Contracts Flashcards
7 cards from real IA BAR practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Contracts flashcards as text
The parol evidence rule bars extrinsic evidence offered to:
Answer: Contradict or vary the terms of a fully integrated written agreement
The parol evidence rule prevents prior or contemporaneous extrinsic evidence from contradicting or varying the final, fully integrated written agreement.
A contract entered into because of mutual mistake of fact may be voidable if the mistake concerns:
Answer: A basic assumption on which the contract was made
Mutual mistake doctrine requires the shared mistaken belief to concern a basic assumption of the contract that materially affects the agreed exchange.
Which element distinguishes an illusory promise from a valid contractual promise?
Answer: The promisor retains the unlimited right to cancel or not perform
An illusory promise lacks mutuality of obligation because the promisor is not actually bound to do anything, making it insufficient consideration.
Under the UCC battle of the forms rule (§ 2-207), additional terms in an acceptance between merchants become part of the contract unless:
Answer: The offer expressly limits acceptance to its terms, the new terms materially alter the contract, or timely objection is made
UCC § 2-207(2) lists three conditions — limitation in the offer, material alteration, or timely objection — any of which knocks out additional merchant terms.
Which of the following best describes the concept of promissory estoppel?
Answer: Enforcement of a promise that induced reasonable, detrimental reliance even without consideration
Promissory estoppel (Restatement § 90) enforces a promise lacking consideration when the promisee reasonably relied on it to their detriment and injustice can only be avoided by enforcement.
When is a non-compete covenant in an employment contract most likely enforceable in Iowa?
Answer: When it is reasonable in scope, duration, and geographic area and protects a legitimate business interest
Iowa courts apply a reasonableness standard: the covenant must protect a legitimate interest and not impose an undue burden on the employee or the public.
A condition precedent in a contract must occur before:
Answer: A party's duty to perform becomes absolute
A condition precedent is an event that must occur before a contractual duty to perform is triggered; if the condition fails, the duty never arises.