Scrooge's Property Contains a Restrictive Covenant That Allows Only Residential

question 37

Multiple Choice

Scrooge's property contains a restrictive covenant that allows only residential use of the land to his inheritors.Over the years,all the adjoining areas of land have become industrial areas.Scrooge's great-grandson,the present owner of his land,wants to set up a small manufacturing unit there.Will he be able to do so?

• A)Yes,since he is the present owner.
• B)Yes,because the circumstances have changed completely.
• C)No,the restrictive covenant is completely binding.
• D)No,there cannot be a waiver because Scrooge is dead.

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Definitions:

Partnership

Exists when two or more persons associate to conduct a business.

Regulations

Regulations are rules or directives made and maintained by an authority to control or govern behavior within a specific system.

Intrinsic Value

The inherent worth of an asset, security, or company that is determined through analytical methods and underlying perceptions of its true value, beyond its current market price.

Earnings Per Share

A company's profit divided by the outstanding shares of its common stock, indicating the company's profitability.