Contracts Flashcards
7 cards from real KS BAR practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Contracts flashcards as text
Which measure of damages is designed to put the non-breaching party in the position they were in before the contract was made?
Answer: Reliance damages
Reliance damages reimburse the non-breaching party for expenditures made in preparation for or in performance of the contract, restoring the pre-contract position.
Under the Restatement (Second), a contract may be voidable for mutual mistake when the mistake concerns which type of fact?
Answer: A basic assumption of the contract that materially affects the agreed exchange
Restatement (Second) § 152 allows avoidance for mutual mistake only when it concerns a basic assumption of the contract and materially affects the agreed exchange of performances.
What distinguishes a condition precedent from a promise in contract law?
Answer: Non-occurrence of a condition precedent excuses performance without liability; breach of a promise creates liability
If a condition precedent does not occur, the obligor's duty never arises and no breach occurs; failure to perform a promise, however, constitutes a breach creating liability.
A buyer rejects a non-conforming tender of goods under the UCC perfect tender rule. What right does the seller have if time remains in the contract period?
Answer: The right to cure by making a conforming delivery within the contract time
UCC § 2-508 grants the seller a right to cure a non-conforming tender if the time for performance has not yet expired and the seller seasonably notifies the buyer.
Which equitable remedy compels a party to perform its contractual obligations rather than paying damages?
Answer: Specific performance
Specific performance is an equitable remedy ordered when monetary damages are inadequate, most commonly in contracts for unique goods or real property.
Under promissory estoppel, what must a plaintiff show to recover even without consideration?
Answer: A clear promise, foreseeable and actual reliance, and injustice that can only be avoided by enforcement
Restatement (Second) § 90 requires a promise that the promisor should reasonably expect to induce reliance, actual reliance, and a showing that injustice can only be avoided by enforcement.
A contract clause states that neither party shall be liable for 'acts of God.' A flood destroys the seller's warehouse. Under what doctrine would the seller also argue non-performance is excused at common law?
Answer: Impossibility or impracticability
The doctrine of impossibility (or commercial impracticability under UCC § 2-615) excuses performance when an unforeseeable supervening event makes performance objectively impossible or commercially impracticable.