MN Bar Contracts and Commercial Law 1 — Questions and Answers
Question 1: Under Minnesota contract law, which element is NOT required to form a valid contract?
- Offer
- Acceptance
- Consideration
- Written documentation (Correct answer)
Correct answer: Written documentation
Minnesota follows the common law rule that contracts can be oral or written unless a statute (such as the Statute of Frauds) requires writing.
Question 2: Under the UCC as adopted in Minnesota, a merchant's firm offer to buy or sell goods is irrevocable for up to how long even without consideration?
- 30 days
- 60 days
- 90 days (Correct answer)
- 6 months
Correct answer: 90 days
Under Minn. Stat. § 336.2-205, a merchant's signed, written firm offer is irrevocable for the stated time or, if none stated, a reasonable time not exceeding three months.
Question 3: In Minnesota, which doctrine allows a court to enforce a promise that was reasonably relied upon even without consideration?
- Promissory estoppel (Correct answer)
- Unjust enrichment
- Quantum meruit
- Quasi-contract
Correct answer: Promissory estoppel
Promissory estoppel under Restatement § 90, adopted in Minnesota, enforces a promise when the promisor reasonably expects reliance and injustice can only be avoided by enforcement.
Question 4: Under the Minnesota UCC, a contract for the sale of goods at $500 or more must generally be in writing to be enforceable under the Statute of Frauds UNLESS:
- The buyer has paid in full
- The goods are specially manufactured (Correct answer)
- Both parties are merchants
- The contract is for future delivery
Correct answer: The goods are specially manufactured
Under Minn. Stat. § 336.2-201(3)(a), specially manufactured goods not suitable for sale to others in the ordinary course of business are an exception to the Statute of Frauds.
Question 5: In Minnesota, what is the standard remedy for breach of contract?
- Punitive damages
- Expectation damages (Correct answer)
- Nominal damages only
- Equitable relief only
Correct answer: Expectation damages
Minnesota courts award expectation damages to place the non-breaching party in the position they would have been in had the contract been performed.
Question 6: Under Minnesota law, which of the following is a valid defense to contract formation based on lack of mutual assent?
- Failure to mitigate damages
- Mutual mistake of fact (Correct answer)
- Anticipatory repudiation
- Accord and satisfaction
Correct answer: Mutual mistake of fact
Mutual mistake as to a basic assumption of the contract at formation can void or voidize the contract under Minnesota common law.
MN Bar Contracts and Commercial Law 1
Under Minnesota contract law, which element is NOT required to form a valid contract?