LEGL 2700 Chapter Notes - Chapter 7: Capital Formation, Intangible Property, Tangible Property
25 Feb 2018
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For the property system to function most effectively in promoting prosperity, it should be applied according to the rule of law (it should be applied generally and equally to everyone) Incentives: prosperity- by establishing the conditions necessary for capital formation (quality of resources that produces new/different resources) --> turning illiquid asset into liquid asset (ex. Cash: mortgage: borrowing money agreement to put up their houses to secure the loans. Intellectual property: private property does the best job at allocating scarcity, private property does the best job at promoting prosperity and making new resources. Gunton"s daughters get the land but only for agricultural purposes; they don"t last forever (puts a deadline on these conditions) Live and existence: fee simple came from england. Life estate is called present interest: after life estate has been used, then it turns into a fee simple. Leasehold estate: property right granted to tenants by a landlord: definite duration (ex.
