Multistate Bar Exam Contracts 4

Question 1

A buyer orders 500 widgets under a UCC contract. The seller ships 500 defective widgets. Under the perfect tender rule, the buyer may:

Accepted Answer

Reject all goods, accept all goods, or accept any commercial unit and reject the rest

Answer

UCC § 2-601 (perfect tender rule) gives the buyer the right to reject all, accept all, or accept any commercial unit and reject the rest upon delivery of non-conforming goods.

Question 2

A famous singer contracts to perform at a concert. She dies before the event. The promoter sues her estate. The most likely outcome is:

Accepted Answer

The contract is discharged due to impossibility caused by death

Answer

Death of a party whose personal performance is essential discharges the contract under the doctrine of impossibility — the duty cannot survive the person.

Question 3

Alpha Corp. contracts with Beta Corp. for Beta to build a factory by year-end for $1 million. The contract expressly states Alpha's payment obligation is 'conditioned upon Beta completing construction by December 31.' Beta completes on January 5. Alpha refuses to pay. The result is:

Accepted Answer

Alpha is excused from payment because the express condition was not satisfied

Answer

An express condition must be strictly satisfied; because Beta failed to complete by December 31, the condition precedent to Alpha's payment duty was not met and Alpha's obligation does not arise.

Question 4

A real estate contract obligates Buyer to purchase 'contingent upon obtaining mortgage financing at 5% or below.' Buyer makes no effort to apply for a mortgage and then claims the condition failed. The likely result is:

Accepted Answer

Buyer cannot invoke the failed condition because he prevented its occurrence

Answer

A party cannot benefit from the failure of a condition that he caused — prevention of condition satisfaction excuses the condition and renders the party liable.

Question 5

A buyer of real estate discovers after closing that the seller failed to disclose a known, latent structural defect. The buyer's strongest theory for relief is:

Accepted Answer

Fraudulent misrepresentation by omission (concealment)

Answer

Active concealment of a known, latent material defect by the seller constitutes fraudulent misrepresentation by omission, entitling the buyer to rescission and/or damages.

Multistate Bar Exam Practice Test

Multistate Bar Exam Practice Test

Multistate Bar Exam Contracts 4