MT Bar Contracts 3

Question 1

Under Montana law, a contract for the sale of goods is governed primarily by:

Accepted Answer

Montana UCC Article 2 (MCA Title 30, Chapter 2)

Answer

The Restatement (Second) of Contracts

Answer

Common law of contracts only

Answer

Federal contract law

Question 2

In Montana, the doctrine of impossibility of performance excuses a party's contractual obligation when:

Accepted Answer

The subject matter is destroyed without fault of either party

Answer

Performance becomes more expensive than anticipated

Answer

The party simply changes their mind

Answer

A third party fails to supply necessary materials

Question 3

A contract between an adult and a minor in Montana is:

Accepted Answer

Voidable only by the minor

Answer

Void and unenforceable by either party

Answer

Voidable by either party

Answer

Enforceable as written

Question 4

Under Montana contract law, which of the following is an example of an output contract?

Accepted Answer

A seller agrees to sell all goods it produces to a single buyer

Answer

A buyer agrees to purchase all goods she requires from a single seller

Answer

A retailer orders a fixed quantity of 500 units per month

Answer

A franchisor licenses its brand to a franchisee

Question 5

In Montana, specific performance is typically awarded in breach of contract cases involving:

Accepted Answer

Sale of unique real property or rare personal property

Answer

Personal service contracts

Answer

Sale of fungible goods

Answer

Any contract where money damages are insufficient

Question 6

Under Montana law, the duty to mitigate damages in a breach of contract case requires the non-breaching party to:

Accepted Answer

Take reasonable steps to reduce foreseeable losses after the breach

Answer

Accept any substitute performance offered by the breaching party

Answer

File suit within 30 days of the breach

Answer

Notify the breaching party before seeking damages