CAS Bar CAS Bar Contracts and Commercial Law 2

Question 1

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

Accepted Answer

Clearly indicates before the performance date that it will not perform

Answer

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

Question 2

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

Accepted Answer

Restitution

Answer

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

Question 3

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

Accepted Answer

New consideration

Answer

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

Question 4

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

Accepted Answer

Impossibility of performance

Answer

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

Question 5

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

Accepted Answer

All of the above

Answer

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

(CAS Bar) California State Bar Exam Practice Test

(CAS Bar) California State Bar Exam Practice Test

CAS Bar CAS Bar Contracts and Commercial Law 2