AZ Bar Contracts and Commercial Law 2

Question 1

The perfect tender rule under UCC Article 2 provides that a buyer may reject goods if:

Accepted Answer

The goods or the tender of delivery fail in any respect to conform to the contract

Answer

UCC § 2-601 allows the buyer to reject the whole, accept the whole, or accept any commercial unit if the goods or tender fail in any respect to conform to the contract.

Question 2

A liquidated damages clause in a contract is enforceable if:

Accepted Answer

The damages were difficult to estimate at the time of contracting and the amount is a reasonable forecast of compensatory damages

Answer

A liquidated damages clause is enforceable when actual damages were difficult to estimate at contracting and the stipulated amount is a reasonable forecast of actual damages, not a penalty.

Question 3

Under common law, a material breach by one party:

Accepted Answer

Gives the non-breaching party the right to suspend performance and ultimately treat the contract as discharged

Answer

A material breach discharges the non-breaching party's duty to perform and entitles that party to damages, while a minor breach still requires the non-breaching party to perform.

Question 4

The Statute of Frauds requires a writing for contracts:

Accepted Answer

Valued at more than $500 for goods under the UCC and for contracts within the MYLEGS categories at common law

Answer

The Statute of Frauds applies to contracts for the sale of goods over $500 (UCC) and to the MYLEGS categories at common law: Marriage, Year (over one year), Land, Executor, Guaranty, Sale of goods over $500.

Question 5

Impossibility of performance as a defense to breach requires that the supervening event:

Accepted Answer

Made performance objectively impossible and the risk was not assumed by the party seeking discharge

Answer

Impossibility requires an objective inability to perform caused by an unforeseeable event, where the promisor did not assume the risk of that event.

AZ Bar - Arizona Bar Exam Practice Test

AZ Bar - Arizona Bar Exam Practice Test

AZ Bar Contracts and Commercial Law 2