Essay Section
Property l
Professor Bernhardt
Page 1 of 1

Part II


1. This part constitutes 1/3 of the exam. There is one essay question which you must answer.

2. Read the facts carefully. Answers based on incorrect facts are treated as incorrect answers. If you think that important facts are missing or ambiguously stated, make reasonable and explicit assumptions about them. Do not make assumptions that make the entire problem vanish! Abbreviate where appropriate. Write legibly. I will not read illegible answers.

***

Harry & Wanda own a vacation home in Southern California, but they no longer use it. They hold title to it as "Harry and Wanda, husband and wife." Last year, Harry ran short of funds and so, without telling Wanda, he leased the home to Tom for a three year term for $1000 per month. The lease restricted the premises to residential use and also required Harry's consent to any transfer by Tom.

A few months later - without telling Harry - Tom transferred the premises to Alan. Tom and Alan signed a document which stated: "Tom hereby sublets the premises to Alan for the balance of Tom's lease term with Harry; Alan agrees to pay Tom $1200 per month, and to honor the covenants in Tom's lease with Harry. " However, shortly after that, Alan converted the residence into a coffee house and began missing rent payments, which led to Tom's not paying Harry.

Harry has spoken to Tom and Alan about this. Tom claims he is not in breach of the lease because it is unenforceable since Wanda never signed it, as she was required to do. He says the lease is off for that reason and that Harry owes him his security deposit back.

Alan says that the provisions in Harry's lease bind Tom, but not him, since he never signed that lease. He says only Tom can go after him.

Harry comes to you for advice. He wants to know what remedies he has against Tom or Alan. He hasn't told Wanda any of this and wants to know if telling her and having her join in will help his case against Tom or Alan?

(Note, notice that I have not asked you about any remedies Tom and Alan may have against each other; those are not questions you need to answer.)