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

Under UCC § 2-205, a merchant's firm offer is irrevocable for the time stated or, if no time is stated, for a reasonable time, but in no event may such period of irrevocability exceed 3 months (90 days).

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

Under UCC § 2-601, the perfect tender rule requires that goods conform exactly to the contract; if they do not, the buyer may reject the whole, accept the whole, or accept any commercial unit and reject the rest.

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

At common law, a modification under seal is enforceable without consideration because the seal itself substitutes for consideration in jurisdictions that recognize it.

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

North Carolina has adopted the Revised Uniform Arbitration Act (NCRUAA), which enforces valid arbitration agreements and requires courts to compel arbitration when a valid agreement exists and a party refuses to arbitrate.

Question 5

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

Accepted Answer

When the offeree deposits the acceptance in the mail

Answer

Under the mailbox rule (also called the dispatch rule), an acceptance is effective upon proper dispatch—i.e., when the offeree mails the acceptance, not when the offeror receives it.

NC Bar - North Carolina Bar Exam Practice Test

NC Bar - North Carolina Bar Exam Practice Test

NC Bar Contracts