NJ Bar Contracts and Commercial Law 2 — Questions and Answers
Question 1: Under the mirror image rule applicable to common law contracts, an acceptance that changes any term of the offer is treated as what?
- A valid acceptance with the modification
- A counteroffer and rejection (Correct answer)
- A conditional acceptance
- A binding contract on original terms
Correct answer: A counteroffer and rejection
Common law's mirror image rule deems any variance in the acceptance a counteroffer that rejects the original offer.
Question 2: Under UCC 2-207, the battle of the forms rule provides that additional terms in an acceptance between merchants become part of the contract unless what occurs?
- The offer expressly limits acceptance to its terms, the terms materially alter the contract, or the offeror objects (Correct answer)
- Both parties are consumers
- The goods are specialty items
- The contract exceeds $10,000
Correct answer: The offer expressly limits acceptance to its terms, the terms materially alter the contract, or the offeror objects
UCC 2-207 allows contracts to form despite differing forms, but additional terms are excluded if the offer limits acceptance, terms materially alter it, or the offeror objects.
Question 3: The measure of expectation damages in a breach of contract case is designed to put the non-breaching party in which position?
- The position it was in before contracting
- The position it would have been in had the contract been performed (Correct answer)
- A better position than before
- The position of unjust enrichment avoidance
Correct answer: The position it would have been in had the contract been performed
Expectation damages give the non-breaching party the benefit of its bargain by placing it where full performance would have left it.
Question 4: Restitution damages in contract law are awarded to prevent what?
- Future breaches
- Consequential losses
- Unjust enrichment of the breaching party (Correct answer)
- Emotional distress
Correct answer: Unjust enrichment of the breaching party
Restitution aims to disgorge any benefit conferred on the breaching party to prevent its unjust enrichment.
Question 5: Under the doctrine of impossibility, a contract is discharged when performance becomes impossible due to which type of event?
- Economic downturns
- Unforeseen supervening events that make performance objectively impossible (Correct answer)
- A party's change of mind
- Rising costs
Correct answer: Unforeseen supervening events that make performance objectively impossible
Impossibility excuses performance when an unforeseen supervening event renders the agreed-upon performance objectively impossible.
Question 6: A third-party beneficiary who has an enforceable right under a contract is classified as which type of beneficiary?
- Incidental beneficiary
- Intended beneficiary (Correct answer)
- Contingent beneficiary
- Donee creditor
Correct answer: Intended beneficiary
Only intended beneficiaries — those whom the contracting parties specifically meant to benefit — can enforce the contract.
NJ Bar Contracts and Commercial Law 2
Under the mirror image rule applicable to common law contracts, an acceptance that changes any term of the offer is treated as what?