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

An intended third-party beneficiary's rights vest when they materially change position in reliance, bring suit, or manifest assent, after which the contract cannot be modified to their detriment without consent.

Question 2

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

Accepted Answer

Extrinsic evidence showing fraud in the inducement

Answer

Fraud in the inducement is a recognized exception to the parol evidence rule; courts admit extrinsic evidence to establish it.

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

UCC § 2-306(1) requires that quantities in requirements contracts not be unreasonably disproportionate to stated estimates or prior course of dealing.

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

Frustration of purpose excuses performance when an unforeseen event destroys the principal purpose of the contract, even though performance itself remains physically possible.

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

Restitution (quasi-contractual recovery) restores to the non-breaching party the value of the benefit conferred on the breaching party, measured by the defendant's gain rather than the plaintiff's loss.

(RI Bar) Rhode Island Bar Exam Practice Test

(RI Bar) Rhode Island Bar Exam Practice Test

RI Bar Contracts 4