Contracts and Sales Flashcards
7 cards from real OK BAR practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Contracts and Sales flashcards as text
A buyer contracts to purchase a rare painting, but before delivery the painting is destroyed in a fire through no fault of either party. The seller's duty to deliver is most likely:
Answer: Discharged by impossibility, because the specific subject matter was destroyed
Destruction of the specific, irreplaceable subject matter of a contract without fault discharges the duty under the doctrine of impossibility.
A software company contracts to pay a developer $80,000, and the developer assigns her right to payment to a bank. The company, unaware of the assignment, pays the developer. What is the bank's position?
Answer: The company is discharged, and the bank must recover from the developer
An obligor who pays the assignor without notice of the assignment is discharged, leaving the assignee to pursue the assignor.
A wealthy woman contracts with a landscaper to beautify a park, intending the neighboring school to benefit from the view. The school sues when the landscaper breaches. The school will likely lose because it is:
Answer: An incidental beneficiary with no enforcement rights
A party who benefits only indirectly from a contract is an incidental beneficiary and cannot enforce it.
A buyer receives a delivery of 1,000 light fixtures and discovers 5% are defective after a reasonable inspection period passes without objection. Under the UCC, the buyer has most likely:
Answer: Accepted the goods and must pay, subject to a remedy for the nonconformity
Failure to reject within a reasonable time after opportunity to inspect constitutes acceptance, though the buyer retains damages remedies for nonconformity.
A contract states that the buyer's duty to pay arises 'only if the goods pass a third-party quality inspection.' The inspection never occurs through no one's fault. The buyer's payment duty is:
Answer: Discharged, because an express condition precedent was not satisfied
When an express condition precedent fails, the duty it qualifies never arises and is discharged.
A minor purchases a car, uses it for six months, and then disaffirms the contract before turning 18. In most jurisdictions, the minor may:
Answer: Disaffirm and recover payments, returning the car in its current condition
The majority rule allows a minor to disaffirm and recover consideration paid, restoring only what remains of the goods received.
A vendor mistakenly bids $10,000 on a project all other bidders priced near $100,000, and the offeree hurries to accept. The vendor's best defense to enforcement is:
Answer: Unilateral mistake that the other party knew or should have known about
A unilateral mistake is a defense when the nonmistaken party knew or had reason to know of the error, as with an obviously erroneous bid.