ND Bar Contracts and Commercial Law 2

Question 1

Which doctrine allows a court to enforce a promise made without consideration when the promisor should reasonably have expected detrimental reliance?

Accepted Answer

Promissory estoppel

Answer

Promissory estoppel substitutes for consideration when a party detrimentally and reasonably relies on a promise, making it unjust not to enforce it.

Question 2

A contract is voidable (not void) when:

Accepted Answer

One party lacked contractual capacity due to age

Answer

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.

Question 3

Under contract law, 'impossibility of performance' excuses a party's obligation when:

Accepted Answer

The subject matter of the contract has been destroyed without the promisor's fault

Answer

True impossibility requires that the specific subject matter necessary for performance no longer exists, through no fault of the breaching party.

Question 4

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:

Accepted Answer

A condition precedent that has failed

Answer

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.

Question 5

Which measure of damages places the non-breaching party in the position they would have been in had the contract been fully performed?

Accepted Answer

Expectation damages

Answer

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.

(ND Bar) North Dakota Bar Exam Practice Test

(ND Bar) North Dakota Bar Exam Practice Test

ND Bar Contracts and Commercial Law 2