IN Bar Contracts and Sales 1

Question 1

What is the mailbox rule in contract law?

Accepted Answer

An acceptance is effective when dispatched by the offeree, not when received by the offeror

Answer

The mailbox rule provides that an acceptance becomes effective at the moment of dispatch (when mailed), creating a contract even before the offeror receives it.

Question 2

What is consideration in contract formation?

Accepted Answer

A bargained-for exchange of legal value between the parties

Answer

Consideration is the legal concept requiring each party to give something of value — a promise, performance, or forbearance — in exchange for the other's promise or performance.

Question 3

What is promissory estoppel?

Accepted Answer

A doctrine enforcing promises when a party reasonably relied on the promise to their detriment

Answer

Promissory estoppel allows enforcement of a promise without consideration when the promisor should have expected reliance, the promisee did rely to their detriment, and injustice can only be avoided by enforcement.

Question 4

What is the statute of frauds?

Accepted Answer

Certain contracts must be in writing to be enforceable, including land sales and contracts not performable within one year

Answer

The statute of frauds requires a signed writing for certain categories of contracts including land sales, contracts not performable within one year, surety agreements, and contracts for goods over $500 under the UCC.

Question 5

What is a material breach of contract?

Accepted Answer

A breach so substantial that it excuses the non-breaching party from further performance

Answer

A material breach is a failure to perform a substantial part of the contract, going to the essence of the agreement and depriving the other party of the expected benefit.

(IN Bar) Indiana Bar Exam Practice Test

(IN Bar) Indiana Bar Exam Practice Test

IN Bar Contracts and Sales 1