Also known as: by operation of law · operates by law · ipso jure
Written by attorneys · grounded in primary & secondary sources — see below
A legal mechanism by which rights, liabilities, or interests arise automatically under applicable rules without regard to the parties' intent or affirmative acts. The mechanism supplies the legal consequence directly once the triggering facts occur.
Odin Obeng, a resident of State B, inherited land located in State A from a relative who died intestate. State B courts would apply their own succession rules, but the transfer of the interest occurred by operation of law. The court therefore looked to the law that State A courts would apply to determine both whether a transfer had taken place and the nature of the interest that passed.
Oscar Ortiz and his spouse held their home as tenants by the entirety. While divorce proceedings were pending, Oscar executed a will attempting to leave the home to a third party. Oscar died before the divorce was final and before any property settlement altered the tenancy. Title therefore passed by operation of law directly to the surviving spouse.
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Optima Health, an LLC member, merged into Overland Transport. Under the merger documents, all membership interests in Optima Health converted automatically into membership interests in a new LLC. Overland Transport therefore became a member of the new LLC by operation of law at the effective time of the merger.
Otis Olsen granted a mortgage containing a power-of-sale clause on his ranch. After Otis died, the mortgagee conducted a foreclosure sale during probate. Olympus Banking purchased the ranch at the auction and received a trustee's deed. Title passed to Olympus Banking by operation of law through the foreclosure.
Onyx O'Reilly paid the full balance of a mortgage that secured a loan made to Orion Orlov. The mortgagee recorded a satisfaction, but Onyx demanded assignment of the mortgage and note. Subrogation therefore assigned the mortgage to Onyx by operation of law, preserving the lien for Onyx to enforce against the property.
Oasis Resorts, a limited partner in a limited partnership, merged into another entity. The merger agreement provided that all partnership interests converted automatically into interests in the surviving limited partnership. The surviving entity therefore became a limited partner by operation of law upon completion of the merger.
No. Transfers by operation of law pass title without a deed from the transferor, although a fiduciary may later execute a deed to perfect record title.
Subrogation arises by operation of law when one party pays or performs in full an obligation owed by another and secured by a mortgage. The mortgage and obligation are assigned to the payor to prevent unjust enrichment.
No. A will cannot dispose of nonprobate property held as tenants by the entirety. Title passes by operation of law to the surviving spouse if the tenancy remains intact at death.
The law that would be applied by the courts of the situs determines whether a transfer of an interest in land occurred by operation of law and the nature of the interest transferred.
A person becomes a member or partner when status devolves on that person by operation of law from a prior member or partner, such as through a statutory merger whose terms automatically convert interests.
…was owned not by petitioner but by the corporation of which he was sole shareholder. When title was transferred to petitioner by operation of law, the wetlands regulations were in force. The state court held the postregulation acquisition of title was fatal to the claim for deprivation of all economic use, and to the Penn Central…