NM Bar Contracts & Commercial Law 2

Question 1

Under UCC Article 2, the perfect tender rule requires that:

Accepted Answer

The seller must tender goods that conform in every respect to the contract

Answer

Substantial performance satisfies the seller's obligation

Answer

Minor defects are excused if the price is reduced

Answer

The buyer must accept conforming goods within 30 days

Question 2

A contract entered into under mutual mistake of a material fact is:

Accepted Answer

Voidable at the option of the adversely affected party

Answer

Void ab initio

Answer

Enforceable because both parties were mistaken

Answer

Unenforceable only if the mistake was about value

Question 3

Which remedy allows a non-breaching party to recover the value of the benefit conferred on the breaching party?

Accepted Answer

Restitution

Answer

Expectation damages

Answer

Reliance damages

Answer

Nominal damages

Question 4

Under UCC Article 2, a buyer's right to 'cure' a defective tender is governed by:

Accepted Answer

UCC § 2-508, allowing cure if time for performance has not yet expired or if seller had reasonable grounds to believe tender was acceptable

Answer

UCC § 2-601, the perfect tender rule

Answer

UCC § 2-207, the battle of the forms

Answer

UCC § 2-314, the implied warranty of merchantability

Question 5

The parol evidence rule generally prohibits introduction of extrinsic evidence to:

Accepted Answer

Contradict or vary the terms of a fully integrated written contract

Answer

Explain an ambiguous contract term

Answer

Establish a condition precedent

Answer

Show fraud in the inducement

Question 6

Under New Mexico common law, an agreement to modify a contract generally requires:

Accepted Answer

New consideration

Answer

A writing regardless of the contract's subject matter

Answer

The agreement of all affected third-party beneficiaries

Answer

Notice to the court

Question 7

Which of the following best describes the expectation interest in contract damages?

Accepted Answer

Putting the non-breaching party in the position they would have been in had the contract been performed

Answer

Restoring the non-breaching party to pre-contract status quo

Answer

Recovering only out-of-pocket expenses incurred in reliance on the contract

Answer

Disgorgement of the breaching party's profits