AZ Bar Contracts and Commercial Law

Question 1

Under common law, a valid contract requires:

Accepted Answer

Offer, acceptance, consideration, and capacity

Answer

Offer, acceptance, consideration, and a writing

Answer

Agreement, payment, and written signatures

Answer

Mutual assent, consideration, and notarization

Question 2

Under UCC Article 2, a merchant's firm offer is irrevocable for up to:

Accepted Answer

3 months

Answer

30 days

Answer

90 days

Answer

6 months

Question 3

The parol evidence rule bars admission of extrinsic evidence to:

Accepted Answer

Contradict or vary the terms of a fully integrated written agreement

Answer

Explain an ambiguous term in an integrated agreement

Answer

Show that a condition precedent was not met

Answer

Demonstrate fraud in the inducement

Question 4

Anticipatory repudiation occurs when a party:

Accepted Answer

Clearly and unequivocally indicates before performance is due that it will not perform

Answer

Fails to perform on the due date

Answer

Requests a modification of the contract terms

Answer

Performs in a materially deficient manner

Question 5

Under the UCC, the battle of the forms provision (§ 2-207) provides that additional terms in an acceptance:

Accepted Answer

Are proposals for addition that become part of the contract between merchants unless objected to or materially alter the offer

Answer

Always become part of the contract

Answer

Constitute a counteroffer that voids the original offer

Answer

Are enforceable only if in writing

Question 6

Promissory estoppel is available as a substitute for consideration when:

Accepted Answer

A party detrimentally relies on a promise and injustice can only be avoided by enforcement

Answer

A written promise is made by a merchant

Answer

The promise is for a sum greater than $500

Answer

A unilateral contract is formed