IL Bar Contracts 2

Question 1

An anticipatory repudiation occurs when a party:

Accepted Answer

Unequivocally indicates before the due date that they will not perform

Answer

Fails to perform on the due date

Answer

Requests a modification to the contract

Answer

Performs defectively

Question 2

The parol evidence rule prevents admission of prior or contemporaneous oral agreements to:

Accepted Answer

Contradict or vary the terms of a final integrated written contract

Answer

Supplement an incomplete written contract

Answer

Explain ambiguous terms in a writing

Answer

Establish that a condition precedent was not fulfilled

Question 3

Expectation damages in contract law are designed to put the non-breaching party:

Accepted Answer

In the position they would have been in had the contract been performed

Answer

In the position they were in before the contract

Answer

In a better position than performance would have provided

Answer

Only in a position to recover out-of-pocket losses

Question 4

In Illinois, the implied covenant of good faith and fair dealing in contracts:

Accepted Answer

Is implied in every contract and governs the exercise of discretion within contract terms

Answer

Creates independent causes of action in all commercial contracts

Answer

Overrides express contract terms when inequitable

Answer

Applies only to insurance contracts

Question 5

Under the doctrine of frustration of purpose, a contract may be discharged when:

Accepted Answer

The principal purpose of the contract has been substantially frustrated by an unforeseeable event

Answer

Performance becomes physically impossible

Answer

One party changes their mind about the value of the deal

Answer

Costs of performance increase dramatically

Question 6

A liquidated damages clause is enforceable in Illinois if:

Accepted Answer

Damages were difficult to estimate at the time of contracting and the amount is a reasonable forecast of actual harm

Answer

It is labeled as liquidated damages in the contract

Answer

It exceeds actual damages

Answer

Both parties are sophisticated commercial entities