Contracts and Sales Flashcards
7 cards from real DE BAR practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Contracts and Sales flashcards as text
A buyer discovers a breach of warranty after accepting goods. What must the buyer do to preserve a remedy against the seller?
Answer: Notify the seller of the breach within a reasonable time after discovering it
UCC 2-607 bars any remedy for an accepted tender unless the buyer notifies the seller of the breach within a reasonable time after discovery.
A car dealer sells a used car 'as is.' The engine fails a week later. Which warranty claim is most clearly barred?
Answer: The implied warranty of merchantability, which 'as is' language disclaims
Expressions like 'as is' effectively disclaim implied warranties under UCC 2-316, but they do not negate express warranties, fraud, or title warranties.
Both parties contract to sell a cow they believe is barren; the cow turns out to be fertile and far more valuable. What doctrine may allow rescission?
Answer: Mutual mistake going to a basic assumption of the contract
As in Sherwood v. Walker, a mutual mistake about a basic assumption that materially affects the exchange permits rescission.
A buyer reasonably believes the seller will not perform and demands adequate assurance in writing. The seller ignores the demand for 45 days. What may the buyer do under the UCC?
Answer: Treat the contract as repudiated after a commercially reasonable time not exceeding 30 days without assurances
Under UCC 2-609, failure to provide adequate assurance within a reasonable time, capped at 30 days, is a repudiation.
A seller resells goods after the buyer wrongfully rejects them, but recovers less than the contract price. The seller is a dealer with an unlimited supply of the goods. What additional recovery may the seller seek?
Answer: Lost profits as a lost volume seller, because the resale did not substitute for the broken sale
A lost volume seller may recover the profit it would have made on the broken sale under UCC 2-708(2) because it could have made both sales.
An employer orally promises an employee lifetime employment, and the employee turns down another job. The employer fires the employee after two years. Does the Statute of Frauds bar enforcement of the oral promise?
Answer: No, because lifetime employment could be fully performed within one year if the employee dies
The one-year provision applies only to contracts incapable of completion within a year, and a lifetime contract can end within a year upon death.
A thief steals goods and sells them to a good-faith purchaser for value. The original owner sues the purchaser to recover the goods. Who prevails?
Answer: The original owner, because a thief has void title and can pass none
A thief acquires void title, so even a good-faith purchaser for value receives no title against the true owner; voidable title and entrustment rules do not apply to stolen goods.