CAS Bar CAS Bar Contracts and Commercial Law 1 — Questions and Answers
Question 1: Under the California Bar Exam, which of the following is required for a valid contract?
- Offer, acceptance, and consideration (Correct answer)
- Offer, acceptance, and a written document
- Consideration and a notarized signature
- Mutual assent and a written agreement only
Correct answer: Offer, acceptance, and consideration
A valid contract requires offer, acceptance, and consideration—the three core elements tested on the California Bar Exam.
Question 2: Under California law, the statute of frauds requires a written contract for which of the following?
- A contract for the sale of goods over $500
- A one-year oral employment contract
- A contract for the sale of real property
- Both A and C (Correct answer)
Correct answer: Both A and C
California's statute of frauds (Civil Code §1624) requires writing for both real property sales and goods over $500 under the UCC.
Question 3: A party seeks to enforce a contract where the other party was intoxicated at signing. Under California law, what is the most likely result?
- The contract is void ab initio
- The contract is voidable at the option of the intoxicated party (Correct answer)
- The contract is unenforceable by either party
- The contract is fully enforceable regardless of intoxication
Correct answer: The contract is voidable at the option of the intoxicated party
Contracts made by intoxicated persons are voidable, not void, allowing the intoxicated party to disaffirm upon regaining capacity.
Question 4: Under UCC Article 2 as adopted in California, a merchant's firm offer is irrevocable for how long without consideration?
- 30 days
- 60 days
- 90 days (Correct answer)
- 6 months
Correct answer: 90 days
Under UCC §2-205, a merchant's written firm offer is irrevocable for the stated period, but not to exceed 90 days.
Question 5: Which doctrine allows a court to refuse enforcement of a contract whose terms are oppressively one-sided?
- Impossibility
- Frustration of purpose
- Unconscionability (Correct answer)
- Mistake
Correct answer: Unconscionability
Unconscionability (Cal. Civ. Code §1670.5) permits courts to refuse enforcement of contracts or clauses that are oppressively one-sided.
Question 6: In California, the parol evidence rule generally prevents admission of prior oral agreements to:
- Explain an ambiguous contract term
- Contradict the terms of a fully integrated written contract (Correct answer)
- Show that a condition precedent was not met
- Establish fraud in the inducement
Correct answer: Contradict the terms of a fully integrated written contract
The parol evidence rule bars extrinsic evidence that contradicts or varies the terms of a fully integrated written contract.
CAS Bar CAS Bar Contracts and Commercial Law 1
Under the California Bar Exam, which of the following is required for a valid contract?