Contracts and Sales Flashcards

A merchant emails a signed offer to sell 500 widgets at $10 each, stating the offer will remain open for 30 days. Ten days later, before the buyer accepts, the merchant revokes. Under the UCC, is the revocation effective?

Answer: No, because a signed merchant firm offer is irrevocable for the stated period up to three months

UCC 2-205 makes a signed written offer by a merchant giving assurance it will be held open irrevocable without consideration for the stated time, up to three months.

A homeowner promises to pay a painter $5,000 after the painter has already finished painting the house as a volunteer. Is the homeowner's promise enforceable under traditional contract principles?

Answer: No, because past consideration is not valid consideration

A promise made in exchange for a benefit already conferred is supported only by past consideration, which is generally insufficient to form a contract.

A buyer and seller sign a fully integrated written contract for the sale of land. The buyer seeks to introduce evidence of a prior oral agreement that contradicts the price term. Under the parol evidence rule, the evidence is:

Answer: Inadmissible, because prior agreements contradicting a fully integrated writing are barred

The parol evidence rule bars prior or contemporaneous agreements that contradict the terms of a fully integrated written contract.

A contractor agrees to build a barn for $50,000. Midway through, the contractor demands an extra $10,000 to finish, citing no new circumstances, and the owner agrees. At common law, is the modification enforceable?

Answer: No, because the contractor had a pre-existing duty to complete the work

Under the common law pre-existing duty rule, a promise to pay more for a duty already owed lacks consideration and is unenforceable.

A buyer orders 100 chairs and the seller ships 100 chairs of a different model without any explanation. Under the UCC, the seller's shipment of nonconforming goods constitutes:

Answer: Both an acceptance of the offer and a breach of the contract

Under UCC 2-206, shipping nonconforming goods without noting an accommodation is simultaneously an acceptance and a breach.

An uncle promises his nephew $10,000 if the nephew refrains from smoking until age 25. The nephew complies. Which doctrine best supports enforcement?

Answer: Bargained-for consideration, because forbearance of a legal right is consideration

Forbearance from a legal right, such as smoking, is valid bargained-for consideration under the classic Hamer v. Sidway rule.

A seller repudiates a contract to deliver custom machinery six months before performance is due. What may the buyer do immediately?

Answer: Treat the repudiation as a breach and sue immediately, or await performance

Anticipatory repudiation allows the nonbreaching party to sue immediately, suspend performance, or await the performance date.