GA Bar Contracts and Sales 2 — Questions and Answers
Question 1: Under UCC 2-207, when a non-merchant offeree's acceptance includes additional terms not in the offer, what happens to those additional terms?
- The contract fails for lack of mutual assent
- A contract forms but the additional terms are mere proposals that do not automatically become part of the contract (Correct answer)
- A contract forms and the additional terms automatically become part of the contract
- The acceptance is treated as a rejection and counter-offer
Correct answer: A contract forms but the additional terms are mere proposals that do not automatically become part of the contract
Under UCC 2-207, between non-merchants, additional terms in an acceptance are treated as proposals to modify the contract and do not become part of it unless the offeror expressly agrees.
Question 2: A merchant's firm offer under UCC Article 2 is irrevocable without consideration for up to how long?
- 30 days
- 60 days
- 3 months (Correct answer)
- 6 months
Correct answer: 3 months
Under UCC 2-205, a merchant's signed written firm offer is irrevocable for the time stated or a reasonable time, not to exceed 3 months, without consideration.
Question 3: Past consideration as the basis for a new promise is generally:
- Sufficient if the promisor had a moral obligation
- Sufficient when evidenced by a writing
- Insufficient because it was not bargained for in exchange for the new promise (Correct answer)
- Sufficient between merchants under the UCC
Correct answer: Insufficient because it was not bargained for in exchange for the new promise
Past consideration fails because it predates the promise and was not given in exchange for it; the bargained-for exchange element of consideration is missing.
Question 4: An illusory promise fails as consideration because:
- It is not in writing
- The promisor retains complete discretion to perform or not, creating no real obligation (Correct answer)
- It involves a future act rather than a present one
- It is conditioned on an uncertain future event
Correct answer: The promisor retains complete discretion to perform or not, creating no real obligation
An illusory promise is not valid consideration because the promisor is not actually bound to do anything, so there is no mutuality of obligation.
Question 5: Under the mailbox rule, an acceptance sent by mail is effective:
- When the offeror receives it
- When the offeror reads it
- When the offeree deposits it in the mail using a reasonable means of communication (Correct answer)
- When the offeree decides to accept
Correct answer: When the offeree deposits it in the mail using a reasonable means of communication
The mailbox rule makes acceptance effective upon dispatch, meaning a contract is formed at the moment the offeree sends the acceptance, before the offeror receives it.
Question 6: In a unilateral contract, acceptance is complete when:
- The offeree promises to perform
- The offeree begins performance
- The offeree notifies the offeror of intent to perform
- The offeree fully completes the requested performance (Correct answer)
Correct answer: The offeree fully completes the requested performance
A unilateral contract is accepted only upon full completion of the requested act; a promise to perform or beginning performance does not constitute acceptance.
Question 7: Which of the following will NOT prevent revocation of an offer under common law?
- The offeree pays consideration to keep the offer open for 30 days
- The offeree begins performance of a unilateral contract
- The offeree sends a letter of intent stating they plan to accept (Correct answer)
- The parties enter a written option contract
Correct answer: The offeree sends a letter of intent stating they plan to accept
A mere expression of intent to accept does not make an offer irrevocable; an offer remains revocable until a binding option is formed or performance begins on a unilateral contract.
GA Bar Contracts and Sales 2
Under UCC 2-207, when a non-merchant offeree's acceptance includes additional terms not in the offer, what happens to those additional terms?