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  1. Assume for the purpose of this question only that Coates subsequently contracted to purchase Southacre from Archer, that Coates inspected Southacre and saw the dirt road which crossed it prior to contracting, and that the purchase contract made no mention of an easement or of the quality of title to be conveyed. Assume further that prior to closing of title, Coates refused to go through with the transaction on the ground that the existence of an easement across Southacre made Archer’s title unmarketable. If Archer asserts a claim against Coates for breach of contract, which of the following would be Archer’s most effective argument in support of his claim?

(A) A contract to purchase real property merges with the deed by which the title is conveyed.

(B) Coates had notice of the easement at the time he entered into the contract to purchase Southacre.

(C) The existence of an easement does not make title unmarketable.

(D) The purchase contract did not specify the quality of title to be conveyed.

Questions 21-23 are based on the following fact situation.

Zoning laws in Green City provided that all land on the north side of Main Street was restricted to residential use, and that commercial use was permitted on all land on the south side of Main Street. The zoning laws also provided that up two horses could be kept on any land zoned for residential use, but that no business could be operated on land zoned for residential use. Although all the other realty on the south side of Main Street was being put to commercial use, Homer owned and resided in a one story house located on the south side of Main Street.

Green Hills was a housing development located on the north side of Main Street. All deeds to realty in Green Hills contained language prohibiting the keeping of horses anywhere within the subdivision. The subdivision plan which had been filed when Green Hills was created provided that persons occupying realty in Green Hills were permitted to operate small businesses in their homes so long as such operation did not interfere with or annoy other residents in the subdivision.

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