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

Under UCC § 2-207(2), between merchants, additional terms in an acceptance become part of the contract unless they materially alter it, the offer limits acceptance to its terms, or the offeror timely objects.

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

Reformation allows a court to modify the written contract to conform to the parties' actual agreement when the writing fails to accurately reflect their mutual intent due to mistake or fraud.

Question 3

An assignment of contract rights is generally effective without:

Accepted Answer

Consent of the obligor

Answer

A valid assignment of contract rights does not require the obligor's consent — only notice is recommended to protect the assignee, but consent is not required for the assignment to be effective.

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

A liquidated damages clause is enforceable when (1) damages were difficult to estimate at contract formation and (2) the stipulated sum represents a reasonable forecast of actual damages — not a penalty.

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

The one-year provision of the statute of frauds requires a writing for contracts that cannot possibly be performed within one year from the date of making.

ID Bar - Idaho Bar Exam Practice Test

ID Bar - Idaho Bar Exam Practice Test

ID Bar Contracts 3