HI Bar - Hawaii Bar Contracts and Sales Questions and Answers

Question 1

A contractor in Honolulu enters into a written agreement with a homeowner to build a new patio for $15,000.
The written contract is a complete and final expression of their agreement.
Before signing, the homeowner mentioned he wanted a specific type of expensive 'koa' wood, and the contractor verbally agreed.
The final written contract, however, specifies 'pressure-treated pine'.
When the contractor uses pine, the homeowner sues for breach, seeking to introduce evidence of the prior oral agreement.
Under Hawaii law, which doctrine will likely prevent the homeowner from introducing this evidence?

Accepted Answer

The parol evidence rule.

Answer

The doctrine of promissory estoppel.

Answer

The Statute of Frauds.

Answer

The doctrine of substantial performance.

Question 2

A Maui-based farmer orally agrees to sell 1,000 pounds of sweet potatoes to a restaurant in Lahaina for $800. The farmer delivers the potatoes, and the restaurant accepts them. However, the restaurant later refuses to pay, arguing the contract is unenforceable. Under Hawaii's Uniform Commercial Code (UCC), is the contract enforceable?

Accepted Answer

Yes, because the goods have been received and accepted, this action serves as an exception to the Statute of Frauds.

Answer

No, because all contracts for the sale of goods must be in writing to be enforceable.

Answer

No, because the contract price is over $500, it must be in writing according to the Statute of Frauds.

Answer

Yes, because contracts between merchants do not need to be in writing.

Question 3

A software company on Kauai enters into a contract to provide custom software and ongoing technical support for a local hotel chain. The total contract price is $100,000, with the software valued at $80,000 and the support services at $20,000. A dispute arises over the warranty provisions. Which body of law will a Hawaii court most likely apply to this 'mixed' contract?

Accepted Answer

The Uniform Commercial Code (UCC) because the predominant purpose of the contract is the sale of goods.

Answer

The Uniform Commercial Code (UCC) because the contract involves the sale of goods.

Answer

Common law because the contract includes services.

Answer

Both the UCC and common law will be applied proportionally to the different parts of the contract.

Question 4

A homeowner in Hilo hires a contractor to renovate their kitchen. The contract specifies that the contractor will install 'Brand X' granite countertops. The contractor, unable to source Brand X, installs 'Brand Y' granite countertops, which are of identical quality, color, and market value. The homeowner, however, is unhappy and declares a material breach. Which of the following is the most likely outcome in a Hawaii court?

Accepted Answer

The contractor's performance will likely be considered substantial performance, and the homeowner will only be entitled to damages for the minor deviation, if any.

Answer

The contractor will be found to be in material breach and the homeowner can cancel the contract and sue for total damages.

Answer

The homeowner is entitled to specific performance, forcing the contractor to remove Brand Y and install Brand X.

Answer

The contract is voidable by the homeowner due to the contractor's unilateral deviation from the terms.

Question 5

Which of the following agreements is required to be in writing to be enforceable under Hawaii's Statute of Frauds, as codified in Hawaii Revised Statutes § 656-1?

Accepted Answer

An agreement to cater a wedding that will take place in 18 months.

Answer

An agreement to lease a car for a term of six months.

Answer

An agreement for the sale of a custom-made surfboard for $450.

Answer

An agreement to pay the debt of another person, made to the debtor.

Question 6

A buyer in Kona rightfully rejects a shipment of non-conforming papayas from a seller. The buyer had already made a partial payment of $1,000. Under Article 2 of Hawaii's UCC, what remedy is available to the buyer regarding the papayas in their possession?

Accepted Answer

The buyer may resell the papayas and apply the proceeds to the damages owed by the seller.

Answer

The buyer must destroy the papayas to prevent their sale on the open market.

Answer

The buyer must return the papayas at their own expense and then sue for damages.

Answer

The buyer obtains full title to the papayas and can keep them without further payment.