CAS Bar Contracts and Commercial Law Flashcards

A seller in California delivers 500 units when the contract called for 600. Under UCC perfect tender rule, the buyer may:

Answer: Both B and C

Under UCC §2-601, the perfect tender rule allows a buyer to reject the whole, accept the whole, or accept any commercial unit and reject the rest.

Under California law, which of the following would make an otherwise valid contract unenforceable due to illegality?

Answer: A contract to operate an unlicensed massage business where licensing is required

A contract to perform services requiring a license without holding that license is illegal and generally unenforceable in California.

In a California contracts essay, when analyzing 'consideration,' which of the following would NOT qualify?

Answer: A promise based solely on moral obligation for a past act

Past consideration—a promise motivated solely by moral obligation for a past act—does not qualify as valid consideration under California contract law.

A contractor claims commercial impracticability due to a 30% cost increase in materials. Under California/UCC law, this defense will most likely:

Answer: Fail because cost increases alone rarely constitute commercial impracticability

Courts rarely excuse performance based on cost increases alone unless the increase is extreme and caused by an unforeseeable contingency that fundamentally alters the contract's basis.

Under California law, when one party to a contract makes a unilateral mistake, the contract is:

Answer: Voidable if enforcement would be unconscionable and the other party knew or should have known of the mistake

California allows rescission for unilateral mistake only when enforcement would be unconscionable and the non-mistaken party knew or had reason to know of the error.

Which of the following best describes 'specific performance' as a remedy in California contract law?

Answer: A court order compelling a party to perform the contract

Specific performance is an equitable remedy requiring a party to actually perform its contractual obligations, typically granted when monetary damages are inadequate.