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

Under Restatement (Second) § 311, a beneficiary's rights vest upon assent, material reliance, or filing suit, after which the parties cannot modify the contract to defeat those rights without consent.

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

Because the modified contract itself must satisfy the Statute of Frauds, an oral modification falls outside it and is unenforceable unless an exception like reliance or part performance applies.

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

Unconscionability (procedural + substantive) allows a court to refuse enforcement of a clause or the entire contract when the process and terms shock the conscience.

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

When duties are delegated, the delegatee takes on performance obligations, but the original delegator remains secondarily liable unless there is a novation releasing them.

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

UCC § 2-601's perfect tender rule allows a buyer to reject goods if they fail to conform to the contract in any way, however slight, subject to the seller's right to cure.

(IA Bar) Iowa Bar Exam Practice Test

(IA Bar) Iowa Bar Exam Practice Test

IA Bar Contracts 5