IL Bar Contracts 3

Question 1

Which doctrine allows a court to refuse enforcement of an unconscionable contract or clause?

Accepted Answer

Unconscionability under UCC § 2-302 and common law

Answer

Frustration of purpose

Answer

Impossibility

Answer

Mutual mistake

Question 2

An offer is terminated by operation of law upon:

Accepted Answer

The death or incapacity of the offeror

Answer

A counteroffer by the offeree

Answer

The offeree's silence

Answer

Passage of a reasonable amount of time without revocation

Question 3

Under the UCC battle of the forms (§ 2-207), additional terms in an acceptance between merchants become part of the contract unless:

Accepted Answer

The offer expressly limits acceptance to its terms, the terms materially alter the contract, or the offeror objects

Answer

The offeree objects to additional terms

Answer

The terms benefit only the offeree

Answer

The contract is for more than $500

Question 4

Mutual mistake in contract law allows rescission when both parties share an erroneous belief about:

Accepted Answer

A basic assumption of fact material to the agreed exchange

Answer

Future market conditions

Answer

The legal consequences of the contract

Answer

Each party's respective credit worthiness

Question 5

Consequential damages in a contract breach are recoverable only if they were:

Accepted Answer

Foreseeable to the breaching party at the time of contracting under Hadley v. Baxendale

Answer

Caused by the breach

Answer

Specifically listed in the contract

Answer

Greater than direct damages

Question 6

Specific performance as a contract remedy is available when:

Accepted Answer

Money damages are inadequate because the subject matter is unique, such as real estate

Answer

The plaintiff requests it in the complaint

Answer

The contract involves personal services

Answer

Both parties prefer it over damages