NE Bar Contracts 2

Question 1

Sam agrees to mow Linda's lawn for $100, but Linda later refuses to pay. Sam's most straightforward remedy is:

Accepted Answer

Expectation damages equal to the contract price of $100

Answer

Specific performance compelling Linda to pay

Answer

Restitution measured by the market value of Sam's services

Answer

Rescission and restitution of Sam's time

Question 2

An anticipatory repudiation occurs when:

Accepted Answer

A party unequivocally indicates before the due date that it will not perform

Answer

A party breaches after the other party has fully performed

Answer

A party demands a modification without legal justification

Answer

A party fails to deliver goods within the agreed time period

Question 3

The parol evidence rule generally prohibits introduction of:

Accepted Answer

Prior or contemporaneous oral agreements that contradict a fully integrated written contract

Answer

Evidence of trade usage to explain contract terms

Answer

Evidence of fraud in the inducement of a contract

Answer

Subsequent oral modifications to a written contract

Question 4

Under which doctrine may a court refuse to enforce a contract whose terms are unreasonably favorable to one party and the other party had no meaningful choice?

Accepted Answer

Unconscionability

Answer

Frustration of purpose

Answer

Undue influence

Answer

Misrepresentation

Question 5

Alice contracts to buy Bob's house. Before closing, a tornado destroys the house. Assuming risk of loss had not yet passed, which doctrine would most likely excuse Alice's obligation to perform?

Accepted Answer

Impossibility of performance

Answer

Frustration of purpose

Answer

Anticipatory repudiation

Answer

Mutual mistake

Question 6

A third-party beneficiary's rights vest when:

Accepted Answer

The beneficiary learns of and assents to the contract, changes position in reliance, or brings suit

Answer

The contract is first formed between the promisor and promisee

Answer

The beneficiary is named in the written contract

Answer

The promisor begins performance of the contract

Question 7

Maria agrees to buy Carlos's car for $5,000 but later discovers it has a hidden engine defect Carlos knew about but did not disclose. Maria can most likely avoid the contract on the basis of:

Accepted Answer

Fraudulent misrepresentation

Answer

Mutual mistake

Answer

Unilateral mistake by Maria

Answer

Lack of consideration