CP Contracts and Commercial Law 2

Question 1

Under the UCC, what is the perfect tender rule?

Accepted Answer

A rule allowing a buyer to reject goods that fail to conform to the contract in any respect

Answer

A rule requiring all contracts to be in writing

Answer

A rule requiring payment before delivery

Answer

A rule governing warranty disclaimers

Question 2

What is the difference between express and implied warranties?

Accepted Answer

Express are created by specific seller representations while implied arise automatically by law

Answer

Express are verbal while implied are written

Answer

Express apply only to new goods while implied apply to used

Answer

No legal difference

Question 3

What is anticipatory repudiation in contract law?

Accepted Answer

A clear indication before performance is due that a party will not fulfill obligations

Answer

Refusing to perform after the date has passed

Answer

Renegotiating terms before deadline

Answer

Filing a breach lawsuit prematurely

Question 4

What does the parol evidence rule prohibit?

Accepted Answer

The use of prior or contemporaneous oral agreements to contradict a final written contract

Answer

Oral testimony in court

Answer

Hearsay about negotiations

Answer

Evidence of subsequent modifications

Question 5

What is specific performance as a contract remedy?

Accepted Answer

A court order requiring a breaching party to perform their contractual obligations

Answer

A monetary award based on contract price

Answer

A penalty clause in the contract

Answer

An agreement to renegotiate terms

Question 6

What is a liquidated damages clause?

Accepted Answer

A pre-agreed damage amount specified in the contract for breach

Answer

A clause requiring immediate cash payment

Answer

A clause limiting liability to contract price

Answer

A provision requiring arbitration of damages