MA Bar Contracts 1 — Questions and Answers
Question 1: Under the common law mirror image rule, an acceptance that varies the terms of an offer is treated as:
- A valid acceptance with modified terms
- A counter-offer that rejects the original offer (Correct answer)
- A binding contract on the offeror's terms
- Void ab initio
Correct answer: A counter-offer that rejects the original offer
Under the common law mirror image rule, an acceptance that differs in any material term from the offer operates as a rejection and counter-offer rather than an acceptance.
Question 2: Which doctrine allows a court to enforce a promise even without consideration if the promisor should have expected the promisee to rely on the promise?
- Quasi-contract
- Promissory estoppel (Correct answer)
- Mutual mistake
- Accord and satisfaction
Correct answer: Promissory estoppel
Promissory estoppel (detrimental reliance) allows enforcement of a promise without consideration when the promisor reasonably expected reliance, the promisee did rely, and injustice can only be avoided by enforcement.
Question 3: The Statute of Frauds requires contracts for the sale of goods valued at $500 or more to be:
- Notarized
- In writing and signed by the party to be charged (Correct answer)
- Witnessed by two parties
- Filed with a government agency
Correct answer: In writing and signed by the party to be charged
Under UCC § 2-201, contracts for the sale of goods for $500 or more must be in a writing sufficient to indicate a contract was made and signed by the party against whom enforcement is sought.
Question 4: Under Massachusetts law, a covenant not to compete is enforceable only if it:
- Is unlimited in duration
- Is narrowly drawn as to time, geography, and scope of activity (Correct answer)
- Applies to all former employees universally
- Is included in the employee handbook
Correct answer: Is narrowly drawn as to time, geography, and scope of activity
Massachusetts enforces non-compete agreements only if they are reasonable in duration, geographic scope, and type of activity restricted, and are supported by consideration.
Question 5: Which contract remedy places the non-breaching party in the position they were in before the contract was made?
- Expectation damages
- Consequential damages
- Restitution/reliance damages (Correct answer)
- Specific performance
Correct answer: Restitution/reliance damages
Restitution or reliance damages restore the non-breaching party to their pre-contract position by recovering what was conferred on the breaching party or costs incurred in reliance.
Question 6: Under the UCC, a merchant's firm offer is irrevocable without consideration for a period not exceeding:
- 30 days
- 60 days
- 90 days (Correct answer)
- 180 days
Correct answer: 90 days
UCC § 2-205 provides that a merchant's signed, written firm offer is irrevocable for the time stated or, if no time is stated, for a reasonable time, but in no event exceeding three months (90 days).
MA Bar Contracts 1
Under the common law mirror image rule, an acceptance that varies the terms of an offer is treated as: