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MULTIPLE-CHOICE QUESTIONS

If Singer sues for damages based upon Bryant’s anticipatory repudiation of the contract of sale, the court should find for

(A) Singer, since the risk of loss passed to Bryant when he took possession of the premises pursuant to the contract.

(B) Singer, since Bryant purchased a policy of fire insurance covering the premises prior to the contract.

(C) Bryant, since Singer had a policy of insurance insuring him against fire damage to the house.

(D) Bryant, since the risk of loss never passed to Bryant.

Questions 6-8 are based on the following fact situation.

Several years ago, the Johnson Chemical Company developed a plan to use underground pipes for the purpose of transporting non-poisonous chemical wastes to a waste storage center located several miles away from its plant. At that time, it began negotiating for the right to lay an underground pipeline for that purpose across several tracts of realty. In return for a cash payment, the owner of Westacre executed a right-of-way deed for the installation and maintenance of the pipeline across his land. The right-of-way deed to Johnson Chemical Company was properly recorded. Westacre passed through several intermediate conveyances until it was conveyed to Sofield about fifteen years after the recording of the right-of-way deed. All of the intermediate deeds were recorded, but none mentioned the right-of-way.

Two years later, Sofield agreed to sell Westacre to Belden, by a written contract in which, among other things, Sofield agreed to furnish Belden with an abstract company, to prepare the abstract. Titleco prepared an abstract and delivered it to Sofield. The abstract omitted any mention of the right-of-way deed. Sofield delivered the abstract of title to Belden. After examining the abstract, Beldon paid the full purchase price to Sofield who conveyed Westacre to Belden by a deed which included covenants of general warranty and against encumbrances. At the time of closing, Sofield, Belden, and Titleco were all unaware of the existence of the right-of-way deed. After possessing Westacre for nearly a year, Belden was notified by the Johnson Chemical Company that it planned to begin installation of an underground pipeline on its right-of-way across Westacre.

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