Teppo Has the Fee Simple to a Piece of Land

question 50

Multiple Choice

Teppo has the fee simple to a piece of land called Blackacre.Laila has a mineral lease that allows her to extract oil from beneath Blackacre.Which of the following statements is TRUE?

• A)Since the courts no longer apply the "giant carrot theory," Laila did not really need a lease in order to legally extract oil from beneath Blackacre.
• B)Laila probably acquired her lease from the Crown.
• C)Teppo can prevent Laila from extracting oil from beneath Blackacre unless he already held the fee simple when she first acquired her lease.
• D)Laila owns the oil in question even if she has not yet built an oil well.
• E)A mineral lease cannot apply to oil,which is not a mineral.

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Definitions:

Personally Liable

The responsibility of an individual to fulfill debt or obligations from their own assets, rather than those of a corporation or entity.

Gross Returns

The total return on an investment before any deductions are made for costs or fees.

Written Agreement

A formalized record of a contract or arrangement between parties, documented in written form.

Legal Pitfalls

Situations or actions that could potentially lead to legal issues or disputes due to non-compliance with laws, regulations, or standard practices.