NM Bar Contracts & Commercial Law 3

Question 1

Which UCC warranty is automatically implied in every sale of goods by a merchant who deals in goods of that kind?

Accepted Answer

Warranty of merchantability

Answer

UCC § 2-314 implies a warranty of merchantability in every sale by a merchant dealing in goods of the kind sold, warranting they are fit for ordinary purposes.

Question 2

Under New Mexico law, which of the following constitutes adequate consideration?

Accepted Answer

A peppercorn promised in exchange for a deed to real property

Answer

Courts generally enforce the peppercorn theory: any legally recognized detriment, however nominal, constitutes sufficient consideration.

Question 3

Under the doctrine of commercial impracticability (UCC § 2-615), a seller is excused from performance when:

Accepted Answer

An unforeseen contingency occurs whose non-occurrence was a basic assumption of the contract

Answer

UCC § 2-615 excuses a seller when performance becomes impracticable due to an unforeseen contingency whose non-occurrence was a basic assumption on which the contract was made.

Question 4

A third-party beneficiary who is an intended beneficiary may enforce a contract:

Accepted Answer

Once the beneficiary's rights have vested

Answer

An intended third-party beneficiary's rights vest when they materially change position in reliance on the promise, manifest assent to it, or bring suit to enforce it.

Question 5

Under common law, substantial performance by a contractor entitles the contractor to:

Accepted Answer

The contract price minus damages for the deviation from complete performance

Answer

Under substantial performance, the contractor recovers the contract price reduced by the cost to remedy the deficiency or the diminution in value.

(NM Bar) New Mexico Bar Exam Practice Test

(NM Bar) New Mexico Bar Exam Practice Test

NM Bar Contracts & Commercial Law 3