RI Bar Contracts 4

Question 1

A third-party beneficiary acquires enforceable rights under a contract when:

Accepted Answer

The contract is intended to benefit them and they have vested their rights

Answer

They are named in the contract

Answer

They provide consideration to the promisor

Answer

They sign the contract as a witness

Question 2

Under the parol evidence rule, which of the following evidence IS admissible?

Accepted Answer

Extrinsic evidence showing fraud in the inducement

Answer

Prior oral agreements that contradict an integrated written contract

Answer

Earlier drafts that vary the final written terms

Answer

Oral negotiations merging into the written contract

Question 3

In a requirements contract, a buyer's demand for substantially greater quantities than contemplated may be refused by the seller because:

Accepted Answer

UCC § 2-306 limits demands to those consistent with good faith and prior estimates

Answer

Requirements contracts are unenforceable for lack of certainty

Answer

The seller can always demand a price renegotiation

Answer

Only merchants can enter requirements contracts

Question 4

Frustration of purpose differs from impossibility in that frustration involves:

Accepted Answer

The purpose of the contract being destroyed even though performance remains possible

Answer

Performance being objectively impossible

Answer

A party's financial inability to perform

Answer

Force majeure events only

Question 5

Which remedy awards the non-breaching party the benefit they conferred on the breaching party to prevent unjust enrichment, regardless of contract price?

Accepted Answer

Restitution

Answer

Expectation damages

Answer

Consequential damages

Answer

Reliance damages

Question 6

Under the common law, a material modification to a contract requires:

Accepted Answer

Consideration from both parties

Answer

Only the assent of the modifying party

Answer

Written consent only

Answer

Approval of any third-party beneficiaries

Question 7

Which of the following breaches automatically triggers the right to suspend performance and sue for total breach?

Accepted Answer

Material breach

Answer

Minor breach

Answer

Technical breach

Answer

Anticipatory waiver