When might you be liable for another's contractual obligations on the acquisition of property?
A) If the property is land, and you are aware that it is subject to a negative covenant restricting its use.
B) If the property is a chattel, and you are aware that it is subject to a negative covenant restricting its use..
C) Both options are correct.
D) Neither options are correct.

Question

Quizplus · Accepted Answer

When acquiring land that is subject to a negative covenant restricting its use, and you are aware of this covenant, you may be liable for the obligations under that covenant. This is because negative covenants can run with the land, binding subsequent owners. Chattels, however, do not carry the same legal implications regarding covenants for subsequent owners.

When Might You Be Liable for Another's Contractual Obligations on the Acquisition