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

The parol evidence rule prevents prior or contemporaneous extrinsic evidence from contradicting or varying the final, fully integrated written agreement.

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

Mutual mistake doctrine requires the shared mistaken belief to concern a basic assumption of the contract that materially affects the agreed exchange.

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

An illusory promise lacks mutuality of obligation because the promisor is not actually bound to do anything, making it insufficient consideration.

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

UCC § 2-207(2) lists three conditions — limitation in the offer, material alteration, or timely objection — any of which knocks out additional merchant terms.

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

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.

(IA Bar) Iowa Bar Exam Practice Test

(IA Bar) Iowa Bar Exam Practice Test

IA Bar Contracts 3