FL Bar Contracts 1 — Questions and Answers
Question 1: Under the UCC, a merchant's firm offer to hold an offer open is irrevocable for how long without consideration?
- Up to 30 days
- Up to 3 months (Correct answer)
- Up to 6 months
- Indefinitely
Correct answer: Up to 3 months
Under UCC § 2-205, a merchant's signed, written firm offer is irrevocable for a stated period not exceeding 3 months.
Question 2: Which doctrine allows a court to enforce a promise even absent consideration when the promisor should have reasonably expected the promisee to rely on it?
- Quasi-contract
- Promissory estoppel (Correct answer)
- Accord and satisfaction
- Novation
Correct answer: Promissory estoppel
Promissory estoppel (detrimental reliance) enforces a promise to prevent injustice when the promisee foreseeably relied on it to their detriment.
Question 3: A contract for the sale of goods worth $500 or more must be evidenced by a writing under which rule?
- Parol Evidence Rule
- UCC Statute of Frauds (Correct answer)
- Common law Statute of Frauds
- Mirror Image Rule
Correct answer: UCC Statute of Frauds
UCC § 2-201 requires a signed writing for contracts for the sale of goods priced at $500 or more.
Question 4: Under the common law mirror image rule, an acceptance that adds new terms is treated as:
- A valid acceptance
- A counteroffer (Correct answer)
- A conditional acceptance
- A modification
Correct answer: A counteroffer
At common law, any acceptance that varies or adds terms is a counteroffer, not a valid acceptance, because it fails to mirror the offer.
Question 5: Which remedy places the non-breaching party in the position they would have been in if the contract had never been made?
- Expectation damages
- Reliance damages (Correct answer)
- Consequential damages
- Liquidated damages
Correct answer: Reliance damages
Reliance damages reimburse the non-breaching party for out-of-pocket expenses incurred in reliance on the contract, restoring the pre-contract status quo.
Question 6: In Florida, a non-compete covenant in an employment agreement is enforceable if it is:
- Unlimited in duration and geographic scope
- Supported by a legitimate business interest and reasonably limited (Correct answer)
- Only agreed to at the time of signing, regardless of scope
- Broader than necessary to protect trade secrets
Correct answer: Supported by a legitimate business interest and reasonably limited
Florida Statutes § 542.335 requires non-compete covenants to be supported by a legitimate business interest and to be reasonably limited in time, area, and scope.
FL Bar Contracts 1
Under the UCC, a merchant's firm offer to hold an offer open is irrevocable for how long without consideration?