Problem
Study the case of Evans v. Faught and answer the following questions:
a) What are the two implied warranties of a grant deed?
b) Is the unrecorded lease executed by the seller with the county an encumbrance that affects title? Why?
c) What if the defendant in this case gave a copy of the lease, which expressly indicated the lease was for two years, to the plaintiff prior to the sale? Wouldn't the plaintiff have actual notice of the lease?
Study the case Honey v. Henry's Franchise Leasing Corp. and answer the following questions:
a) Should the court measure damages by the rental value or benefit of the bargain?
b) The market value of the property was $135,000, minus $90,000 equals $45,000. Buyer paid seller $33,450. Is the seller entitled to the difference?