FYLSX Contracts Formation & Enforcement 2

Question 1

Under the UCC, a merchant's firm offer is irrevocable for up to how long even 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

Alice mails an acceptance on Monday. Bob mails a revocation on Tuesday. The revocation arrives Wednesday; the acceptance arrives Thursday. Is a contract formed?

Accepted Answer

Yes, because acceptance was effective upon dispatch under the mailbox rule.

Answer

Under the mailbox rule, acceptance is effective upon dispatch, so the contract was formed Monday when Alice mailed her acceptance—before the revocation was even sent.

Question 3

Which doctrine prevents enforcement of a contract term that is oppressive and results from unequal bargaining power?

Accepted Answer

Unconscionability

Answer

Unconscionability, recognized under UCC § 2-302 and common law, allows courts to refuse to enforce grossly unfair terms that result from unequal bargaining positions.

Question 4

Tom promises to pay his nephew $5,000 if the nephew quits smoking for one year. The nephew quits and completes the year. Which element makes this promise enforceable?

Accepted Answer

Forbearance from a legal right as consideration

Answer

The nephew's forbearance from his legal right to smoke constitutes valid consideration, making the uncle's promise enforceable.

Question 5

A contract is silent on price. Under the UCC, what price term is implied?

Accepted Answer

A reasonable price at the time of delivery

Answer

UCC § 2-305 allows a contract to be formed without a set price, implying a reasonable price at the time of delivery.

(FYLSX) Baby Bar Exam Practice Test

(FYLSX) Baby Bar Exam Practice Test

FYLSX Contracts Formation & Enforcement 2