AL Bar Contracts 3

Question 1

Under UCC § 2-207, between merchants additional terms in an acceptance become part of the contract unless:

Accepted Answer

They are material alterations, the offer expressly limits acceptance, or the offeror objects timely

Answer

They increase the price

Answer

The offeree is not a merchant

Answer

The offer was oral

Question 2

An assignment of contract rights is generally valid unless it:

Accepted Answer

Changes the obligor's duty, risk, or chance of receiving return performance

Answer

Involves a service contract

Answer

Is not in writing

Answer

Occurs after partial performance

Question 3

Specific performance as a remedy for breach of contract is available when:

Accepted Answer

Monetary damages are inadequate because the subject matter is unique

Answer

The breach is material

Answer

The contract involves more than $10,000

Answer

The breaching party is insolvent

Question 4

Under the doctrine of substantial performance, a party who has substantially but not perfectly performed:

Accepted Answer

May recover the contract price minus damages for the deficiency

Answer

May not recover anything

Answer

May recover full contract price without any offset

Answer

Is treated as having fully breached

Question 5

A third-party beneficiary's rights vest, preventing modification of the contract, when the beneficiary:

Accepted Answer

Learns of and assents to, materially relies on, or sues to enforce the contract

Answer

Is named in the contract

Answer

Is a creditor of the promisee

Answer

Receives at least nominal benefit

Question 6

Liquidated damages clauses are enforceable under Alabama contract law if:

Accepted Answer

Damages were difficult to estimate at the time of contracting and the amount is a reasonable forecast

Answer

The amount is agreed upon before any breach

Answer

The clause is labeled 'liquidated damages' in the contract

Answer

Both parties are represented by counsel