FYLSX Contract Formation Principles 4

Question 1

Wanda contracts to buy 500 widgets from Xavier's Widget Co. at $2 each. This is a contract for goods. Under the UCC, which statement about the consideration requirement is correct?

Accepted Answer

The UCC still requires consideration but allows contract modification without new consideration.

Answer

Under UCC § 2-209, modifications to a sale-of-goods contract need no consideration to be binding, unlike the common law rule.

Question 2

Yolanda is negotiating a business deal with Zachary. They reach what both believe is an agreement, but Zachary is joking and never intends to be bound. Yolanda, believing it genuine, begins performance. Under contract law:

Accepted Answer

A contract exists if Zachary's outward expressions would lead a reasonable person to believe he intended to be bound.

Answer

The objective theory of contracts binds Zachary because his outward expressions created a reasonable belief of assent, regardless of his secret intent.

Question 3

Amy offers to sell her bicycle to Bob for $300. Bob says, 'Deal, but can you throw in the helmet?' Amy says no, and Bob says, 'Fine, I'll take just the bike for $300.' Is there a contract for the bicycle?

Accepted Answer

Yes, because Bob's inquiry was merely a request for additional terms, not a counteroffer.

Answer

A mere inquiry about additional terms is not a counteroffer and does not terminate the original offer, so Bob's final acceptance creates a valid contract.

Question 4

Carol enters a contract with Dan under duress — Dan threatened to destroy Carol's car unless she signed. The contract is:

Accepted Answer

Voidable at Carol's option because her assent was not genuine.

Answer

Economic or physical duress makes a contract voidable by the victim because it negates genuine assent.

Question 5

Eve, a skilled art dealer, tells Frank (a layperson) that a painting is worth $50,000, knowing it is only worth $5,000. Frank buys it for $50,000. This contract may be voided based on:

Accepted Answer

Fraudulent misrepresentation by Eve.

Answer

Eve's knowing false statement of a material fact to induce Frank's reliance constitutes fraudulent misrepresentation, making the contract voidable.

(FYLSX) Baby Bar Exam Practice Test

(FYLSX) Baby Bar Exam Practice Test

FYLSX Contract Formation Principles 4