IN Bar Contracts and Sales 2

Question 1

A merchant sends a signed written offer to sell 500 widgets, stating the offer will remain open for 60 days. Under UCC 2-205, when does the firm offer become revocable?

Accepted Answer

After 60 days as stated

Answer

A merchant's signed firm offer is irrevocable for the stated period up to a maximum of three months, so the 60-day term controls.

Question 2

A buyer accepts a seller's offer for goods but adds a term requiring arbitration of disputes. Both parties are merchants. Under UCC 2-207, the arbitration term becomes part of the contract unless:

Accepted Answer

It materially alters the contract, the offer limits acceptance to its terms, or the offeror timely objects

Answer

Between merchants, additional terms become part of the contract except where they materially alter it, the offer expressly limits acceptance, or objection is made within a reasonable time.

Question 3

A homeowner promises to pay a landscaper $5,000 for work the landscaper already completed voluntarily last month. Is the homeowner's promise enforceable at common law?

Accepted Answer

No, because past consideration is not valid consideration

Answer

A promise made in exchange for performance already rendered lacks bargained-for consideration and is generally unenforceable.

Question 4

A contractor agrees to build a barn for $50,000 but midway demands $10,000 more due to unexpected rock in the soil that neither party anticipated. The owner agrees. At common law, the modification is:

Accepted Answer

Enforceable, because unanticipated circumstances make it fair and equitable

Answer

Courts enforce modifications without new consideration when they are fair and equitable in light of circumstances not anticipated when the contract was made.

Question 5

A seller of goods repudiates a delivery contract. The buyer purchases substitute goods in good faith at a higher price. The buyer's damages under UCC 2-712 are measured by:

Accepted Answer

Cover price minus contract price, plus incidental and consequential damages, minus expenses saved

Answer

A covering buyer recovers the difference between the cover price and the contract price plus incidental and consequential damages, less expenses saved.

(IN Bar) Indiana Bar Exam Practice Test

(IN Bar) Indiana Bar Exam Practice Test

IN Bar Contracts and Sales 2