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

Under UCC 2-205, a signed writing by a merchant giving assurance an offer will be held open is irrevocable without consideration for the stated time, up to three months.

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

A promise made in exchange for services already performed is supported only by past consideration, which is generally insufficient to form a contract.

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

A merger clause indicates full integration, and the parol evidence rule excludes prior or contemporaneous oral terms offered to supplement or contradict a fully integrated writing.

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

Under the common law pre-existing duty rule, a modification requires new consideration unless fair and equitable in light of unanticipated circumstances.

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

Between merchants, additional terms in an acceptance become part of the contract unless they materially alter it, the offer limits acceptance to its terms, or objection is made; arbitration clauses are often held to be material alterations.

(MD Bar) Maryland Bar Exam Practice Test

(MD Bar) Maryland Bar Exam Practice Test

MD Bar Contracts and Sales 2