NYLE Contract Law Principles 2

Question 1

Under the UCC, a merchant's firm offer is irrevocable for up to how long without consideration?

Accepted Answer

3 months

Answer

UCC §2-205 makes a merchant's signed, written firm offer irrevocable for the stated period, not to exceed 3 months.

Question 2

Alice offers to sell her car for $10,000. Bob replies, 'I'll take it, but only if you include new tires.' Under common law, Bob has:

Accepted Answer

Made a counteroffer, rejecting Alice's offer

Answer

Under the common law mirror-image rule, adding new terms constitutes a counteroffer that terminates the original offer.

Question 3

Which doctrine allows a court to refuse enforcement of a contract term that is unreasonably favorable to one party and oppressive to the other?

Accepted Answer

Unconscionability

Answer

Unconscionability (UCC §2-302; Restatement §208) permits courts to refuse enforcement of oppressively one-sided contract terms.

Question 4

A modification to an existing contract for the sale of goods worth $600 requires:

Accepted Answer

Only a signed writing under the Statute of Frauds

Answer

Under UCC §2-209 and the Statute of Frauds, modifications bringing the contract within §2-201 (goods ≥$500) must be in writing.

Question 5

Under New York law, which of the following agreements must be in writing to be enforceable under the Statute of Frauds?

Accepted Answer

A contract that cannot be performed within one year of its making

Answer

New York's Statute of Frauds (GOL §5-701) requires a writing for contracts that cannot by their terms be performed within one year.

NYLE - New York Law Exam Practice Test