Contracts Flashcards
6 cards from real AL BAR practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Contracts flashcards as text
Under UCC § 2-207, between merchants additional terms in an acceptance become part of the contract unless:
Answer: They are material alterations, the offer expressly limits acceptance, or the offeror objects timely
Between merchants, additional terms automatically become part of the contract unless they materially alter it, the offer limits acceptance, or the offeror timely objects.
An assignment of contract rights is generally valid unless it:
Answer: Changes the obligor's duty, risk, or chance of receiving return performance
An assignment is ineffective if it materially changes the obligor's duty, burden, or risk, or reduces the chance of receiving counter-performance.
Specific performance as a remedy for breach of contract is available when:
Answer: Monetary damages are inadequate because the subject matter is unique
Specific performance is an equitable remedy granted when money damages are inadequate, typically because the subject matter—such as real property—is unique.
Under the doctrine of substantial performance, a party who has substantially but not perfectly performed:
Answer: May recover the contract price minus damages for the deficiency
A party who substantially performs in good faith can recover the contract price, subject to a deduction for the cost of correcting the deficiency.
A third-party beneficiary's rights vest, preventing modification of the contract, when the beneficiary:
Answer: Learns of and assents to, materially relies on, or sues to enforce the contract
A third-party beneficiary's rights vest once they learn of and assent to the contract, detrimentally rely on it, or bring suit to enforce it.
Liquidated damages clauses are enforceable under Alabama contract law if:
Answer: Damages were difficult to estimate at the time of contracting and the amount is a reasonable forecast
Liquidated damages clauses are valid when actual damages were difficult to estimate at formation and the stipulated amount was a reasonable forecast of probable harm.