AR Bar Contracts 1 — Questions and Answers
Question 1: Under Arkansas contract law, which element is NOT required to form a valid contract?
- Offer
- Acceptance
- Consideration
- Writing (Correct answer)
Correct answer: Writing
A writing is not required for most contracts; oral contracts are generally enforceable in Arkansas unless the Statute of Frauds applies.
Question 2: Under the Arkansas Statute of Frauds, which type of contract must be in writing to be enforceable?
- A contract for the sale of goods worth $400
- A contract for the sale of real estate (Correct answer)
- A service contract to be completed in 6 months
- A contract between two merchants
Correct answer: A contract for the sale of real estate
Contracts for the sale of real estate must be in writing to be enforceable under the Arkansas Statute of Frauds.
Question 3: In Arkansas, the general statute of limitations for a written contract action is:
- 3 years
- 5 years (Correct answer)
- 7 years
- 10 years
Correct answer: 5 years
Arkansas provides a five-year statute of limitations for actions on written contracts under Ark. Code Ann. § 16-56-111.
Question 4: Under the Arkansas UCC, a merchant's firm offer is irrevocable for up to how long without separate consideration?
- 30 days
- 60 days
- 3 months (Correct answer)
- 6 months
Correct answer: 3 months
Under UCC § 2-205, a merchant's written firm offer is irrevocable for the stated period, not to exceed three months.
Question 5: Which doctrine allows an Arkansas court to refuse enforcement of a contract that is shockingly unfair at the time it was formed?
- Frustration of purpose
- Unconscionability (Correct answer)
- Impossibility
- Promissory estoppel
Correct answer: Unconscionability
The doctrine of unconscionability allows courts to refuse to enforce contracts that are oppressively unfair at the time of formation.
Question 6: Under Arkansas contract law, an anticipatory repudiation occurs when:
- A party fails to perform on the due date
- A party clearly indicates before the due date that it will not perform (Correct answer)
- A party's performance becomes impossible
- A party materially breaches a minor term
Correct answer: A party clearly indicates before the due date that it will not perform
Anticipatory repudiation occurs when a party unequivocally communicates its intent not to perform before the performance date arrives.
AR Bar Contracts 1
Under Arkansas contract law, which element is NOT required to form a valid contract?