MT Bar Contracts 2 — Questions and Answers
Question 1: In Montana, the doctrine of promissory estoppel requires all of the following EXCEPT:
- A clear and definite promise
- Reasonable and foreseeable reliance
- Written evidence of the promise (Correct answer)
- Injustice if the promise is not enforced
Correct answer: Written evidence of the promise
Montana's promissory estoppel doctrine (Restatement § 90) does not require a written promise; oral promises suffice if the other elements are met.
Question 2: Under Montana law, a material breach by one party to a contract:
- Entitles the non-breaching party to suspend performance and sue for damages (Correct answer)
- Automatically terminates the contract
- Requires the non-breaching party to give 30-day notice before suing
- Only allows for nominal damages
Correct answer: Entitles the non-breaching party to suspend performance and sue for damages
A material breach discharges the non-breaching party's duty to perform and entitles that party to recover expectation damages.
Question 3: Which of the following is the correct measure of expectation damages in a Montana breach of contract case?
- Benefit of the bargain (lost profits + consequential damages) (Correct answer)
- Out-of-pocket losses only
- Restitution of unjust enrichment
- Nominal damages plus attorney fees
Correct answer: Benefit of the bargain (lost profits + consequential damages)
Expectation damages in Montana place the non-breaching party in the position they would have been in had the contract been performed, including lost profits and foreseeable consequential damages.
Question 4: Under Montana's UCC Article 2, a merchant's firm offer is irrevocable for a period not to exceed:
- 30 days
- 60 days
- 90 days (Correct answer)
- 6 months
Correct answer: 90 days
MCA § 30-2-205 provides that a merchant's written firm offer is irrevocable for the stated time or, if no time is stated, a reasonable time, but in no event longer than 90 days.
Question 5: The parol evidence rule in Montana prevents introduction of extrinsic evidence to:
- Show fraud in the inducement
- Explain an ambiguous term
- Contradict or vary the terms of a fully integrated written agreement (Correct answer)
- Prove a condition precedent to the contract
Correct answer: Contradict or vary the terms of a fully integrated written agreement
Montana's parol evidence rule bars prior or contemporaneous extrinsic evidence offered to contradict or vary the terms of a fully integrated written agreement.
Question 6: In Montana, when a contract is ambiguous, a court will construe it:
- Against the drafter under the contra proferentem doctrine (Correct answer)
- In favor of the party seeking enforcement
- Strictly according to the literal text
- By applying the last-in-time rule
Correct answer: Against the drafter under the contra proferentem doctrine
Montana courts apply contra proferentem and construe ambiguous contract terms against the drafter who had the power to clarify the language.
MT Bar Contracts 2
In Montana, the doctrine of promissory estoppel requires all of the following EXCEPT: