FL Bar Contracts 2 — Questions and Answers
Question 1: When both parties to a contract are mistaken about a material fact at the time of contracting, the contract may be voided under which doctrine?
- Fraudulent misrepresentation
- Unilateral mistake
- Mutual mistake (Correct answer)
- Impossibility
Correct answer: Mutual mistake
Mutual mistake as to a basic assumption on which the contract was made allows the adversely affected party to void the contract if the risk was not allocated to them.
Question 2: Under the UCC battle of the forms (§ 2-207), additional terms in an acceptance between merchants:
- Always become part of the contract
- Become part of the contract unless materially altering it or the offeror objects (Correct answer)
- Never become part of the contract
- Require a new signed agreement
Correct answer: Become part of the contract unless materially altering it or the offeror objects
UCC § 2-207(2) provides that between merchants, additional terms in an acceptance automatically become part of the contract unless they materially alter it, the offer limits acceptance to its terms, or the offeror objects.
Question 3: A contract that is impossible to perform due to the unexpected destruction of the subject matter is discharged under which doctrine?
- Frustration of purpose
- Commercial impracticability
- Objective impossibility (Correct answer)
- Anticipatory repudiation
Correct answer: Objective impossibility
Objective impossibility discharges a contract when the specific subject matter necessary for performance is destroyed through no fault of either party.
Question 4: Which of the following is NOT a recognized exception to the Statute of Frauds for real property contracts in Florida?
- Part performance
- Full payment of the purchase price alone (Correct answer)
- Detrimental reliance (equitable estoppel)
- Possession plus improvements
Correct answer: Full payment of the purchase price alone
Under Florida law, full payment of the purchase price alone, without possession or improvements, is generally insufficient to remove a real property contract from the Statute of Frauds.
Question 5: Which type of third-party beneficiary has vested rights and can sue directly on the contract?
- Incidental beneficiary
- Donee beneficiary before acceptance
- Intended beneficiary after vesting (Correct answer)
- Creditor beneficiary before performance
Correct answer: Intended beneficiary after vesting
An intended third-party beneficiary's rights vest upon their knowledge and reliance, or upon bringing suit, giving them a direct cause of action against the promisor.
Question 6: When a seller of goods repudiates the contract before the delivery date, the buyer may:
- Only wait until the delivery date to sue
- Immediately treat the repudiation as a breach and sue (Correct answer)
- Demand adequate assurance and wait indefinitely
- Accept the goods at any price the seller demands
Correct answer: Immediately treat the repudiation as a breach and sue
Anticipatory repudiation allows the aggrieved party to treat the repudiation as an immediate breach, seek cover, and sue without waiting for the performance date.
FL Bar Contracts 2
When both parties to a contract are mistaken about a material fact at the time of contracting, the contract may be voided under which doctrine?