Business Law 16th Edition by Jane Mallor,James Barnes ,Arlen Langvardt,Jamie Darin Prenkert,Martin McCrory

Exercise 1

Chevron U.S.A., Inc., and Sheikhpour had entered into a settlement agreement that would require Sheikhpour to complete reconstruction work on his gas station. When Sheikhpour did not do the work, Chevron sued to enforce the settlement agreement. Sheikhpour requested continued access to the property for 14 days to allow him to remove his "personal property." The parties then entered a Release and Indemnification Agreement, which allowed Sheikhpour to access the property for the sole purpose of removing his personal property. Sheikhpour informed Chevron that he intended to dig up and remove the fuel storage tanks. The tanks, which are valued at about $120,000, sit in a "tank pit area" and are covered with gravel. Are the tanks personal property or fixtures, and what difference does that make?