CFL Contract Disputes & Commercial Litigation 2

Question 1

In commercial real estate disputes, a 'time is of the essence' clause means that:

Accepted Answer

Failure to meet deadlines constitutes a material breach justifying rescission

Answer

When time is of the essence, missing a performance deadline is a material breach that entitles the non-breaching party to terminate the contract and seek damages.

Question 2

Under the doctrine of commercial impracticability (UCC Section 2-615), a seller may be excused from performance if:

Accepted Answer

Performance has become impracticable due to the occurrence of a contingency whose non-occurrence was a basic assumption of the contract

Answer

Section 2-615 requires that the supervening contingency was not foreseeable and was a basic assumption of the contract—mere price increases rarely suffice.

Question 3

A financial litigator analyzing a claim for tortious interference with contract must establish that the defendant's interference was:

Accepted Answer

Intentional and improper, without justification or privilege

Answer

Tortious interference requires intentional, improper interference—courts use the Restatement factors to determine impropriety, focusing on the defendant's purpose and means.

Question 4

Under the UCC, when a buyer's check for goods bounces and the seller seeks to reclaim goods already delivered, the reclamation right under Section 2-702(2) must be exercised within:

Accepted Answer

10 days after the buyer's receipt of the goods

Answer

UCC 2-702(2) gives the seller a 10-day window to demand reclamation, extendable to a reasonable time if the buyer made a written misrepresentation of solvency within 3 months.

Question 5

In commercial arbitration under the Federal Arbitration Act (FAA), a court may vacate an arbitration award only on limited grounds, including:

Accepted Answer

Corruption, fraud, or undue means in procuring the award

Answer

FAA Section 10 provides narrow grounds for vacatur: corruption, evident partiality, arbitrator misconduct, or exceeding powers—courts have very limited review of arbitration awards.

CFL - Certified Financial Litigator Practice Test

CFL - Certified Financial Litigator Practice Test

CFL Contract Disputes & Commercial Litigation 2