MA Bar Contracts 3

Question 1

Which doctrine allows rescission of a contract when one party's assent was induced by the other's fraudulent misrepresentation?

Accepted Answer

Fraud in the inducement

Answer

Unilateral mistake

Answer

Illegality

Answer

Failure of consideration

Question 2

Under the UCC perfect tender rule for goods contracts, a buyer may reject goods if:

Accepted Answer

The goods or delivery fail to conform to the contract in any respect

Answer

Only if the defect is substantial and material

Answer

Only if the seller had actual knowledge of the defect

Answer

The goods fail to conform and the seller cannot cure

Question 3

An accord and satisfaction discharges a contractual duty when:

Accepted Answer

The creditor accepts a lesser payment as full satisfaction of a disputed debt

Answer

A court reduces the judgment amount

Answer

The debtor files for bankruptcy

Answer

The statute of limitations expires

Question 4

Which type of condition must occur before a party's contractual duty to perform arises?

Accepted Answer

Condition precedent

Answer

Condition subsequent

Answer

Concurrent condition

Answer

Implied condition

Question 5

Under Massachusetts law, the implied covenant of good faith and fair dealing applies to:

Accepted Answer

All contracts, implying that neither party will act to deprive the other of the contract's benefits

Answer

Only employment contracts

Answer

Only consumer contracts regulated by the Attorney General

Answer

Only contracts exceeding $10,000

Question 6

Specific performance as a contract remedy is typically available when:

Accepted Answer

The subject matter of the contract is unique, such as real property

Answer

The breach was willful or intentional

Answer

Money damages are adequate to compensate the plaintiff

Answer

The contract involves personal services