Contracts and Commercial Law Flashcards
7 cards from real ND BAR practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Contracts and Commercial Law flashcards as text
Which doctrine allows a court to enforce a promise made without consideration when the promisor should reasonably have expected detrimental reliance?
Answer: Promissory estoppel
Promissory estoppel substitutes for consideration when a party detrimentally and reasonably relies on a promise, making it unjust not to enforce it.
A contract is voidable (not void) when:
Answer: One party lacked contractual capacity due to age
A contract made by a minor is voidable at the minor's option, not automatically void, because it protects the minor who can ratify or disaffirm upon reaching majority.
Under contract law, 'impossibility of performance' excuses a party's obligation when:
Answer: The subject matter of the contract has been destroyed without the promisor's fault
True impossibility requires that the specific subject matter necessary for performance no longer exists, through no fault of the breaching party.
In a contract for the sale of a house, the seller's duty to perform is conditioned on the buyer obtaining financing. If the buyer cannot obtain financing, this is an example of:
Answer: A condition precedent that has failed
A condition precedent must occur before a party's duty to perform arises; if financing is not obtained, the seller's duty to convey title never becomes absolute.
Which measure of damages places the non-breaching party in the position they would have been in had the contract been fully performed?
Answer: Expectation damages
Expectation damages (also called benefit-of-the-bargain damages) are designed to give the non-breaching party the economic benefit they expected from full performance.
Under UCC Article 2, if a seller delivers non-conforming goods, the buyer's rights include all of the following EXCEPT:
Answer: Demand full rescission regardless of the severity of the non-conformity
While the buyer has broad rejection rights under the perfect tender rule, the UCC does not allow a buyer to automatically rescind the entire contract without first giving the seller a right to cure in certain circumstances.
A modification to an existing common law contract requires:
Answer: New consideration
Under common law, a modification to an existing contract requires new consideration because the pre-existing duty rule prevents using performance of an existing obligation as consideration.