A Person Who Buys Property That Is Subject to a Restrictive

question 15

Multiple Choice

A person who buys property that is subject to a restrictive covenant is bound by it

• A) only if the seller told him or her about it.
• B) only if it appears in the deed.
• C) only if his or her lawyer told the buyer about it.
• D) none of these.

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Definitions:

Partnership Assets

The resources and property owned by a partnership that are used for conducting its business activities.

Liabilities Priority

The order in which obligations or debts of a company or individual are to be paid if there are insufficient assets to pay all liabilities in full.

Fraudulent Act

refers to any deliberate deception intended to secure an unfair or unlawful gain, or to deprive a victim of a legal right.

Liability to the Partnership

Obligations or debts for which a partnership is responsible, including those incurred by individual partners acting within the scope of their partnership activities.