ID Bar Contracts 3

Question 1

Under UCC Article 2, the 'battle of the forms' provision (§ 2-207) provides that between merchants, additional terms in an acceptance:

Accepted Answer

Automatically become part of the contract unless they materially alter it or are objected to

Answer

Never become part of the contract

Answer

Require written consent from both parties to be included

Answer

Void the contract entirely

Question 2

Which remedy allows a court to rewrite a contract to reflect the parties' true intent when the written agreement does not accurately reflect their agreement due to a mutual mistake?

Accepted Answer

Reformation

Answer

Rescission

Answer

Specific performance

Answer

Restitution

Question 3

An assignment of contract rights is generally effective without:

Accepted Answer

Consent of the obligor

Answer

Notice to the obligor

Answer

Written documentation

Answer

Consideration

Question 4

Under the common law, a liquidated damages clause is enforceable only if:

Accepted Answer

Actual damages were difficult to estimate and the stipulated amount is a reasonable forecast

Answer

It is punitive to deter breach

Answer

Both parties have equal bargaining power

Answer

It is approved by a court before breach occurs

Question 5

Which of the following contracts is within the statute of frauds under the common law?

Accepted Answer

A contract that cannot be performed within one year from its making

Answer

A one-year employment contract

Answer

An oral promise to pay a debt discharged in bankruptcy

Answer

A contract for the sale of goods under $500

Question 6

A third-party beneficiary can enforce a contract against the promisor when:

Accepted Answer

The third party is an intended beneficiary under the contract

Answer

The third party is incidentally benefited by the contract

Answer

The third party was present when the contract was signed

Answer

The third party provides separate consideration