CAS Bar CAS Multistate Bar Examination (MBE) 2

Question 1

A buyer and seller enter a contract for the sale of a house.
The contract contains no express condition regarding financing.
The buyer cannot obtain a mortgage loan and refuses to close.
Which of the following best describes the buyer's legal position?

Accepted Answer

The buyer is in breach because inability to finance does not excuse performance.

Answer

The buyer is excused because financing is an implied condition.

Answer

The buyer may rescind based on mutual mistake.

Answer

The buyer is excused under the doctrine of commercial impracticability.

Question 2

Under the MBE, which of the following is NOT a recognized method of accepting an offer?

Accepted Answer

Rejection of the offer followed by a counter-proposal accepted by the original offeror.

Answer

Performance of the requested act in a unilateral contract.

Answer

A promise to perform in a bilateral contract.

Answer

Silence, when the offeree has a duty to speak based on prior dealings.

Question 3

A landlord leases commercial property for five years. Two years into the lease, the city condemns 40% of the property for a public road. The tenant stops paying rent. Which is the most accurate statement?

Accepted Answer

The tenant is excused from rent only if the condemned portion was the primary purpose of the lease.

Answer

The lease terminates automatically upon any condemnation.

Answer

The tenant owes full rent because partial condemnation does not terminate the lease.

Answer

The tenant owes reduced rent proportionate to the loss of use.

Question 4

Under the common law Statute of Frauds, which of the following contracts does NOT need to be in writing to be enforceable?

Accepted Answer

A contract to pay another's debt that can be fully performed within six months.

Answer

A contract for the sale of land.

Answer

A contract that cannot be performed within one year of its making.

Answer

A contract for the sale of goods worth $500 or more.

Question 5

A testator devises Blackacre 'to A for life, then to A's children who survive A.' At the testator's death, A has two children. One child predeceases A without issue. When A dies, who takes Blackacre?

Accepted Answer

Only the surviving child of A.

Answer

Both children's estates share equally.

Answer

The estate of A's predeceased child and the surviving child share equally.

Answer

The testator's residuary estate.

Question 6

Under the MBE rules of Real Property, an easement appurtenant passes with the dominant tenement even if the deed conveying the dominant tenement does not mention the easement. This is because:

Accepted Answer

The easement runs with the land as a benefit to the dominant estate.

Answer

Easements are personal rights that transfer only by express assignment.

Answer

Recording the easement is required for it to bind subsequent owners.

Answer

A grantee takes only the rights expressly conveyed in the deed.

Question 7

Under the Rule Against Perpetuities, which interest is MOST likely to be void?

Accepted Answer

A springing executory interest to 'A's first child to reach age 21.'

Answer

A remainder to 'B if B survives the life tenant.'

Answer

A fee simple absolute conveyed to A immediately.

Answer

A remainder contingent on the life tenant's death.