Multistate Bar Exam Contracts 2

Question 1

A merchant sends a signed written offer to sell 500 widgets at $10 each, stating the offer is 'firm for 30 days.' Under the UCC, this offer:

Accepted Answer

Is irrevocable for 30 days even without consideration

Answer

May be revoked at any time before acceptance

Answer

Is irrevocable only if the offeree gave consideration

Answer

Expires after 3 months regardless of its stated term

Question 2

A seller contracts to deliver 100 chairs by May 1. On April 15, the seller tells the buyer, 'I won't be delivering those chairs.' The buyer's best immediate legal remedy is:

Accepted Answer

Immediately treat the contract as breached and seek damages

Answer

Wait until May 1 and then sue for breach

Answer

Only seek specific performance since the goods are unique

Answer

Accept the repudiation and negotiate a new contract

Question 3

A contract for the sale of land contains a clause: 'Time is of the essence.' Buyer tenders payment one day late. Seller refuses to convey. The likely result is:

Accepted Answer

Seller may rescind because buyer materially breached

Answer

Seller must perform because one day is immaterial

Answer

Buyer is entitled to reasonable delay without consequence

Answer

Seller must give written notice before refusing to perform

Question 4

An employer promises a long-time employee a pension upon retirement. The employee retires in reliance on that promise. The employer then refuses to pay. The best theory for enforcing the promise is:

Accepted Answer

Promissory estoppel based on detrimental reliance

Answer

Bilateral contract based on past service

Answer

Quasi-contract for unjust enrichment

Answer

Unilateral contract accepted by continued employment

Question 5

Under the Statute of Frauds, which contract does NOT require a writing?

Accepted Answer

A contract for services performable within one year

Answer

A 2-year employment contract

Answer

A contract to sell land for $100

Answer

A promise to pay another's debt as surety

Question 6

Buyer and Seller agree on a contract for 200 units, but the written contract mistakenly states 100 units due to a mutual scrivener's error. The appropriate remedy is:

Accepted Answer

Reformation to reflect the true agreement of 200 units

Answer

Rescission of the entire contract

Answer

Enforcement of the written term for 100 units only

Answer

Specific performance for 200 units as the oral agreement stated

Question 7

A contractor substantially performs a home renovation but omits a small requested feature. Under the doctrine of substantial performance, the owner:

Accepted Answer

Owes the contract price minus the cost to remedy the deficiency

Answer

Owes nothing because the contractor breached the contract

Answer

Owes the full contract price without any offset

Answer

May rescind the contract and recover all payments made