Contracts Flashcards

Under the UCC, a merchant's firm offer to buy or sell goods is irrevocable for up to how long without consideration?

Answer: 3 months

UCC § 2-205 makes a merchant's signed, written firm offer irrevocable for the stated period or a reasonable time, not exceeding 3 months.

Which doctrine excuses a party's non-performance when an unforeseen event destroys the specific subject matter of the contract?

Answer: Impossibility of performance

Impossibility (also called objective impossibility) excuses performance when the specific subject matter is destroyed through no fault of either party.

A contract for the sale of real property is enforceable under the Statute of Frauds only if it is:

Answer: Signed by the party to be charged

The Statute of Frauds requires a writing signed by the party against whom enforcement is sought; notarization and recording are not required for contract enforcement.

Under the Restatement (Second) of Contracts, an anticipatory repudiation occurs when a party:

Answer: Unequivocally states it will not perform before performance is due

Anticipatory repudiation requires an unequivocal refusal to perform communicated before the performance date arrives.

What is the primary remedy the non-breaching party receives when a court awards specific performance?

Answer: A court order compelling the breaching party to perform

Specific performance is an equitable remedy directing the breaching party to fulfill its contractual obligations as promised.

Under the mailbox rule, an acceptance by mail is generally effective:

Answer: When the offeree deposits the letter in the mail

The mailbox rule makes acceptance effective upon proper dispatch, protecting the offeree from the risk of transmission delay.

In a bilateral contract, the consideration flowing from each party is:

Answer: A promise exchanged for another promise

A bilateral contract consists of mutual promises — each party's promise serves as consideration for the other's promise.