MD Bar Contracts and Sales 3

Question 1

A Maryland farmer orally agrees to sell 1,000 bushels of wheat for $8,000. The buyer sends a signed written confirmation, and the farmer, a merchant, does not object within 10 days. The farmer later refuses to deliver, citing the statute of frauds. Who prevails?

Accepted Answer

The buyer, because the merchant confirmation exception satisfies the statute of frauds against the farmer

Answer

Under UCC 2-201(2), a signed written confirmation between merchants satisfies the statute of frauds against the recipient if not objected to within 10 days.

Question 2

A wedding venue contract requires a $10,000 payment if the couple cancels, regardless of when cancellation occurs. The couple cancels a year in advance and the venue rebooks the date at full price. The couple challenges the $10,000 provision. How should a court rule?

Accepted Answer

The provision is an unenforceable penalty because it is not a reasonable forecast of actual or anticipated harm

Answer

A liquidated damages clause is unenforceable as a penalty when it is not reasonably related to anticipated or actual damages, especially where no loss occurred.

Question 3

Seller ships nonconforming goods to Buyer, who accepts them without inspection. Two weeks later, Buyer discovers a latent defect substantially impairing their value. What may Buyer do?

Accepted Answer

Revoke acceptance within a reasonable time, because the defect was difficult to discover and substantially impairs value

Answer

UCC 2-608 permits revocation of acceptance when a nonconformity substantially impairs the goods' value and acceptance occurred without discovery due to the difficulty of detection.

Question 4

A general contractor uses a subcontractor's bid to compute its own winning bid on a project. The subcontractor then refuses to honor its bid. What doctrine best allows the general contractor to enforce the bid?

Accepted Answer

Promissory estoppel, making the sub-bid irrevocable due to foreseeable reliance

Answer

Under Drennan v. Star Paving reasoning, a subcontractor's bid is held open by promissory estoppel when the general contractor foreseeably relies on it in submitting its own bid.

Question 5

A contract requires a singer to perform at a concert hall on June 1. The hall burns down through no one's fault on May 20. The promoter sues the singer's agent for refusing alternate arrangements. What doctrine excuses performance?

Accepted Answer

Impossibility (impracticability), because destruction of the essential venue makes performance objectively impossible

Answer

Destruction of a thing essential to performance, without fault, discharges contractual duties under the doctrine of impossibility or impracticability.

(MD Bar) Maryland Bar Exam Practice Test

(MD Bar) Maryland Bar Exam Practice Test

MD Bar Contracts and Sales 3