CP Contracts and Commercial Law 3

Question 1

What is promissory estoppel and when does it apply?

Accepted Answer

A doctrine enforcing a promise without consideration when the promisor should have expected reliance and injustice can only be avoided by enforcement

Answer

Promissory estoppel enforces a promise when the promisor should expect reliance, the promisee actually relies to their detriment, and enforcement prevents injustice.

Question 2

Under the UCC, what is a merchant and why does it matter?

Accepted Answer

A person who deals in goods of the kind or holds themselves out as having special knowledge, subject to higher UCC standards

Answer

Under UCC 2-104, a merchant is held to higher standards including implied warranty of merchantability and the firm offer rule.

Question 3

What is the duty to mitigate damages in contract law?

Accepted Answer

A requirement that the non-breaching party take reasonable steps to minimize losses from a breach

Answer

The duty to mitigate requires the injured party to take reasonable steps to reduce losses after breach.

Question 4

What constitutes a material breach of contract?

Accepted Answer

A breach so substantial it defeats the contract's purpose and excuses further performance by the non-breaching party

Answer

A material breach goes to the essence of the contract, substantially depriving the injured party of expected benefit.

Question 5

What is an assignment of contract rights?

Accepted Answer

The transfer of rights under a contract from one party to a third party

Answer

An assignment transfers contractual rights from the assignor to an assignee who can then enforce the contract.

(CP) NALA Certified Paralegal Practice Test

(CP) NALA Certified Paralegal Practice Test

CP Contracts and Commercial Law 3