RI Bar Contracts 2

Question 1

Under the UCC, a merchant's firm offer is irrevocable for how long if no time period is stated?

Accepted Answer

A reasonable time not to exceed 3 months

Answer

30 days

Answer

60 days

Answer

90 days

Question 2

Which doctrine prevents a party from asserting the Statute of Frauds when the other party has detrimentally relied on the oral contract?

Accepted Answer

Promissory estoppel

Answer

Quasi-contract

Answer

Unjust enrichment

Answer

Accord and satisfaction

Question 3

A contractor builds a garage on the wrong lot due to a mutual mistake. The most likely remedy is:

Accepted Answer

Rescission of the contract

Answer

Compensatory damages for lost profits

Answer

Specific performance

Answer

Liquidated damages

Question 4

Which of the following best describes an 'output contract' under the UCC?

Accepted Answer

Buyer agrees to purchase all goods the seller produces

Answer

Seller agrees to supply all goods the buyer requires

Answer

Parties fix both quantity and price at formation

Answer

A contract where quantity is determined by auction

Question 5

When is anticipatory repudiation retracted under contract law?

Accepted Answer

Before the other party materially changes position in reliance on it

Answer

Never; once repudiated the contract is void

Answer

Only with written notice to the breaching party

Answer

After the innocent party elects to treat it as a total breach

Question 6

Under the perfect tender rule applicable to single-delivery contracts, if goods fail to conform in any respect, the buyer may:

Accepted Answer

Accept, reject, or accept any commercial unit and reject the rest

Answer

Only reject the entire shipment

Answer

Only accept the entire shipment and sue for damages

Answer

Retain the goods without payment

Question 7

A contract clause specifying $500 per day for late delivery is enforceable as liquidated damages when:

Accepted Answer

The amount is a reasonable estimate of actual harm and damages are difficult to calculate

Answer

The amount exceeds probable damages to deter breach

Answer

The clause is labeled 'penalty' in the contract

Answer

Both parties are merchants under the UCC