MD Bar Contracts and Sales 4

Question 1

A father contracts with a landscaper to maintain his adult daughter's lawn for one year, telling the landscaper the work is a gift to her. After six months, the landscaper stops performing. May the daughter sue the landscaper?

Accepted Answer

Yes, as an intended donee beneficiary whose rights vested when she learned of and relied on the contract

Answer

An intended donee beneficiary may enforce the contract once her rights vest, such as through knowledge of and reliance on the promise.

Question 2

A dealer sells a used car "as is" to a consumer buyer. The engine fails a week later. Which warranty claim, if any, survives?

Accepted Answer

None of the implied warranties, because "as is" language effectively disclaims the implied warranties of merchantability and fitness

Answer

Under UCC 2-316, expressions like "as is" call the buyer's attention to the exclusion of warranties and disclaim implied warranties absent contrary statute.

Question 3

An employer and employee sign a two-year employment contract. After one year, the employer says, "I will not pay you next month or ever again." What may the employee do immediately?

Accepted Answer

Treat the statement as an anticipatory repudiation, terminate the contract, and sue for damages at once

Answer

An unequivocal statement of intent not to perform is an anticipatory repudiation, allowing the non-breaching party to sue immediately without awaiting the performance date.

Question 4

A contract for the sale of a business includes a clause that all disputes "arising under" it are subject to conditions precedent of written notice within 30 days. The buyer sues without giving notice. What result?

Accepted Answer

The claim fails because an express condition precedent was not satisfied, and courts enforce express conditions strictly

Answer

Express conditions must be strictly complied with, and failure to satisfy them discharges the other party's duty absent waiver, estoppel, or disproportionate forfeiture.

Question 5

A minor, age 17, buys a motorcycle on credit. At 18, she continues making payments for six months before defaulting and asserting infancy. Can she disaffirm?

Accepted Answer

No, because continuing payments after reaching majority ratified the contract

Answer

A contract made during minority is voidable, but conduct after reaching majority consistent with the contract, such as continued payments, constitutes ratification.

(MD Bar) Maryland Bar Exam Practice Test

(MD Bar) Maryland Bar Exam Practice Test

MD Bar Contracts and Sales 4