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Ariel and Titus Own Adjoining Tracts of Land Divided by a Fence

question 28

Essay

Ariel and Titus own adjoining tracts of land divided by a fence that has been in place since 1978.In order to obtain a bank loan,Ariel has a survey made of his land and discovers that the fence is twenty feet off the property line.Ariel and Titus cannot agree to move the fence and end up in litigation.Discuss the likely result of the suit.


Definitions:

Closing Price

The final price at which a security is traded on a given trading day, often used for performance assessment.

Default Risk Premium

The additional return that an investor demands for taking on the risk that the borrower may default on the loan.

Liquidity Risk Premium

An additional return that investors require for holding securities with less liquidity, compensating for the risk of not being able to sell quickly at the fair market price.

Inflation Rate

The speed at which the average price of goods and services increases, leading to a decrease in buying power.

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