VT Bar Contracts and Commercial Law 4

Question 1

Lena contracts to perform at a concert for $10,000. Before the performance date, Lena becomes seriously ill and cannot perform. Which doctrine best addresses this situation?

Accepted Answer

Impossibility (impracticability) of performance

Answer

When performance becomes objectively impossible due to the promisor's illness in a personal services contract, the doctrine of impossibility excuses non-performance.

Question 2

Under UCC Article 2, when may a seller withhold delivery of goods without breaching the contract?

Accepted Answer

When the buyer is insolvent or there are reasonable grounds to doubt the buyer's ability to pay

Answer

UCC §2-702 allows a seller to withhold delivery when the buyer is insolvent, and §2-609 allows demanding adequate assurance when there are reasonable grounds for insecurity.

Question 3

A third-party beneficiary who has not yet relied on the contract may have her rights extinguished if the original contracting parties modify the contract. When do the third-party beneficiary's rights vest and become irrevocable?

Accepted Answer

When the beneficiary materially changes position in reliance, assents to the contract, or brings suit to enforce it

Answer

Under Restatement (Second) of Contracts §311, a beneficiary's rights vest — and the contract cannot be modified to eliminate them — when the beneficiary materially relies, assents, or brings suit.

Question 4

Which element distinguishes a bilateral contract from a unilateral contract?

Accepted Answer

A bilateral contract is formed by mutual exchange of promises; a unilateral contract is accepted through performance

Answer

A bilateral contract is formed when both parties exchange promises, whereas a unilateral contract is formed only upon the offeree's completion of the requested performance.

Question 5

Employer and Employee enter a written employment contract for two years. After six months, both orally agree to extend the term to three years total. Is the oral modification enforceable?

Accepted Answer

No, because the contract as modified cannot be performed within one year from the modification and must be in writing

Answer

Under the Statute of Frauds, a contract that cannot be performed within one year of its making must be in writing, and this applies to modifications that extend performance beyond one year.

(VT Bar) Vermont Bar Exam Practice Test

(VT Bar) Vermont Bar Exam Practice Test

VT Bar Contracts and Commercial Law 4