NYLE NY Contract Law Principles 2

Question 1

Under New York law, what is required for a valid contract modification?

Accepted Answer

A signed writing if the original contract was required to be in writing under the statute of frauds

Answer

New consideration is always required for any modification

Answer

Approval by a court or arbitrator

Answer

Oral agreement is sufficient regardless of the original contract's form

Question 2

Under New York's Statute of Frauds (GOL § 5-701), which of the following contracts MUST be in writing to be enforceable?

Accepted Answer

A contract that by its terms cannot be performed within one year from its making

Answer

Any contract with a value over $500

Answer

All contracts involving personal services

Answer

A contract between two businesses regardless of value

Question 3

Under New York law, which remedy is generally NOT available for breach of contract?

Accepted Answer

Punitive damages

Answer

Expectation damages

Answer

Consequential damages that were foreseeable

Answer

Specific performance for unique goods or real property

Question 4

Under New York law, what is the parol evidence rule?

Accepted Answer

Extrinsic evidence may not be used to contradict or vary the terms of a fully integrated written agreement

Answer

All contracts must be supported by oral testimony at trial

Answer

Prior negotiations are always admissible to interpret a contract

Answer

A party may introduce parole board records to impeach a witness

Question 5

Under GOL § 5-1103, New York eliminated the requirement of consideration for which type of agreement?

Accepted Answer

Written modifications and discharges of existing contracts

Answer

All contracts, whether written or oral

Answer

Only employment contracts

Answer

Only contracts involving government entities

Question 6

Under New York law, what is the standard for determining whether a contract term is unconscionable?

Accepted Answer

Both procedural unconscionability (unfair bargaining process) and substantive unconscionability (unreasonably one-sided terms) must be present

Answer

Any term the court considers unfair may be struck as unconscionable

Answer

Only the price term can be reviewed for unconscionability

Answer

Unconscionability applies only to consumer contracts, not commercial ones