NE Bar Contracts

Question 1

Under the common law, which of the following is required for a valid contract to be formed?

Accepted Answer

Offer, acceptance, and consideration

Answer

Common law requires offer, acceptance, and consideration as the three essential elements of a binding contract.

Question 2

A merchant offers to sell goods and promises to keep the offer open for 30 days without requiring consideration. Under the UCC, this offer is:

Accepted Answer

Irrevocable for up to 90 days under the firm offer rule

Answer

UCC § 2-205 provides that a signed written offer by a merchant to buy or sell goods, with assurance it will be held open, is irrevocable for up to 90 days without consideration.

Question 3

An offeree mails an acceptance on Monday. The offeror mails a revocation on Tuesday, which arrives Wednesday. The acceptance arrives Thursday. Is there a contract?

Accepted Answer

Yes, because the acceptance was effective when mailed on Monday

Answer

Under the mailbox rule, an acceptance is effective upon dispatch (mailing), so the contract was formed Monday before the revocation was even sent.

Question 4

Paula promises to pay Dan $500 in exchange for Dan's promise to paint her fence. Dan never paints the fence. What type of contract was this?

Accepted Answer

Bilateral contract

Answer

A bilateral contract involves an exchange of mutual promises, which is what occurred here—Paula promised money in exchange for Dan's promise to paint.

Question 5

Which of the following best describes promissory estoppel?

Accepted Answer

A substitute for consideration when a party reasonably relies to their detriment on a promise

Answer

Promissory estoppel allows enforcement of a promise without consideration when the promisee reasonably relied on it to their detriment and injustice can only be avoided by enforcement.

(NE Bar) Nebraska Bar Exam Practice Test

(NE Bar) Nebraska Bar Exam Practice Test

NE Bar Contracts