IA Bar Contracts 5

Question 1

A third-party beneficiary's rights under a contract vest when the beneficiary:

Accepted Answer

Learns of the contract and assents to it, relies on it, or brings suit to enforce it

Answer

Is named in the contract document

Answer

Provides independent consideration to one of the contracting parties

Answer

Receives written notice from both contracting parties

Question 2

In Iowa, an oral modification of a written contract that falls within the Statute of Frauds is generally:

Accepted Answer

Unenforceable unless supported by promissory estoppel or partial performance

Answer

Fully enforceable if both parties agreed to it

Answer

Enforceable only if the modification reduces the contract price

Answer

Valid if the original contract term was less than one year

Question 3

Which doctrine allows a court to refuse enforcement of a contract clause that is oppressively one-sided and the product of unequal bargaining power?

Accepted Answer

Unconscionability

Answer

Duress

Answer

Undue influence

Answer

Non est factum

Question 4

A delegation of contractual duties differs from an assignment of rights because a delegation:

Accepted Answer

Transfers the burden of performance to a third party but does not release the delegator from liability

Answer

Requires consideration to be effective

Answer

Extinguishes the original party's obligations automatically

Answer

Can only occur after full performance has begun

Question 5

Under the perfect tender rule applicable to UCC goods contracts, the buyer may reject goods that:

Accepted Answer

Fail to conform to the contract in any respect

Answer

Contain only minor defects that do not affect the goods' use

Answer

Are delivered more than three days late

Answer

Are valued less than the contract price at time of delivery

Question 6

Which of the following best describes a novation?

Accepted Answer

Substituting a new party for an original party with the obligee's consent, releasing the original party

Answer

Adding a new party to the contract while keeping all original parties bound

Answer

Modifying the payment terms of an existing contract

Answer

Rescinding the contract and entering a new one with different subject matter

Question 7

Under the doctrine of substantial performance, a party who has substantially but not perfectly performed is entitled to:

Accepted Answer

The contract price minus damages for the deficiency in performance

Answer

The full contract price with no deduction

Answer

No payment because complete performance is required

Answer

Restitution only for the value of work completed