Mr. Manning has owned a restaurant for forty years. He is in the process of selling his business to a group of investors who plan on revamping the restaurant and turning it into a destination. In the negotiation of the sale, Mr. Manning has stipulated he is willing to accept their offer on two conditions: There may never be any alcohol served on the property, and there can never be dancing of any kind. Mr. Manning is insistent on these conditions due to his religious beliefs. If either of these activities ever takes place, Mr. Manning would have the right to take back the property. Which type of estate applies?

Question

Mcknight

Business

24 May, 17:05

Mr. Manning has owned a restaurant for forty years. He is in the process of selling his business to a group of investors who plan on revamping the restaurant and turning it into a destination. In the negotiation of the sale, Mr. Manning has stipulated he is willing to accept their offer on two conditions: There may never be any alcohol served on the property, and there can never be dancing of any kind. Mr. Manning is insistent on these conditions due to his religious beliefs. If either of these activities ever takes place, Mr. Manning would have the right to take back the property. Which type of estate applies?

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Answers (1)

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Zachariah Rowe · Answer 1

Fee Simple Defeasible

Explanation:

Fee Simple Defeasible -

It refers to the type of deal for the conveyance of the property where certain terms and conditions are applied, is referred to as fee simple defeasible.

The owner has the right to place any conditions before selling it, and violating the condition is considered to be an illegal practice, where the property can even go back to the original owner or to any third party.

Hence, from the given scenario of the question,

The correct answer is fee simple defeasible.