CFL Contract Disputes & Commercial Litigation

Question 1

Under the Uniform Commercial Code Article 2, the 'battle of the forms' under Section 2-207 addresses situations where:

Accepted Answer

Acceptance contains different or additional terms from the offer in a commercial transaction

Answer

Two parties submit conflicting purchase orders for the same goods

Answer

A seller ships non-conforming goods as an accommodation

Answer

Multiple buyers submit offers for the same inventory

Question 2

The parol evidence rule generally prevents a party from introducing extrinsic evidence to:

Accepted Answer

Contradict or vary the terms of a fully integrated written contract

Answer

Explain ambiguous terms in the written agreement

Answer

Show that the contract was induced by fraud

Answer

Prove that a condition precedent was never satisfied

Question 3

Under common law, the doctrine of 'anticipatory repudiation' allows the non-breaching party to treat the contract as breached and seek immediate damages when:

Accepted Answer

The other party unequivocally communicates that it will not perform before performance is due

Answer

The other party misses an installment payment under a long-term contract

Answer

The other party requests a modification that the non-breaching party rejects

Answer

The other party becomes insolvent before the performance date

Question 4

In commercial litigation, 'consequential damages' for breach of contract are recoverable only if they were:

Accepted Answer

Within the reasonable contemplation of both parties at the time of contracting

Answer

Specifically enumerated in the contract's damages provision

Answer

Incurred within 6 months of the breach

Answer

Supported by a third-party appraisal of their value

Question 5

A liquidated damages clause in a commercial contract is enforceable only if:

Accepted Answer

The stipulated amount was a reasonable estimate of anticipated harm at the time of contracting and actual damages are difficult to prove

Answer

The clause was negotiated at arm's length between sophisticated parties

Answer

The amount does not exceed the contract price

Answer

The clause is included in the main body of the agreement, not an exhibit

Question 6

The Uniform Commercial Code's 'perfect tender rule' under Section 2-601 allows a buyer to reject goods that:

Accepted Answer

Fail in any respect to conform to the contract

Answer

Are more than 10% defective by quantity or quality

Answer

Arrive more than 3 days late under the delivery schedule

Answer

Do not meet the industry standard for merchantability