Author Question: What is the purpose of an arbitration or mediation clause? What will be an ideal ... (Read 56 times)

cookcarl · **on:** Aug 3, 2018

What is the purpose of an arbitration or mediation clause?

What will be an ideal response?

Question 2

Distinguish between actual and constructive notice, and give an example of each.

What will be an ideal response?

zhanghao · **Reply #1 on:** Aug 3, 2018

Answer to Question 1

The purpose of these provisions in a real estate contract is to resolve disputes more quickly without resorting to litigation, which can delay the sale for long periods of time.

Answer to Question 2

Actual notice is first -hand knowledge that something was true or had occurred. For example, if John knows Ken recorded his deed first because he checked with the recording office, John has actual knowledge of the recording.
Constructive notice involves a situation where a person may not have actual notice,
but knowledge can be imputed to a person. For example, if John is told by Ken's business partner that Ken recorded a deed, John has constructive notice of the recording. All recorded documents are treated as giving notice to the world, so whether John checks the public records or not, he is charged with constructive notice of the recorded documents.