Multistate Bar Exam Contracts 5

Question 1

Seller and Buyer have a written agreement for sale of 200 tables. Buyer claims seller orally agreed to also paint the tables. Under the parol evidence rule, this oral promise is:

Accepted Answer

Inadmissible if the written contract is fully integrated

Answer

The parol evidence rule bars extrinsic evidence of prior or contemporaneous agreements that would add to or contradict a fully integrated written contract.

Question 2

A subcontractor's bid is accidentally $50,000 lower than intended due to a clerical error. The general contractor relies on the bid and is awarded the project. The subcontractor discovers the error and refuses to perform. A court will most likely:

Accepted Answer

Allow rescission because of the unilateral mistake if contractor knew or should have known of the error

Answer

A unilateral mistake may allow rescission when the non-mistaken party knew or should have known of the error — a $50,000 discrepancy from competitors' bids would put the contractor on notice.

Question 3

A contract for the sale of 1,000 custom uniforms is silent on the delivery schedule. Under the UCC, delivery is due:

Accepted Answer

Within a commercially reasonable time after formation

Answer

UCC § 2-309 provides that if no time for delivery is stated, delivery must occur within a commercially reasonable time after contract formation.

Question 4

Parties form an oral contract for the sale of a $600 antique vase. The seller sends the buyer a written confirmation naming the price and quantity; the buyer, also a merchant, receives it but says nothing for 2 weeks. Under the UCC merchant exception to the Statute of Frauds:

Accepted Answer

The written confirmation satisfies the Statute of Frauds against the buyer who failed to object within 10 days

Answer

Under UCC § 2-201(2), a written merchant confirmation sent to another merchant satisfies the Statute of Frauds against the recipient unless the recipient objects within 10 days of receipt.

Question 5

A party seeks consequential damages for lost profits after a breach. Under Hadley v. Baxendale, these damages are recoverable only if:

Accepted Answer

The lost profits were foreseeable at the time of contracting

Answer

Under the rule of Hadley v. Baxendale, consequential damages are recoverable only if they were within the reasonable contemplation of the parties as a probable result of breach at the time of contracting.

Multistate Bar Exam Practice Test

Multistate Bar Exam Practice Test

Multistate Bar Exam Contracts 5