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

Under UCC § 2-205, a merchant's signed, written firm offer is irrevocable for the stated period (up to 3 months) without any consideration from the offeree.

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

An anticipatory repudiation allows the non-breaching party to immediately treat the contract as breached and sue for damages without waiting for the performance date.

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

A 'time is of the essence' clause makes timely performance a material condition, so even a one-day delay constitutes a material breach entitling the seller to rescind.

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

Promissory estoppel applies when a party detrimentally relies on a promise and injustice can only be avoided by enforcement, even without bargained-for consideration.

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

Contracts fully performable within one year of formation do not fall within the Statute of Frauds one-year provision and therefore do not require a written memorandum.

Multistate Bar Exam Practice Test

Multistate Bar Exam Practice Test

Multistate Bar Exam Contracts 2