BLAW DECK Flashcards
(32 cards)
What is a chattel?
A moveable item of personal property not affixed to land (e.g., furniture, vehicles).
What is real property?
Land and anything permanently attached to it, including buildings and fixtures.
What is a chose in action?
An intangible legal right enforceable by legal action (e.g., a right to be paid money).
What is the Torrens system?
A land registration system where ownership is determined by the register. The register is conclusive proof of title.
What does ‘indefeasibility of title’ mean?
Once registered, an owner’s title is protected from most claims unless fraud or a limited exception applies.
What is a leasehold estate?
A right to occupy land temporarily under a lease. It ends after the agreed period.
What is a life estate?
A right to use land for the duration of a person’s life. It ends at their death.
What is a stratum estate?
Ownership of a specific unit (e.g., apartment) with shared ownership of common areas, under the Unit Titles Act 2010.
Who is a settlor?
A person who creates a trust and transfers property to a trustee for the benefit of beneficiaries.
Who is a trustee?
A person who legally manages trust property on behalf of beneficiaries.
Who is a beneficiary?
A person entitled to benefit from a trust.
Who is the mortgagor?
The borrower who uses their land as security for a loan.
Who is the mortgagee?
The lender (e.g., a bank) who holds a registered interest over the borrower’s land.
What is taonga?
A treasured item of cultural or spiritual value to Māori, protected under the Treaty of Waitangi.
What is a partnership?
A business carried out by two or more people in common with a view to profit. No separate legal personality.
What is a company?
A separate legal entity that can own property, sue, be sued, and gives shareholders limited liability.
Advantages of a company over a partnership?
Limited liability, separate legal identity, easier to raise capital, ongoing succession.
What is the duty to act in good faith? Directors
Directors must act in the best interests of the company.
What is reckless trading?
Running a business knowing there’s a substantial risk of serious loss to creditors.
What is the duty of care?
Directors must act with reasonable care, diligence, and skill.
What happens if directors breach their duties?
They may be personally liable, especially in insolvency situations.
What is the oppression remedy?
Allows shareholders to challenge unfair or oppressive conduct by the majority.
What is a derivative action?
A shareholder can sue on behalf of the company when directors won’t act.
What are pre-emptive rights?
Existing shareholders get first opportunity to buy new shares.
