KS Bar Contracts 4

Question 1

When interpreting an ambiguous contract, courts apply the rule of 'contra proferentem.' What does this rule provide?

Accepted Answer

Ambiguities are resolved against the party who drafted the contract

Answer

Contra proferentem resolves ambiguities against the drafter because the drafter had the opportunity to use clear language.

Question 2

A subcontractor submits a bid that is used by a general contractor in preparing its own winning bid. The subcontractor then attempts to withdraw before a formal subcontract is signed. Under what theory may the general contractor recover?

Accepted Answer

Promissory estoppel

Answer

Courts apply promissory estoppel (as in Drennan v. Star Paving) to hold that reasonable reliance on a sub-bid before acceptance makes the bid irrevocable.

Question 3

Under the parol evidence rule, which type of evidence is ADMISSIBLE to explain or supplement a written contract that is only a partial integration?

Accepted Answer

Evidence of consistent additional terms not covered by the writing

Answer

When a writing is a partial integration, consistent additional terms may be shown by extrinsic evidence, but contradictory terms remain excluded.

Question 4

Which of the following is a valid exception to the preexisting duty rule that would allow modification of a contract without new consideration?

Accepted Answer

Unanticipated circumstances make the original contract significantly more burdensome

Answer

Under the Restatement (Second) § 89, a contract modification is enforceable without consideration if it is fair and equitable in light of unanticipated circumstances.

Question 5

A third-party beneficiary's rights under a contract vest, making the contract irrevocable as to the beneficiary, when the beneficiary does which of the following?

Accepted Answer

Materially changes position in justifiable reliance on the contract, assents, or brings suit

Answer

Under Restatement (Second) § 311, a third-party beneficiary's rights vest when the beneficiary manifests assent, materially changes position in reliance, or brings suit to enforce the promise.

(KS Bar) Kansas Bar Exam Practice Test

(KS Bar) Kansas Bar Exam Practice Test

KS Bar Contracts 4