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1. Olivia owns two tracts of land, one on the ocean side of Pacific Coast Highway (PCH) and the other just across the street on

1. Olivia owns two tracts of land, one on the ocean side of Pacific Coast Highway ("PCH") and the other just across the street on the mountainside of PCH. On the mountainside, Olivia builds a 4 unit apartment building. Each unit has an extensive balcony with gorgeous views of the ocean. Ali is interested in leasing the upper north apartment. The rent is steep, but the views are awesome. Ali enters into a written lease with Olivia to rent apartment 2 North "for a term of years, to commence each year on January 1, and to end December 31, at a rent of $18,000 a year, payable $1,500 a month."

Olivia has trouble renting the other apartments. Faced with mounting bills, she decides to sell to her sister, Doris, a part interest in the lot on the other side of PCH (the ocean side). Olivia properly executes and records a deed that provides that Olivia conveys title to "Olivia and Doris and their heirs and assigns as joint tenants with right of survivorship and not as tenants in common." Thereafter, Doris properly executes a deed that provides that Doris conveys her interest in the property "to my nephew Kile for life, remainder to Kile's children."

Doris put the deed in a safe deposit box at her local bank. The safe deposit boxes are in a separate part of the bank. The entrance to the area is guarded by a security guard. Only persons leasing a safe deposit box or having authorized access to one are permitted beyond the security guard. Within this secure area, there is a special viewing area where there are enclosed cubicles so the parties can open their safe deposit boxes in privacy. When Doris entered one such cubicle to put the deed in her safe deposit box, she found a wad of $100 bills on the chair in the cubicle. The bills total $10,000. Doris reported her find to the bank. The bank contacted all the people who were listed as having been in that area that week, but no one came forward to claim the money.

Doris and Olivia obtain the necessary permits and approvals and begin to construct a high-rise apartment building which shortly will block most of Ali's view of the ocean. Ali thought the noise and traffic jams caused by the construction across the street were bad enough, but then Olivia lowered the rents on all the other apartments in an effort to lease them. Olivia was able to lease 1 North, the unit directly below Ali's, to Bert. Unfortunately, Bert is a chain smoker, and Ali hates the smell of cigarette smoke. Ali complains that the common areas reek of smoke. Moreover, when Bert smokes on his balcony, the coastal breeze pushes the smoke up to Ali's balcony, making it unbearable for Ali to be on the balcony when Bert is smoking. If Ali's balcony door is open (to take advantage of the coastal breeze), the smoke comes into Ali's apartment. Even when the balcony door is closed, Ali complains that some of the smoke seeps into her unit. Ali complained to Olivia some time ago about the noise from the construction, that the new building is going to block her view, and about Bert's smoking, but to date, Olivia has done nothing.

If Ali were to sue Olivia for the conditions surrounding her apartment (the smoke from her neighbor, the noise from the construction, and the blocked view), her best chances of prevailing on any of these claims would be:

a. under frustration of purpose.

b. under the illegal lease doctrine.

c. under the implied warranty of habitability.

d. under covenant of quiet enjoyment.

2. O is the owner of Blackacre, a rolling estate with a beautiful home on it. In 2000, O properly executes and delivers a deed that conveys Blackacre "to A and B and their heirs as joint tenants and not as tenants in common."

On January 1, 2002, B announces his marriage to C. As a wedding gift, B properly executes and gives C a deed at their rehearsal dinner conveying his interest in Blackacre "to B and C as tenants by the entirety." B and C marry shortly thereafter.

On January 1, 2005, B leases Blackacre to X, his sister, for 5 years at $8,000 a month, even though the fair market value is $10,000 a month. The lease provides that (1) "X has the duty to repair the premises;" (2) "that B may use self-help eviction as long as the means of re-entry are peaceable;" and (3) "that X may not assign without B's consent."

On July 1, 2007, an earthquake hits Blackacre, breaking windows and water pipes. X stops paying rent and refuses to repair the damage. B sues X to make X pay for the repairs.The most likely result is that:

a. B should not prevail, regardless of whether the jurisdiction applies the common law or modern trend approach.

b. B should prevail if the jurisdiction applies the modern trend approach, but not if the jurisdiction applies the common law approach.

c. B should prevail, regardless of whether the jurisdiction applies the common law or modern trend approach.

d. B should prevail if the jurisdiction applies the common law approach, but not if the jurisdiction applies the modern trend approach.

3. Tenant signed a lease with Landlord for a one-year term, ending on August 31. The lease provided for monthly rental payments of $500. On September 1, without vacating the premises, Tenant sent Landlord a check for $500. Landlord cashed the check. On September 15th, Landlord informed the Tenant that the premises had been rented to another party and that Tenant must vacate by September 30 or face eviction. Assuming Tenant will not voluntarily leave, when is the earliest that Landlord will be able to remove Tenant from the premises?

a. September 30, because Tenant has a month-to-month periodic tenancy and Landlord has indicated that he wishes to terminate.

b. October 31, because Tenant has a month-to-month periodic tenancy and Landlord has indicated that he wishes to terminate.

c. Immediately, because Tenant has a tenancy at sufferance and Landlord has indicated that he wishes to reclaim possession.

d. September 30, because Tenant has a tenancy at sufferance and Landlord has indicated that he wishes to reclaim possession.

e. August 31 the following year, because Tenant has effectively renewed the term of years tenancy.

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