NM Bar Contracts & Commercial Law 1 — Questions and Answers
Question 1: Under the UCC, a merchant's firm offer is irrevocable for how long if no time is stated?
- 30 days
- 60 days
- 90 days
- 3 months (Correct answer)
Correct answer: 3 months
UCC § 2-205 provides that a merchant's firm offer, if no time is stated, is irrevocable for a reasonable time not to exceed 3 months.
Question 2: Under the common law mailbox rule, an acceptance is effective when:
- The offeror receives it
- The offeree sends it (Correct answer)
- The offeree decides to accept
- The offeror reads it
Correct answer: The offeree sends it
Under the mailbox rule, acceptance is effective upon dispatch (when sent), not when received by the offeror.
Question 3: Which of the following is NOT a required element for a valid contract?
- Offer
- Acceptance
- Consideration
- Written form (Correct answer)
Correct answer: Written form
Contracts generally require offer, acceptance, and consideration; written form is only required for certain contracts under the Statute of Frauds.
Question 4: Under the UCC's 'battle of the forms' rule (§ 2-207), additional terms in an acceptance between merchants become part of the contract unless:
- The offer expressly limits acceptance to its terms
- The additional terms are material
- The offeror objects within a reasonable time
- Any of the above applies (Correct answer)
Correct answer: Any of the above applies
Under UCC § 2-207, additional terms between merchants do not become part of the contract if the offer limits acceptance to its terms, if they materially alter the contract, or if the offeror timely objects.
Question 5: Under New Mexico law, which contract must be in writing under the Statute of Frauds?
- A contract for the sale of goods valued at $250
- A promise to pay another's debt (Correct answer)
- A service contract performable in 6 months
- A lease for 5 months
Correct answer: A promise to pay another's debt
A promise to answer for the debt of another (suretyship) is a classic Statute of Frauds category requiring a written agreement.
Question 6: In New Mexico, the doctrine of promissory estoppel requires all of the following EXCEPT:
- A clear and definite promise
- Reasonable and foreseeable reliance
- Detriment to the promisee
- Bargained-for consideration (Correct answer)
Correct answer: Bargained-for consideration
Promissory estoppel substitutes for consideration; it does not require bargained-for consideration — that is the element it replaces.
Question 7: An anticipatory repudiation occurs when a party:
- Breaches at the time of performance
- Unequivocally refuses to perform before performance is due (Correct answer)
- Requests a modification before performance is due
- Fails to provide adequate assurance within 60 days
Correct answer: Unequivocally refuses to perform before performance is due
Anticipatory repudiation requires an unequivocal statement or voluntary act before the performance date showing the party will not perform.
NM Bar Contracts & Commercial Law 1
Under the UCC, a merchant's firm offer is irrevocable for how long if no time is stated?