MO Bar Contracts and Commercial Law 2 — Questions and Answers
Question 1: Which common law doctrine discharges a party's contractual obligation when an unforeseen event makes performance objectively impossible?
- Frustration of purpose
- Impracticability
- Impossibility (Correct answer)
- Force majeure
Correct answer: Impossibility
The doctrine of impossibility discharges a party when an unforeseen event—such as destruction of the subject matter or death of an essential person—makes performance objectively impossible.
Question 2: Under UCC Article 2, a merchant's firm offer to buy or sell goods is irrevocable for up to how long without consideration?
- 30 days
- 60 days
- 90 days (Correct answer)
- 180 days
Correct answer: 90 days
Under UCC § 2-205, a merchant's signed written firm offer is irrevocable for the stated period or, if no period is stated, a reasonable time not exceeding three months (90 days).
Question 3: Which equitable doctrine prevents enforcement of a contract based on one party's false statement of a material fact?
- Duress
- Undue influence
- Misrepresentation (Correct answer)
- Mutual mistake
Correct answer: Misrepresentation
Fraudulent or material misrepresentation of fact that induces contract formation allows the deceived party to rescind the contract.
Question 4: A liquidated damages clause is enforceable in Missouri if it represents what?
- A penalty to deter breach
- A reasonable estimate of anticipated harm (Correct answer)
- The actual damages suffered
- An amount agreed by both parties regardless of loss
Correct answer: A reasonable estimate of anticipated harm
Liquidated damages clauses are enforceable when they represent a reasonable pre-estimate of anticipated damages and actual damages are difficult to calculate.
Question 5: Under Missouri law, which doctrine may excuse a promisee's failure to fulfill a condition precedent when that party prevented the condition from occurring?
- Waiver
- Prevention doctrine (Correct answer)
- Substantial performance
- Election of remedies
Correct answer: Prevention doctrine
The prevention doctrine excuses non-occurrence of a condition when the party benefited by that condition wrongfully prevented it from occurring.
Question 6: Which type of third-party beneficiary has vested rights that cannot be modified without their consent?
- Incidental beneficiary
- Intended beneficiary (Correct answer)
- Creditor beneficiary
- Donee beneficiary
Correct answer: Intended beneficiary
Intended beneficiaries whose rights have vested—upon their reliance, assent, or suit—cannot have those rights modified or extinguished without their consent.
MO Bar Contracts and Commercial Law 2
Which common law doctrine discharges a party's contractual obligation when an unforeseen event makes performance objectively impossible?