Contracts Formation & Enforcement Flashcards
7 cards from real FYLSX practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Contracts Formation & Enforcement flashcards as text
Under the UCC, a merchant's firm offer is irrevocable for up to how long even without consideration?
Answer: 3 months
UCC § 2-205 makes a merchant's signed, written firm offer irrevocable for the stated period or a reasonable time, but no longer than three months.
Alice mails an acceptance on Monday. Bob mails a revocation on Tuesday. The revocation arrives Wednesday; the acceptance arrives Thursday. Is a contract formed?
Answer: Yes, because acceptance was effective upon dispatch under the mailbox rule.
Under the mailbox rule, acceptance is effective upon dispatch, so the contract was formed Monday when Alice mailed her acceptance—before the revocation was even sent.
Which doctrine prevents enforcement of a contract term that is oppressive and results from unequal bargaining power?
Answer: Unconscionability
Unconscionability, recognized under UCC § 2-302 and common law, allows courts to refuse to enforce grossly unfair terms that result from unequal bargaining positions.
Tom promises to pay his nephew $5,000 if the nephew quits smoking for one year. The nephew quits and completes the year. Which element makes this promise enforceable?
Answer: Forbearance from a legal right as consideration
The nephew's forbearance from his legal right to smoke constitutes valid consideration, making the uncle's promise enforceable.
A contract is silent on price. Under the UCC, what price term is implied?
Answer: A reasonable price at the time of delivery
UCC § 2-305 allows a contract to be formed without a set price, implying a reasonable price at the time of delivery.
Which of the following is NOT a required element for a valid written contract under the Statute of Frauds for the sale of goods over $500?
Answer: The price of the goods
Under UCC § 2-201, only the quantity term is essential to satisfy the Statute of Frauds for goods contracts; price and description of parties are not required in the writing.
Dan offers to sell his car to Sue for $8,000, saying 'this offer is open for one week.' Dan revokes the offer after three days. Sue attempts to accept on day five. Is there a contract?
Answer: No, because an offer can be revoked any time before acceptance unless supported by consideration.
Without consideration or a signed firm offer (merchant rule), an offer is revocable at any time before acceptance, even if the offeror promised to keep it open.