AL Bar Contracts 2

Question 1

A contract is voidable on the ground of mutual mistake when:

Accepted Answer

Both parties were mistaken about a basic assumption materially affecting the agreed exchange

Answer

One party made a computational error

Answer

The price was unreasonably low

Answer

The contract is ambiguous on its face

Question 2

An offeree's power of acceptance is terminated by:

Accepted Answer

Rejection, counteroffer, lapse of time, revocation, or death of the offeror

Answer

The offeree's request for more information

Answer

The offeree beginning performance

Answer

A change in market conditions

Question 3

Under the doctrine of promissory estoppel, a promise is enforceable without consideration if:

Accepted Answer

The promisor should have reasonably expected reliance, reliance occurred, and injustice can only be avoided by enforcement

Answer

It is in writing

Answer

Both parties are merchants

Answer

The promise involves more than $500

Question 4

Expectation damages in contract law are designed to put the non-breaching party in the position they would have been in:

Accepted Answer

If the contract had been fully performed

Answer

Before the contract was formed

Answer

At the time the breach was discovered

Answer

After any unjust enrichment is returned

Question 5

A condition precedent in a contract is one that must occur:

Accepted Answer

Before a party's duty to perform arises

Answer

After the party's performance duty arises

Answer

Simultaneously with performance

Answer

Within a reasonable time after breach

Question 6

The doctrine of impossibility of performance excuses a party's contractual obligation when:

Accepted Answer

Performance becomes objectively impossible due to an unforeseen event after contract formation

Answer

Performance becomes financially burdensome

Answer

A party subjectively cannot perform

Answer

Market conditions change drastically