Discuss The Rights Of Two Parties Involved To The Insurance Funds In The Risk Of Fire Insurance


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Samuel’s, an elderly widower, conveyed his farmland to his son Peter for life, then to his grandson Paul in fee simple. In the deed, he reserved to himself the right to continue to live on the farm and to receive 50 percent of the income from the farm during the rest of his lifetime. Peter operated the farm with the assistance of both Samuel’s and Paul for a number of years, during which time he paid his father 50 percent of the farm income. Eventually, Peter decided to seek employment in industry and took a job in a nearby manufacturing plant. At that point he decided to cease farming. A short time later, the barn was accidentally destroyed by fire and the farm machinery destroyed. Samuel’s, Peter, and Paul each claimed to be entitled to the proceeds of the fire insurance on the barn and the farm machinery. Discuss the rights (if any) of each of the parties to the insurance funds in this dispute.

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