Number one rule to small space living – utilize multi purpose furniture. With that said, there are no rules to design.
Here is something after my own heart. The Mona Chair by Kwang Hoo Lee-A piece of art the turns into a chair – Store on a wall until it is needed – talk about hanging around.
The Genya Chair by Dante Bonucelli – folds up into a slim package. A great minimalist design. When closed, the seat has the appearance of a compact wall.
The designer himself, Dante Bunocelli