MD Bar Contracts and Sales 2

Question 1

A Maryland retailer emails a wholesaler: "Will sell you 500 widgets at $10 each, offer firm for 10 days." Both are merchants and the email is signed.
On day 5, the wholesaler tries to accept, but the retailer had revoked on day 3.
Is a contract formed?

Accepted Answer

Yes, because a signed merchant's firm offer under UCC 2-205 is irrevocable for the stated period

Answer

No, because no consideration was given to keep the offer open

Answer

No, because an offer is always revocable before acceptance

Answer

Yes, but only if the wholesaler had begun performance before revocation

Question 2

A homeowner promises to pay a landscaper $5,000 for work the landscaper voluntarily completed last month. The landscaper sues when the homeowner refuses to pay. What is the homeowner's best defense?

Accepted Answer

The promise lacks consideration because past consideration is not valid consideration

Answer

The statute of frauds bars enforcement of oral service contracts

Answer

The landscaper failed to mitigate damages

Answer

The promise is unenforceable because it was not in writing

Question 3

Buyer and Seller sign a written contract for the sale of land containing a merger clause. Buyer later claims Seller orally promised, before signing, to repave the driveway. Under the parol evidence rule, may Buyer introduce this oral promise?

Accepted Answer

No, because a fully integrated agreement bars evidence of prior oral terms that contradict or supplement it

Answer

Yes, because oral promises are always admissible to explain a writing

Answer

Yes, because the parol evidence rule applies only to sales of goods

Answer

No, because the statute of frauds bars all oral evidence concerning land

Question 4

A contractor agrees to build a deck for $20,000. Midway through, the contractor demands $5,000 more due to rising lumber costs, and the homeowner agrees. Under common law, is the modification enforceable?

Accepted Answer

No, unless supported by new consideration or unanticipated circumstances making it fair and equitable

Answer

Yes, because contract modifications never require consideration

Answer

Yes, because the homeowner's agreement constitutes a waiver

Answer

No, because all modifications must be in writing

Question 5

A merchant buyer sends a purchase order for goods, and the merchant seller responds with a confirmation adding an arbitration clause. Neither form limits acceptance to its own terms and the buyer does not object. Under UCC 2-207, is the arbitration clause part of the contract?

Accepted Answer

It becomes part of the contract unless it materially alters the agreement or the buyer objects within a reasonable time

Answer

It is automatically part of the contract because the buyer failed to object

Answer

It is never part of the contract because acceptance must mirror the offer

Answer

The contract fails entirely because the forms do not match

Question 6

A buyer contracts to purchase a rare painting for $50,000. The seller repudiates before delivery. Which remedy is the buyer most likely to obtain?

Accepted Answer

Specific performance, because the painting is unique and money damages are inadequate

Answer

Punitive damages for the seller's willful breach

Answer

Rescission and restitution only

Answer

Nominal damages, because no market price exists

Question 7

An uncle promises his nephew $10,000 if the nephew graduates from law school. Relying on this, the nephew enrolls and incurs debt, but the uncle revokes before graduation. What is the nephew's best theory of recovery if consideration is found lacking?

Accepted Answer

Promissory estoppel, because he reasonably and foreseeably relied to his detriment

Answer

Quasi-contract, because the uncle was unjustly enriched

Answer

Third-party beneficiary rights under the enrollment contract

Answer

Anticipatory repudiation entitling him to full expectation damages automatically