IL Bar Contracts

Question 1

Under common law contract principles, which of the following is required for a valid contract?

Accepted Answer

Offer, acceptance, consideration, and mutual assent

Answer

A valid contract requires offer, acceptance, consideration, mutual assent (meeting of the minds), and capacity; a writing is only required by the Statute of Frauds for certain contracts.

Question 2

The mailbox rule provides that an acceptance is effective:

Accepted Answer

When the offeree deposits it in the mail

Answer

Under the mailbox rule, acceptance is effective upon dispatch — when properly mailed — not upon receipt by the offeror.

Question 3

Under Article 2 of the UCC, a merchant's written offer to buy or sell goods stating it will be held open is irrevocable for the stated period (up to three months) without consideration. This is called a:

Accepted Answer

Firm offer

Answer

UCC § 2-205 creates the firm offer rule, making a signed written offer by a merchant irrevocable for the stated time (not exceeding three months) without requiring consideration.

Question 4

Which of the following contracts is within the Illinois Statute of Frauds and must be in writing to be enforceable?

Accepted Answer

A two-year employment contract

Answer

Contracts that cannot be performed within one year of formation — such as a two-year employment contract — must be evidenced by a writing under the Statute of Frauds.

Question 5

Promissory estoppel allows enforcement of a promise without consideration when:

Accepted Answer

The promisee reasonably and foreseeably relied on the promise to their detriment

Answer

Promissory estoppel requires a clear promise, foreseeable and actual reliance by the promisee to their detriment, and injustice that can only be avoided by enforcement.

IL Bar - Illinois Bar Exam Practice Test

IL Bar - Illinois Bar Exam Practice Test

IL Bar Contracts