Ace and Loretta Were Neighbours

question 24

Multiple Choice

Ace and Loretta were neighbours.He owned Blackacre and she owned Whiteacre.They purportedly created a restrictive covenant under which she promised that she would not build a pool in her backyard, and that she would prune her trees on an annual basis.Loretta sold Whiteacre to Moira.Moira wants to build a pool in her backyard and she refuses to prune her trees.Which of the following statements is TRUE?

• A)Because a restrictive covenant runs with the land, Moira cannot build a pool and must prune her trees.
• B)Moira is bound by the restrictive covenant, at least in part, even if she did not have any way of knowing about it when she bought Whiteacre from Loretta.
• C)Moira may be prohibited from building a pool, but she cannot be required to prune her trees.
• D)Ace cannot possibly enforce the restrictive covenant against Moira because she was not a party to the contract that created the restrictive covenant.
• E)Ace can enforce the restrictive covenant against Moira only if he provided consideration to her after she purchased Whiteacre from Loretta.

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Definitions:

GDP Deflator

An economic measure that converts output measured at current prices into constant-dollar terms, helping to distinguish between real growth and inflation.

Inflation

The tempo at which the cost of general goods and services escalates, undermining the ability to purchase as time progresses.

Expenditures Approach

A method of computing a country's gross domestic product (GDP) by adding up total consumption, investment, government spending, and net exports.

GDP

Gross Domestic Product, a measure of the economic output of a country within a specified period of time.