Chapter 7: RAP-Special Cases

Question 1

Which doctrine or rule closes a class so the Rule Against Perpetuities does NOT apply?

Answer 1

Rule of Convenience

Question 2

True or False?
The Rule Against Perpetuities does not apply to an option held by a current tenant to purchase a fee interest in leasehold property.

Answer 2

True. This is one of the 3 exceptions to RAP

Question 3

What is the name of the most common modern approach that has replaced the traditional Rule Against Perpetuities?

a. The “90-year” rule
b. The Uniform Act of Perpetuities
c. The “wait and see” approach
d. Cy Pres

Answer 3

c. The “Wait and see” approach

Question 4

“bad as to one, bad as to all” applies to what type of conveyance/transaction?

Answer 4

class gifts

Question 5

RAP Violations
In the rare case when the voiding of the future interest undermines the grantor’s intent, what happens to the interest?

Answer 5

The entire transfer is voided and the interest reverts to the grantor

Question 6

Name the 2 exceptions to the Class Gift Rule.

1. Transfers of a specific __________ to each class member, and
2. Transfers to a ___________ that vests at a specific time.

Answer 6

(dollar) amount
sub class
e.g. “to the children of B, and upon the death of each, to that child’s issue.”