Multistate Bar Exam Contracts 3

Question 1

A party enters a contract under duress caused by the other party's improper threat. The contract is:

Accepted Answer

Voidable at the option of the party under duress

Answer

A contract induced by duress is voidable — not void — at the election of the party who was coerced, because the agreement lacked genuine assent.

Question 2

Seller contracts to sell 1,000 barrels of oil to Buyer for $50/barrel. Before delivery, a government embargo makes performance illegal. Under the doctrine of impossibility/impracticability, the likely result is:

Accepted Answer

The contract is discharged and neither party is liable

Answer

Supervening illegality (a government embargo) renders performance objectively impossible, discharging both parties' obligations under the doctrine of impossibility.

Question 3

An offer states: 'I'll sell you my car for $5,000. Accept by Friday noon.' On Thursday, the offeree sends a letter saying 'I accept, but please include a full tank of gas.' This response is:

Accepted Answer

A counter-offer that terminates the original offer

Answer

Under the common law mirror-image rule, an acceptance that adds new terms is a counter-offer, which rejects and terminates the original offer.

Question 4

A contractor agrees to build a bridge for a county. Halfway through construction, the county assigns its right to receive the completed bridge to a neighboring township. The contractor objects. The assignment is:

Accepted Answer

Valid because contract rights are freely assignable

Answer

The right to receive performance (the completed bridge) can be freely assigned to a third party; assignment of rights to receive a fixed performance generally does not materially burden the obligor.

Question 5

A homeowner hires a painter for $2,000 to paint her house. The painter delegates the job to his assistant without the homeowner's consent. The homeowner objects to the assistant. This delegation is:

Accepted Answer

Impermissible because painting involves personal skill and trust

Answer

Duties requiring personal skill, taste, or judgment — such as painting a home where the customer relied on the specific contractor — cannot be delegated without the obligee's consent.

Multistate Bar Exam Practice Test

Multistate Bar Exam Practice Test

Multistate Bar Exam Contracts 3