OR Bar Contracts and Sales 2 — Questions and Answers
Question 1: Which type of contract is governed by UCC Article 2 rather than common law?
- A contract to paint a house
- A contract to sell 500 office chairs (Correct answer)
- A contract for legal services
- A lease of commercial real property
Correct answer: A contract to sell 500 office chairs
UCC Article 2 governs contracts for the sale of goods, such as office chairs, not service or real property contracts.
Question 2: Tom offers to sell his car for $8,000. Sarah responds, 'I accept, but only if you include new tires.' This response is best characterized as:
- A valid acceptance with a condition
- A counteroffer that rejects Tom's original offer (Correct answer)
- An inquiry that keeps the offer open
- A binding contract at $8,000 with an implied warranty
Correct answer: A counteroffer that rejects Tom's original offer
Under the common law mirror image rule, any variance from the offer's terms operates as a rejection and counteroffer.
Question 3: A nephew promises to refrain from drinking alcohol for one year in exchange for his uncle's promise to pay $5,000. The nephew fully performs and the uncle refuses to pay. Is the uncle's promise enforceable?
- No, because the nephew only gave up a personal vice
- Yes, because forbearing from a legal right is valid consideration (Correct answer)
- No, because moral obligations cannot constitute consideration
- Yes, but only if the promise was in writing
Correct answer: Yes, because forbearing from a legal right is valid consideration
Forbearance from any legal right, including consumption of alcohol, constitutes valid consideration for a promise.
Question 4: Under the mailbox rule, an acceptance sent by mail is effective:
- When the offeror receives and reads it
- Upon proper dispatch by the offeree (Correct answer)
- When the offeror acknowledges receipt
- Only if mail was specified as an accepted medium
Correct answer: Upon proper dispatch by the offeree
The mailbox rule makes acceptance effective upon dispatch, forming a contract even before the offeror receives the acceptance.
Question 5: Under UCC §2-207, when both parties are merchants and the offeree's acceptance adds a term not in the offer, that term:
- Automatically voids the contract
- Becomes part of the contract unless it materially alters the agreement or is objected to (Correct answer)
- Must be separately signed to be enforceable
- Has no effect and the original offer controls
Correct answer: Becomes part of the contract unless it materially alters the agreement or is objected to
Between merchants, additional terms in an acceptance become part of the contract unless they materially alter it, the offer limits acceptance to its terms, or the offeror objects.
Question 6: Which of the following is an example of past consideration and therefore NOT valid consideration?
- Alice promises $500 if Bob delivers goods next Friday
- Bob promises $200 if Alice forgives an existing debt today
- Tom promises to pay his assistant for work she completed six months ago (Correct answer)
- Lisa promises a discount in exchange for early payment
Correct answer: Tom promises to pay his assistant for work she completed six months ago
Past consideration is invalid because the prior act was not induced by the subsequent promise, so there is no bargained-for exchange.
Question 7: A merchant signs a written offer stating it will remain open for 60 days. Under UCC §2-205 (the firm offer rule), this offer is irrevocable for:
- 30 days, the UCC's standard period
- 60 days as stated, since it is within the three-month statutory maximum (Correct answer)
- Three months regardless of the stated period
- No time, because firm offers require consideration under the UCC
Correct answer: 60 days as stated, since it is within the three-month statutory maximum
UCC firm offers are irrevocable for the period stated, up to a maximum of three months; 60 days falls within that maximum.
OR Bar Contracts and Sales 2
Which type of contract is governed by UCC Article 2 rather than common law?