NJ Bar Contracts and Commercial Law 1

Question 1

Under the common law, a valid contract requires offer, acceptance, and which third essential element?

Accepted Answer

Consideration

Answer

Common law requires offer, acceptance, and consideration — a bargained-for exchange — to form a binding contract.

Question 2

Under UCC Article 2, which of the following is required for a contract for the sale of goods over $500 to be enforceable?

Accepted Answer

Writing signed by the party to be charged

Answer

UCC 2-201 requires a writing sufficient to indicate a contract and signed by the party against whom enforcement is sought for sales over $500.

Question 3

The parol evidence rule generally bars introduction of prior or contemporaneous oral agreements that would contradict which type of document?

Accepted Answer

A fully integrated written contract

Answer

The parol evidence rule prevents extrinsic evidence from contradicting a final, fully integrated written contract.

Question 4

Anticipatory repudiation occurs when a party clearly and unequivocally indicates before performance is due that it will do what?

Accepted Answer

Not perform its contractual obligations

Answer

Anticipatory repudiation is a party's unequivocal pre-performance announcement that it will not perform, entitling the other side to sue immediately.

Question 5

The doctrine of promissory estoppel allows enforcement of a promise even without consideration when the promisee has done what?

Accepted Answer

Detrimentally relied on the promise

Answer

Promissory estoppel enforces a promise when a party reasonably and detrimentally relied on it and injustice can only be avoided by enforcement.

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