Contracts and Sales Flashcards
7 cards from real OR 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 contract obligates a buyer to pay 'upon delivery of the goods.' Delivery is best classified as:
Answer: A condition precedent that must occur before the duty to pay arises
A condition precedent is an event that must occur before a party's contractual duty to perform becomes due.
Under the UCC perfect tender rule (§2-601), a buyer may reject a shipment of goods if:
Answer: The goods fail to conform to the contract in any respect
The perfect tender rule allows rejection if goods or delivery fail to conform to the contract in any way, even a minor defect.
A homeowner hires a contractor to install Brand X pipes. The contractor installs Brand Y pipes of equal quality. The homeowner refuses to pay. Which result best applies the doctrine of substantial performance?
Answer: The homeowner owes the contract price minus the cost to replace the pipes with Brand X
Substantial performance entitles the contractor to the contract price minus the cost to cure the minor deviation, provided the breach was not willful.
On May 1, Sarah contracts to buy Paul's house, closing on June 15. On May 20, Paul clearly and unequivocally states he will not sell. Sarah may:
Answer: Treat Paul's statement as anticipatory repudiation and sue immediately
An unequivocal pre-performance repudiation gives the non-breaching party the right to treat the contract as breached and sue immediately.
A restaurant contracts to host an event in its banquet hall. The hall burns down due to lightning before the event. The restaurant's duty to perform is discharged by:
Answer: Impossibility of performance
Impossibility discharges contractual duties when a supervening event makes performance objectively impossible, such as destruction of the subject matter.
Frustration of purpose differs from impossibility of performance in that frustration:
Answer: Allows the promisor to still perform but the principal purpose for the contract has been destroyed
In frustration of purpose, performance remains physically possible but a supervening event completely destroys the reason both parties had for the contract.
A buyer accepts a delivery of nonconforming goods without inspecting them and later discovers the defect. Under the UCC, the buyer:
Answer: May sue for breach of warranty if they notify the seller within a reasonable time after discovery
Under UCC §2-607, a buyer who accepts nonconforming goods retains warranty remedies but must notify the seller of the breach within a reasonable time after discovery.
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