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MMLU / A housing corporation owned a tract of land. The housing corporation prepared a…

Problem

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question

A housing corporation owned a tract of land. The housing corporation prepared a development plan to divide the land into 100 lots and create a residential community on the tract. The Declaration of Covenants created the homeowners' association, an administrative entity that would administer and enforce the regulations and restrictions recited among the covenants. One of the restrictions set forth in the Declaration of Covenants reads:"There shall never at any time be erected, permitted, or maintained upon any part of the property any structure designed for or used as a saloon or place for the sale or manufacture of malt, vinous, or spirituous liquors. "The Declaration of Covenants was duly recorded and was included in the deed taken by a teacher when he purchased lot 62 in the development. The teacher immediately recorded his deed. The teacher leased his home to a librarian for a term of one year. The lease included the same restrictions as those in the Declaration of Covenants and in the teacher's deed. The librarian immediately began to sell liquor on the premises during weekly "after hours" parties. The homeowners' association sues the librarian in an action for damages. Which of the following is the best argument for the librarian?

choices

  1. The rule in Spencer's Case prevents the librarian from being liable.
  2. The librarian is not in privity of contract with the homeowners' association.
  3. The librarian is not in privity of estate with the teacher.
  4. Other lots in the immediate vicinity are used for commercial purposes.

subject

professional_law

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