Contracts and Commercial Law Flashcards

Under UCC Article 2, which implied warranty guarantees that goods are fit for their ordinary purposes?

Answer: Implied warranty of merchantability

The implied warranty of merchantability, applicable when the seller is a merchant, guarantees goods are fit for ordinary purposes for which such goods are used.

Which doctrine binds a party to a promise they made, even without consideration, when another party reasonably relied on it to their detriment?

Answer: Promissory estoppel

Promissory estoppel enforces a promise when the promisor reasonably expected reliance, the promisee did rely, and injustice can only be avoided by enforcement.

In a contract dispute, which party bears the burden of proving that a contract existed?

Answer: The plaintiff seeking enforcement

The party seeking to enforce the contract (typically the plaintiff) bears the burden of proving the existence and terms of the contract by a preponderance of the evidence.

Under the parol evidence rule, which type of evidence is generally excluded when interpreting a fully integrated written contract?

Answer: Prior or contemporaneous oral agreements that vary the written terms

The parol evidence rule bars admission of prior or contemporaneous oral agreements that contradict or vary a fully integrated written contract.

Which remedy allows recovery of the value of benefits conferred on a party who would otherwise be unjustly enriched, even without a valid contract?

Answer: Quasi-contract/restitution

Quasi-contract or restitution allows recovery of the value of benefits unjustly retained by one party at the expense of another, even absent a valid contract.

Under Missouri's UCC, a buyer's rejection of nonconforming goods must occur within what time frame?

Answer: A reasonable time after delivery

Under UCC § 2-602, rejection of nonconforming goods must occur within a reasonable time after delivery, and the buyer must seasonably notify the seller.