FYLSX Contracts Formation & Enforcement 5

Question 1

A modification of an existing contract requires new consideration under common law. Which of the following situations is an exception to this rule?

Accepted Answer

A modification under the UCC for the sale of goods

Answer

Under UCC § 2-209, a modification of a contract for the sale of goods needs no consideration to be binding, unlike under common law.

Question 2

Sue is 17 when she signs a contract to buy a car. Two months after turning 18, she continues driving the car and makes two payments. Sue has most likely:

Accepted Answer

Ratified the contract through her conduct after reaching majority.

Answer

A minor may disaffirm a contract upon or shortly after reaching majority, but retaining and using the subject matter and making payments constitutes ratification.

Question 3

Which of the following best illustrates promissory estoppel?

Accepted Answer

An employer promises a pension but the employee retires in reliance on the promise, and the employer reneges.

Answer

Promissory estoppel enforces a promise when the promisee reasonably relies on it to their detriment, even without traditional consideration.

Question 4

Under the parol evidence rule, extrinsic evidence of prior or contemporaneous agreements is generally inadmissible to:

Accepted Answer

Contradict or vary the terms of a fully integrated written agreement.

Answer

The parol evidence rule bars extrinsic evidence offered to contradict or vary the terms of a final, completely integrated written contract.

Question 5

Kevin contracts to buy Blackacre from Linda for $200,000, contingent on Kevin obtaining financing within 30 days. Kevin makes no effort to secure a loan. Linda sues. Who prevails?

Accepted Answer

Linda, because Kevin had an implied duty of good faith to attempt to satisfy the condition.

Answer

A party who prevents satisfaction of a condition through bad faith or lack of effort is treated as if the condition occurred, and Linda can enforce the contract.

(FYLSX) Baby Bar Exam Practice Test

(FYLSX) Baby Bar Exam Practice Test

FYLSX Contracts Formation & Enforcement 5