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| Real estate/ fixed property that can't be moved. Ex: Trees on a piece of property are immovable property/ real property. |
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| Anything that is not real estate; commonly described as movable property. Ex: A car would be considered personal property. |
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| Another name for personal property. Ex: If I received a letter in the mail, that would be my personal property, also known as chattel. |
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| Items of personal property that have become so attached to the real property that they become part of the real estate. Ex: Jeff buys a new sink, bolts it to the wall and runs water pipes to it. It is a fixture (was oncer personal property but as been affixed to the real estate so that it has become real property). |
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| Property that can be physically touched. Ex: A car. |
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| Property that can't be physically touched. Ex: A contract cannot be physically touched, but it has value and has enforceable rights-- it is intangible (even if written). |
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| Refers to something that is incomplete. It is something that has begun but is not yet finished. Ex: Jeff signs a contract, but until it is performed, it is inchoate. |
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| The right to sue for recovery of money or things. Ex: Anne owes Jeff $3,500. Jeff offers to transfer the $3,500 chose in action (right to sue and collect the money). |
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| An obligation or interest in property which is given as security for the repayment of a debt or for the performance of some other obligation. Ex: When the banks gives Jeff a loan of $10,000, they also take a lien on his IBM stock. If Jeff doesn't repay the loan, the bank can sell the lien and apply the proceeds to pay off the loan. |
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| The property which is pledged as security for the repayment of a loan or other obligation. Ex: Jeff grants the bank a lien on his IBM stock. The stock is the collateral in exchange for the loan. |
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| The contract that actually grants the lien in the secured property. Ex: When Jeff pledged his IBM stock to the bank for a loan, he signed a security agreemen which created the lien on the stock. |
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| A security agreement that is made under a set of laws called the Uniform Commercial Code. Ex: Jeff borrows $10,000 and gives personal property as collateral. Along with a security agreement, he signs a one-page financing statement, it is made a public record, which evidences the security interest in the property. |
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| The temporary transfer of possession of personal property, without transfering ownership. Ex: Jeff parks his car in a garage and gives his keys to the parking attendant. The garage is holding his car under bailment. |
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| A method of registering an idea about a manufacturing process or item, thereby gaining government protection so that others can't copy and use that concept. Ex: An inventor of a new auto engine that is worth billions obtains a patent from the government for it. |
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| A stylized word, symbol, or device that is used by a manufacturer to identiy and advertise a product. Ex: The golden arches are the McDonald's company trademark. |
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| Protection given to written ideas or artistic works. Ex: When a book is copyrighted, no one else can copy, quote from, or use material from a book without the author's consent. |
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| A document representing something of value that can be transferred from one person to another much like a money substitute. Ex: A check is a negotiable instrument. |
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| A written instrument that orders a second person to pay a third person a specified sum of money. Ex: An ordinary check. |
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| A document in which a person unconditionally promises to pay someone a specified sum of money on demand or at a future date. Ex: Jeff promises Anne to pay her $10,000 by December 31, so he writes her a promissory note which states that he will do just that. |
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Definition
| Another word for negotiable instruments. Ex: A check is commerical paper. |
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| Indorsement (endorsement) |
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| A signature placed on the back of a commericial instrument so that the instrument can be transferred (negotiated). Ex: When I get a check from someone that I babysit for, I must endorse (sign) it before I deposit to into the bank. |
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| The person who executes a promissory note. Ex: Jeff gives Anne a promissory note, promising to pay her within 6 months. Jeff is the maker. |
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| A person who executes a draft. Ex: Jeff writes a check; he is the drawer. |
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| The person who will be paid under a negotiable instrument. Ex: Anne receives a check after babysitting; she is the payee. |
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| The person who will be making payment under a draft. Ex: Jeff has a checking account with Wells Fargo. Jeff writes a check to Anne. Wells Fargo is the drawee-- the one who was ordered to make a payment. |
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| A person who receives commericial paper and is able to freely negotiate it. Ex: Someone who has parted with something of value, in good faith. |
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| A side agreement whereby a person will answer for the debt or performance of another. Ex: Jeff, Anne's father, signs a guaranty when Anne signs a long-term lease on an office building, because Anne is not financially strong enough to handle the lease, and if she defaults, Jeff promises to make the rest of the payment. |
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| Two meanings: 1) Means that an obligation will have a guaranty. 2) Refers to the person to whom the guaranty is made. Ex: 1) Jeff tells the landlord, "Don't worry, I guarantee my daughter's lease obligation: he is stating that he agrees to a guaranty. 2) The landlord is the guarantee/ the party who benefits from the guaranty. |
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Definition
| Part of the main agreement where a person will answer for the debt of another (in CA, same as guaranty). Ex: Jeff, Anne's father, signs a suretyship when Anne signs a long-term lease on an office building, because Anne is not financially strong enough to handle the lease, and if she defaults, Jeff promises to make the rest of the payment. |
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