VT Bar Contracts and Commercial Law 3

Question 1

Greg agrees to buy Heather's business for $500,000 contingent on Greg securing financing within 60 days. Greg makes no effort to obtain financing and the deadline passes. Which doctrine applies?

Accepted Answer

Prevention doctrine — Greg cannot benefit from a condition he prevented

Answer

Under the prevention doctrine, a party cannot benefit from the failure of a condition when that party's own conduct caused or prevented the condition from occurring.

Question 2

Under UCC Article 2, the 'perfect tender rule' applies to:

Accepted Answer

Single-delivery contracts, giving the buyer the right to reject for any nonconformity

Answer

UCC §2-601 allows a buyer to reject the whole, accept the whole, or accept any commercial units and reject the rest if goods or tender of delivery fail to conform in any respect.

Question 3

Which of the following best describes a requirements contract under UCC Article 2?

Accepted Answer

A contract to buy all goods the buyer requires from a specific seller

Answer

A requirements contract obligates the buyer to purchase all of their requirements for a specific good from the seller, with quantity measured by the buyer's actual needs.

Question 4

Dana orally promises to pay her nephew $20,000 if he refrains from drinking alcohol until age 30. The nephew complies. Under which theory is the promise most likely enforceable?

Accepted Answer

Consideration, because the nephew's forbearance constitutes legal detriment

Answer

Forbearance from a legal right constitutes valid consideration, making the promise enforceable on consideration grounds (following the logic of Hamer v. Sidway).

Question 5

A contract for the sale of real property contains an integration clause stating it is the 'complete and final agreement.' The buyer seeks to introduce evidence of a prior oral promise by the seller to repair the roof. Under the parol evidence rule:

Accepted Answer

The oral evidence is barred because it contradicts or adds to the fully integrated written agreement

Answer

When parties have a fully integrated written agreement, the parol evidence rule bars prior or contemporaneous oral agreements that would contradict or vary the written terms.

(VT Bar) Vermont Bar Exam Practice Test

(VT Bar) Vermont Bar Exam Practice Test

VT Bar Contracts and Commercial Law 3