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NY Contract Law Principles Flashcards

6 cards from real NYLE practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 6 NY Contract Law Principles flashcards as text

  1. Under New York law, what is the 'perfect tender rule' as applied under UCC Article 2?

    Answer: A buyer may reject goods if they fail in any respect to conform to the contract

    Under UCC § 2-601, a buyer may reject goods that fail in any respect to conform to the contract, known as the perfect tender rule.

  2. In New York, what is the effect of a liquidated damages clause in a contract?

    Answer: It is enforceable if the amount is a reasonable estimate of anticipated damages and actual damages would be difficult to determine

    New York enforces liquidated damages clauses when the amount is a reasonable forecast of probable damages and actual damages would be difficult to ascertain.

  3. Under New York law, what duty does a party have after the other party breaches the contract?

    Answer: A duty to take reasonable steps to mitigate damages

    The non-breaching party has a duty to mitigate damages by taking reasonable steps to minimize the loss caused by the breach.

  4. Under New York law, which of the following constitutes an anticipatory repudiation of a contract?

    Answer: A clear and unequivocal statement by one party before performance is due that they will not perform

    Anticipatory repudiation requires a clear, unequivocal, and unconditional refusal to perform before the time performance is due.

  5. Under GOL § 5-703, New York's statute of frauds for real property requires a writing for which of the following?

    Answer: A contract for the sale of real property or an interest therein

    GOL § 5-703 requires that a contract for the sale of real property or any interest therein be in writing and signed by the party to be charged.

  6. Under New York law, what is the implied covenant of good faith and fair dealing?

    Answer: An implied promise in every contract that neither party will do anything to destroy or injure the other party's right to receive the benefits of the contract

    New York recognizes an implied covenant of good faith and fair dealing in every contract, meaning neither party may act to destroy the other's right to receive the contract's fruits.