CAS Bar Contracts and Commercial Law Flashcards

Under California contract law, anticipatory repudiation occurs when a party:

Answer: Clearly indicates before the performance date that it will not perform

Anticipatory repudiation is an unequivocal statement or action before the performance date indicating the party will not perform.

Which remedy allows a non-breaching party to recover the benefit conferred on the breaching party to avoid unjust enrichment?

Answer: Restitution

Restitution restores the value conferred on the breaching party, preventing unjust enrichment rather than compensating lost profits.

Under the UCC, a contract for the sale of goods may be modified without:

Answer: New consideration

UCC §2-209 allows modification of a sale-of-goods contract without new consideration, unlike common law which requires it.

A building contractor is excused from performance because the structure was destroyed by an earthquake before completion. This defense is called:

Answer: Impossibility of performance

Impossibility of performance excuses a party when an unforeseen event makes performance objectively impossible, such as destruction of the subject matter.

Under California law, a third-party beneficiary's rights vest when the beneficiary:

Answer: All of the above

California courts recognize that a third-party beneficiary's rights vest upon learning of and assenting to, or detrimentally relying on, the contract.

Which of the following is a characteristic of a valid accord and satisfaction under California law?

Answer: A new agreement to settle a disputed or unliquidated debt followed by performance

An accord and satisfaction requires a new agreement to resolve a bona fide dispute or unliquidated claim, followed by actual performance of that new agreement.