEW: DEFEASIBLE FEES & DEFEASIBLE FINITE PRESENT ESTATES

57. DEFEASIBLE FEES: Two Relevant Distinctions
Who holds future interest?: Grantor v. Grantee
Automatic termination v. Needs action by future interest holder
Yields Following Flow Chart

58. FLOW CHART: IDENTIFYING DEFEASIBLE FEES58

59. FLOW CHART: IDENTIFYING DEFEASIBLE FEES59

60. FLOW CHART: IDENTIFYING DEFEASIBLE FEES60

61. TERMINOLOGY: ME v. WORKBOOK (Reminder)
Defeasible fee in form of a Fee Simple Determinable BUT with the future interest in third party:
Me (& Restatement & You on Test): “Fee Simple on Executory Limitation”
Workbook: “Fee Simple Determinable” (See Workbook p.72 fn19)

62. Review: Accessorizing Defeasible Fees & Matching Future Interests
FEE SIMPLE DETERMINABLE & Possibility of Reverter
F.S. ON CONDITION SUBSEQUENT & Right of Re[Entry]
F.S. ON EXECUTORY LIMITATION & Executory Interest

63. Review: Examples of Defeasible Finite Estates
Term of Years on Condition Subsequent:
“To Rohan for 20 years, but if he ever passes the bar exam, I can enter & retake.”
Life Estate on Executory Limitation
“To Shane for life, but to Steven & his heirs if Steven ever passes the bar exam.”

64. REVIEW Defeasible Finite Estates & Matching Future Interests
Defeasible Finite Estates Necessarily Create Two Future Interests
One cuts off the finite estate if the condition is met
One follows at the end of the finite estate if it terminates naturally (i.e., if the condition is not met).
If One Person Holds Both of These Future Interests, They Will Merge Into the “Larger” Interest

65. REVIEW Defeasible Finite Estates & Matching Future Interests
Defeasible Finite Estates Necessarily Create Two Future Interests
If One Person Holds Both of These Future Interests, They Will Merge Into the “Larger” Interest
Example (3H): Thelma conveys “To Louise for 99 Years if Louise so long live."
Louise: Term of years determinable.
Thelma: Possibility of Reverter plus Reversion  Reversion (Merger)
(Merger captures idea that T will end up with land eventually no matter what.)

66. Defeasible Finite Estates & Matching Future Interests
Defeasible Finite Estates Necessarily Create Two Future Interests
If One Person Holds Both of These Future Interests, They Will Merge Into the “Larger” Interest
NEW Example (E79):
O “To A for life or until A divorces, then to B"
A: Life Estate on Executory Limitation.
B: Shifting Exec. Int. + Vested Remainder  Vested Rem. (Merger)
(Again, merger captures idea that B will end up with land eventually no matter what.)

67. SEQUOIA: Problem 3I
SEQUOIAS

68. Sequoia: (3I): O conveys "to J and her heirs so long as the premises are not used for sale of beer, wine, or liquor, and if beer, wine, or liquor is sold on the premises, O retains a right to re-enter the premises." `
J opens a restaurant that serves several dishes cooked with wine or flamed with brandy and at Sunday brunch offers a free glass of champagne.
The restaurant is successful, and 11 years after its opening D wants to buy it and add a bar. Advise D.

69. MULTI-STEP ANALYSIS (from Course Page)
Sequoia: (3I): O conveys "to J and her heirs so long as the premises are not used for sale of beer, wine, or liquor, and if beer, wine, or liquor is sold on the premises, O retains a right to re-enter the premises."
MULTI-STEP ANALYSIS (from Course Page)
Corresponds to Plausible Sequence of Multiple Choice Qs
FSD or FSCS?
CONDITION VIOLATED?
EFFECT OF VIOLATION?
ADVICE RE PURCHASE

70. MULTI-STEP ANALYSIS FSD or FSCS?
Sequoia: (3I): O conveys "to J and her heirs so long as the premises are not used for sale of beer, wine, or liquor, and if beer, wine, or liquor is sold on the premises, O retains a right to re-enter the premises."
MULTI-STEP ANALYSIS
FSD or FSCS?
CONDITION VIOLATED?
EFFECT OF VIOLATION?
ADVICE RE PURCHASE

71. Arguments for Each Position?
Sequoia: (3I): O conveys "to J and her heirs so long as the premises are not used for sale of beer, wine, or liquor, and if beer, wine, or liquor is sold on the premises, O retains a right to re-enter the premises."
FSD or FSCS?
Does Orrin’s interest vest automatically (FSD) or does he have to act (FSCS)?
Arguments for Each Position?

72. FSD or FSCS: Arguments Include:
Sequoia: (3I): O conveys "to J and her heirs so long as the premises are not used for sale of beer, wine, or liquor, and if beer, wine, or liquor is sold on the premises, O retains a right to re-enter the premises."
FSD or FSCS: Arguments Include:
“So long as” & condition built into 1st clause suggest FSD
Moment of violation likely pretty clear, so can be FSD
“Right to re-enter” & 2 clauses suggest FSCS
“Retains” suggests FSCS b/c implies that O’s right can be held for some period of time after violation
Most states: Presumption favoring FSCS
Mahrenholz: More like punishment than purpose (suggests FSCS)

73. CONDITION VIOLATED? MULTI-STEP ANALYSIS
Sequoia: (3I): O conveys "to J and her heirs so long as the premises are not used for sale of beer, wine, or liquor, and if beer, wine, or liquor is sold on the premises, O retains a right to re-enter the premises."
MULTI-STEP ANALYSIS
FSD or FSCS? Some Arguments Each Way
CONDITION VIOLATED?
EFFECT OF VIOLATION?
ADVICE RE PURCHASE

74. Does It Violate Condition if J’s Restaurant:
Sequoia: (3I): O conveys "to J and her heirs so long as the premises are not used for sale of beer, wine, or liquor, and if beer, wine, or liquor is sold on the premises, O retains a right to re-enter the premises."
Does It Violate Condition if J’s Restaurant:
Serves several dishes cooked with wine or flamed with brandy?
At Sunday brunch offers complimentary glass of Champagne?

75. MULTI-STEP ANALYSIS EFFECT OF VIOLATION? CONDITION VIOLATED?
Sequoia: (3I): O conveys "to J and her heirs so long as the premises are not used for sale of beer, wine, or liquor, and if beer, wine, or liquor is sold on the premises, O retains a right to re-enter the premises."
MULTI-STEP ANALYSIS
FSD or FSCS?
CONDITION VIOLATED?
No Direct Sale of Liquor for $$$; Cooking Removes Actual Alcohol; Flavored Dishes Maybe Not w/in Intent
BUT: Cost of Alcohol Incorporated in Purchase Price; Diners Buying Alcohol in Meals; Glass of Champagne Maybe w/in Intent
EFFECT OF VIOLATION?
ADVICE RE PURCHASE

76. MULTI-STEP ANALYSIS EFFECT OF VIOLATION?
Sequoia: (3I): O conveys "to J and her heirs so long as the premises are not used for sale of beer, wine, or liquor, and if beer, wine, or liquor is sold on the premises, O retains a right to re-enter the premises."
MULTI-STEP ANALYSIS
FSD or FSCS? (Last Time: Arguments Both Ways)
CONDITION VIOLATED? (Last Time: Arguments Both Ways)
EFFECT OF VIOLATION?
If FSD & Poss. of Reverter?
If FSCS & Rt. of Entry
ADVICE RE PURCHASE

77. J has FSD & O has Possibility of Reverter
Sequoia: (3I): O conveys "to J and her heirs so long as the premises are not used for sale of beer, wine, or liquor, and if beer, wine, or liquor is sold on the premises, O retains a right to re-enter the premises."
Effect of Violation if
J has FSD & O has Possibility of Reverter
O gets legal title at moment of violation.
If sufficient time has passed, J may have title through adverse possession.
Effect of Violation if FSCS & Rt. of Entry?

78. J has FSCS & O has Right of Entry
Sequoia: (3I): O conveys "to J and her heirs so long as the premises are not used for sale of beer, wine, or liquor, and if beer, wine, or liquor is sold on the premises, O retains a right to re-enter the premises."
Effect of Violation if
J has FSCS & O has Right of Entry
Assuming O has not acted, O still has RE
If O is aware of Julia’s use of alcohol, may be held to have waived the right to enforce regarding these kinds of uses of alcohol.

79. MULTI-STEP ANALYSIS ADVICE RE PURCHASE?
Sequoia: (3I): O conveys "to J and her heirs so long as the premises are not used for sale of beer, wine, or liquor, and if beer, wine, or liquor is sold on the premises, O retains a right to re-enter the premises."
MULTI-STEP ANALYSIS
FSD or FSCS?
CONDITION VIOLATED?
EFFECT OF VIOLATION? (depends on FSD or FSCS)
ADVICE RE PURCHASE?

80. (We’ll Start with on Tues 3/21)
Sequoia: (3I): O conveys "to J and her heirs so long as the premises are not used for sale of beer, wine, or liquor, and if beer, wine, or liquor is sold on the premises, O retains a right to re-enter the premises."
J opens a restaurant that serves several dishes cooked with wine or flamed with brandy and at Sunday brunch offers a free glass of champagne.
The restaurant is successful, and 11 years after its opening D wants to buy it and add a bar.
Possible Advice to D?
(We’ll Start with on Tues 3/21)