Contracts and Commercial Law Flashcards

Under NJ's Uniform Commercial Code, the implied warranty of merchantability arises automatically in a sale by whom?

Answer: A merchant who deals in goods of that kind

UCC 2-314 imposes an implied warranty of merchantability only when the seller is a merchant who deals in goods of the kind sold.

A contract modification under common law requires what, whereas a UCC contract modification requires only good faith?

Answer: New consideration

Common law requires new consideration to support a contract modification, while the UCC dispenses with this requirement for good-faith modifications.

An assignment of contract rights generally does not require which element?

Answer: Obligor's consent (unless contract prohibits or assignment materially changes duty)

Most contract rights can be assigned without the obligor's consent unless prohibited by the contract, law, or a material change in duty results.

The statute of limitations for a written contract claim in New Jersey is generally how many years?

Answer: 6 years

New Jersey's statute of limitations for a written contract action is six years under N.J.S.A. 2A:14-1.

Under the doctrine of frustration of purpose, a contract is discharged when a supervening event does what to the contract's main purpose?

Answer: Substantially destroys the purpose known to both parties

Frustration of purpose discharges a party when an unforeseen event substantially destroys the primary purpose of the contract known to both parties.

Which remedy requires a party to perform its contractual obligations and is available when monetary damages are inadequate?

Answer: Specific performance

Specific performance compels actual contract performance and is granted in equity when money damages cannot adequately compensate the plaintiff.