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

Unconscionability, codified in UCC § 2-302 and recognized at common law, permits courts to refuse to enforce contracts or clauses that are oppressively one-sided or that resulted from unfair bargaining.

Question 2

An offer is terminated by operation of law upon:

Accepted Answer

The death or incapacity of the offeror

Answer

An offer terminates automatically upon the death or legal incapacity of either party, lapse of time, destruction of subject matter, or supervening illegality.

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

UCC § 2-207(2) excludes additional terms between merchants if the offer limits acceptance to its terms, the additions materially alter the original contract, or the offeror objects within a reasonable time.

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

Mutual mistake justifies rescission when both parties operate under a shared erroneous belief about a basic fact that materially affects the agreed exchange, provided the risk was not allocated to the mistaken party.

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

Under the Hadley v. Baxendale foreseeability rule, consequential damages are only recoverable if they were within the reasonable contemplation of both parties at the time of contracting.

IL Bar - Illinois Bar Exam Practice Test

IL Bar - Illinois Bar Exam Practice Test

IL Bar Contracts 3