OR Bar Contracts and Sales 3

Question 1

Under the common law Statute of Frauds, which contract MUST be evidenced by a signed writing?

Accepted Answer

A contract that cannot be performed within one year of formation

Answer

The Statute of Frauds requires a writing for contracts that cannot possibly be performed within one year from the date of formation.

Question 2

A car dealer falsely tells a buyer the vehicle has never been in an accident, knowing this is false. The buyer purchases and later discovers the truth. The buyer may avoid the contract based on:

Accepted Answer

Fraudulent misrepresentation inducing assent

Answer

Fraudulent misrepresentation occurs when a party knowingly makes a false statement of material fact intending to induce the other party's reliance.

Question 3

The parol evidence rule bars the introduction of prior or contemporaneous oral agreements to:

Accepted Answer

Contradict a term in a fully integrated written contract

Answer

The parol evidence rule prohibits using extrinsic evidence to contradict the terms of a fully integrated written agreement.

Question 4

A general contractor threatens to stop all work on a half-completed office building unless the owner pays $100,000 over the contract price. The owner pays under protest. This modification is:

Accepted Answer

Voidable by the owner on grounds of economic duress

Answer

Economic duress makes a modification voidable when one party wrongfully threatens to breach and the victim has no reasonable alternative.

Question 5

Both Alice and Bob believe they are contracting for 'the ship Peerless.' Unknown to either party, two ships share that name and each intends a different one. The result is:

Accepted Answer

No contract, because there is no mutual assent

Answer

Under Raffles v. Wichelhaus, latent ambiguity about a material term with no objective basis to prefer one meaning over the other destroys mutual assent.

(OR Bar) Oregon Bar Exam Practice Test

(OR Bar) Oregon Bar Exam Practice Test

OR Bar Contracts and Sales 3