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

UCC § 2-205 makes a merchant's signed, written firm offer irrevocable for a reasonable time not exceeding 3 months even without consideration.

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

Promissory estoppel can bar the Statute of Frauds defense when a party detrimentally relies on an oral promise to their detriment.

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

Mutual mistake about a basic assumption material to the contract typically entitles the adversely affected party to rescission.

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

An output contract obligates the buyer to purchase all of the seller's production, with quantity measured by actual output.

Question 5

When is anticipatory repudiation retracted under contract law?

Accepted Answer

Before the other party materially changes position in reliance on it

Answer

A repudiating party may retract the repudiation until the aggrieved party materially changes position, accepts it as final, or commences suit.

(RI Bar) Rhode Island Bar Exam Practice Test