fertile-octogenarian rule. The legal fiction, assumed under the rule against perpetuities, that a woman can become pregnant as long as she is alive. • The case that gave rise to this fiction was Jee v. Audley, 1 Cox 324, 29 Eng. Rep. 1186 (ch. 1787). See W. Barton Leach, Perpetuities: New Hampshire Defertilizes Octogenarians, 77 […]
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cestui que vie (set-ee [orses-twee] kee [or k[schwa]] vee). The person whose life measures the duration of a trust, gift, estate, or insurance contract. Cf. MEASURING LIFE. [Cases: Life Estates 1. C.J.S. Estates §§ 28–29, 31, 34.] “[L]et us assume that A instead transfers ‘to E for the life of A.’ Since A has used
subject to open. Denoting the future interest of a class of people when this class is subject to a possible increase or decrease in number.
power of attorney. 1. An instrument granting someone authority to act as agent or attorney-in-fact for the grantor. • An ordinary power of attorney is revocable and automatically terminates upon the death or incapacity of the principal. — Also termed letter of attorney. [Cases: Principal and Agent 51.] 2. The authority so granted; specif., the
constitutum possessorium (kon-sti-t[y]oo-t[schwa]m pah-ses-sor-ee-[schwa]m). [Latin “possessory agreement”] Roman law. 1. A type of constructive delivery in which mediate possession is transferred while the immediate control or custody remains in the transferor. 2. The agreement by which this transfer is brought about. • In the context of a security interest, the pledged property may remain in
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A partnership’s payment of cash or property to a partner out of earnings or as an advance against future earnings, or a payment of the partners’ capital in partial or complete liquidation of the partner’s interest. [Cases: Partnership 232. C.J.S. Partnership § 230.]
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capitalization rate. The interest rate used in calculating the present value of future periodic payments. — Also termed cap rate; income yield.
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economic indicator. A statistical measure (such as housing starts) used to describe the state of the economy or to predict its direction. See INDICATOR. lagging economic indicator. An economic indicator (such as new-home sales) that tends to respond to the direction of the economy. — Often shortened to lagging indicator. leading economic indicator. An economic
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The sum of money that, with compound interest, would amount to a specified sum at a specified future date; future value discounted to its value today. — Also termed present worth.
exchange, n. Commercial law. 1. The act of transferring interests, each in consideration for the other. [Cases: Exchange of Property 1. C.J.S. Exchange of Property §§ 2–3.] bargained-for exchange. See BARGAINED-FOR EXCHANGE. like-kind exchange. See LIKE-KIND EXCHANGE. tax-free exchange. See TAX-FREE EXCHANGE. 1031 exchange. See 1031 EXCHANGE. 2. Money or negotiable instruments presented as payment;