CPCM Certified Professional Contract Manager: Contract Law and Legal Frameworks 2

Question 1

Under the UCC Article 2, a merchant's firm offer is irrevocable for up to how long without consideration?

Accepted Answer

3 months

Answer

UCC §2-205 makes a merchant's signed, written firm offer irrevocable for the stated period or a reasonable time, but no longer than three months.

Question 2

Which doctrine allows a court to refuse enforcement of an unconscionable contract clause even if both parties agreed to it?

Accepted Answer

Unconscionability

Answer

Unconscionability under UCC §2-302 and common law allows courts to refuse enforcement of terms that are oppressively one-sided or shock the conscience.

Question 3

In contract law, what is the 'mailbox rule'?

Accepted Answer

Acceptance is effective when dispatched by the offeree

Answer

The mailbox rule (deposited acceptance rule) holds that acceptance is effective at the moment it is properly dispatched, not when received.

Question 4

A contractor claims additional compensation citing a cardinal change to the contract scope. What distinguishes a cardinal change from an ordinary change order?

Accepted Answer

A cardinal change alters the work so drastically it falls outside the original contract scope

Answer

A cardinal change so fundamentally alters the contract that it constitutes a breach, entitling the contractor to rescission or breach damages rather than just equitable adjustment.

Question 5

Which legal theory allows recovery for unjust enrichment when no valid contract exists?

Accepted Answer

Quantum meruit

Answer

Quantum meruit ('as much as deserved') is a quasi-contractual remedy allowing recovery of the reasonable value of services rendered to prevent unjust enrichment.

CPCM Exam Practice Test

CPCM Exam Practice Test

CPCM Certified Professional Contract Manager: Contract Law and Legal Frameworks 2