Contracts and Commercial Law Flashcards
6 cards from real AZ 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 and Commercial Law flashcards as text
Under common law, a valid contract requires:
Answer: Offer, acceptance, consideration, and capacity
A valid common law contract requires an offer, acceptance, consideration, and the parties must have legal capacity; a writing is only required for contracts within the Statute of Frauds.
Under UCC Article 2, a merchant's firm offer is irrevocable for up to:
Answer: 3 months
UCC § 2-205 provides that a signed, written firm offer by a merchant is irrevocable for the period stated, or if no period is stated, for a reasonable time not to exceed 3 months.
The parol evidence rule bars admission of extrinsic evidence to:
Answer: Contradict or vary the terms of a fully integrated written agreement
The parol evidence rule prevents parties from introducing prior or contemporaneous extrinsic evidence to contradict or vary the terms of a fully integrated written agreement.
Anticipatory repudiation occurs when a party:
Answer: Clearly and unequivocally indicates before performance is due that it will not perform
Anticipatory repudiation is an unequivocal statement or action by a party before the performance date indicating refusal to perform, allowing the non-breaching party to treat it as a present breach.
Under the UCC, the battle of the forms provision (§ 2-207) provides that additional terms in an acceptance:
Answer: Are proposals for addition that become part of the contract between merchants unless objected to or materially alter the offer
UCC § 2-207 provides that between merchants, additional terms in a definite acceptance become part of the contract unless the offer limits acceptance, they materially alter the offer, or the offeror objects.
Promissory estoppel is available as a substitute for consideration when:
Answer: A party detrimentally relies on a promise and injustice can only be avoided by enforcement
Promissory estoppel enforces a promise lacking consideration when there is a clear promise, foreseeable and actual detrimental reliance, and injustice cannot otherwise be avoided.