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

Mutual mistake requires both parties to share a mistaken belief about a basic assumption that materially affects the agreed exchange of performances.

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 power of acceptance terminates by rejection, counteroffer, lapse, revocation before acceptance, or the death or incapacity of either party.

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

Promissory estoppel requires a promise, foreseeable and actual reliance to the promisee's detriment, and that enforcement is necessary to avoid injustice.

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

Expectation damages award the benefit of the bargain, placing the non-breaching party in the economic position they would have occupied had the contract been performed.

Question 5

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

Accepted Answer

Before a party's duty to perform arises

Answer

A condition precedent must occur before the duty to perform under the contract becomes operative.

AL Bar - Alabama Bar Exam Practice Test

AL Bar - Alabama Bar Exam Practice Test

AL Bar Contracts 2