NC Bar Contracts

Question 1

Under the UCC, a merchant's firm offer is irrevocable for the stated period even without consideration if it is in writing.
What is the maximum period of irrevocability for a merchant's firm offer under the UCC?

Accepted Answer

90 days

Answer

30 days

Answer

60 days

Answer

6 months

Question 2

A buyer and seller enter a contract for the sale of 500 widgets. The seller ships 490 widgets and claims substantial performance. Under the UCC's perfect tender rule, which of the following is correct?

Accepted Answer

The buyer may reject the entire shipment because the tender is non-conforming.

Answer

The buyer must accept because substantial performance applies to goods contracts.

Answer

The buyer must accept 490 widgets and may only sue for the price difference.

Answer

The buyer may reject only the missing 10 widgets.

Question 3

Under common law contract principles, which of the following modifications would be enforceable without new consideration?

Accepted Answer

A modification under seal by both parties

Answer

An oral modification to a written contract for the sale of real property

Answer

A written modification that both parties agree to in good faith to accommodate unanticipated circumstances

Answer

A unilateral promise to perform an existing contractual obligation

Question 4

A contract contains the following clause: 'All disputes shall be resolved by arbitration in Charlotte, NC.' A party sues in court instead. Under North Carolina law, how should the court treat this clause?

Accepted Answer

Enforceable, and the court should compel arbitration under the NC Revised Uniform Arbitration Act.

Answer

Void as against public policy since courts cannot be divested of jurisdiction.

Answer

Unenforceable because arbitration clauses require separate consideration.

Answer

Void unless the clause was negotiated by attorneys for both sides.

Question 5

Under the mailbox rule, when does an acceptance become effective?

Accepted Answer

When the offeree deposits the acceptance in the mail

Answer

When the offeror receives the acceptance

Answer

When the offeree intends to accept

Answer

When a reasonable person would have received the acceptance

Question 6

Seller contracts to deliver 1,000 pounds of tobacco to Buyer on June 1. On May 15, Seller clearly communicates that she will not perform. Which doctrine allows Buyer to sue immediately without waiting until June 1?

Accepted Answer

Anticipatory repudiation

Answer

Promissory estoppel

Answer

Frustration of purpose

Answer

Impossibility of performance

Question 7

Under the Statute of Frauds in North Carolina, which of the following contracts must be in writing to be enforceable?

Accepted Answer

A contract for the sale of real property

Answer

A contract for services to be performed within one year

Answer

A contract for the sale of goods worth $300

Answer

A contract for a lease of personal property for 6 months