AZ Bar Contracts and Commercial Law 1

Question 1

Under common law, a valid contract requires:

Accepted Answer

Offer, acceptance, consideration, and capacity

Answer

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.

Question 2

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

Accepted Answer

3 months

Answer

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.

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

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.

Question 4

Anticipatory repudiation occurs when a party:

Accepted Answer

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

Answer

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.

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

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.

AZ Bar - Arizona Bar Exam Practice Test

AZ Bar - Arizona Bar Exam Practice Test

AZ Bar Contracts and Commercial Law 1