Risk Passes With Purchase Money
Malcolm McKinley signed a binding contract to buy land from Musa Mensah. Before closing a fire destroyed the house. Equity treats Mensah as owner of the purchase money so McKinley must still pay the full price.
Also known as: moneys · monies · currency · funds
Written by attorneys · grounded in primary & secondary sources — see below
A medium of exchange adopted or authorized by a domestic or foreign government.
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Malcolm McKinley signed a binding contract to buy land from Musa Mensah. Before closing a fire destroyed the house. Equity treats Mensah as owner of the purchase money so McKinley must still pay the full price.
Congress passed a statute authorizing the Treasury to borrow money on the credit of the United States and to coin money. The legislation regulates the value of domestic and foreign coin under the enumerated powers.
Maria Morales received a client retainer from Mustafa Mahmoud. She deposited the funds into a separate trust account maintained in her state rather than mixing them with her personal funds.
Monica Morgan breached a contract with Miguel Mendoza. The court entered judgment awarding Mendoza a sum of money equal to the amount due under the contract plus damages for the breach.
Mercury Industries funded an inter vivos trust with cash during the testator's life. The will contained a pour-over provision adding additional money to the same trust at death.
The owner of Momentum Capital commingled corporate money with personal funds and failed to observe corporate formalities. A creditor proved unity of interest and that adherence to the corporate fiction would sanction fraud.
Once a binding contract for the sale of land forms equity treats the seller as owner of the purchase money. In many jurisdictions the risk of loss therefore passes to the buyer at contract formation.
Supporting sources
A lawyer must hold client money separate from the lawyer's own property in a separate account maintained in the state where the office is situated. Complete records must be kept for five years after termination.
Supporting sources
Money is a medium of exchange adopted or authorized by a domestic or foreign government. Currency bills and coins authorized by the federal government qualify under this definition.
Supporting sources
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