IA Bar Contracts 3

Question 1

The parol evidence rule bars extrinsic evidence offered to:

Accepted Answer

Contradict or vary the terms of a fully integrated written agreement

Answer

Establish a condition precedent to the contract's effectiveness

Answer

Show that fraud induced the written contract

Answer

Demonstrate that a term is ambiguous

Question 2

A contract entered into because of mutual mistake of fact may be voidable if the mistake concerns:

Accepted Answer

A basic assumption on which the contract was made

Answer

The future market value of the subject matter

Answer

One party's subjective purpose for entering the contract

Answer

The adequacy of the consideration exchanged

Question 3

Which element distinguishes an illusory promise from a valid contractual promise?

Accepted Answer

The promisor retains the unlimited right to cancel or not perform

Answer

The promise is made orally rather than in writing

Answer

The promise is conditioned on an uncertain future event

Answer

The promise involves a pre-existing legal duty

Question 4

Under the UCC battle of the forms rule (§ 2-207), additional terms in an acceptance between merchants become part of the contract unless:

Accepted Answer

The offer expressly limits acceptance to its terms, the new terms materially alter the contract, or timely objection is made

Answer

The original offer was made orally

Answer

The goods involved are worth more than $500

Answer

The additional terms are proposed more than 30 days after the offer

Question 5

Which of the following best describes the concept of promissory estoppel?

Accepted Answer

Enforcement of a promise that induced reasonable, detrimental reliance even without consideration

Answer

A court's refusal to enforce an unconscionable term

Answer

Rescission of a contract based on fraudulent inducement

Answer

Modification of a contract without additional consideration under the UCC

Question 6

When is a non-compete covenant in an employment contract most likely enforceable in Iowa?

Accepted Answer

When it is reasonable in scope, duration, and geographic area and protects a legitimate business interest

Answer

When it has no geographic or time limitation

Answer

When it is signed at any time during employment

Answer

When the employee earns above a statutory wage threshold

Question 7

A condition precedent in a contract must occur before:

Accepted Answer

A party's duty to perform becomes absolute

Answer

The contract is validly formed

Answer

Either party can seek damages for breach

Answer

The statute of limitations begins to run