Contracts and Sales Flashcards
7 cards from real IN BAR 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 and Sales flashcards as text
A 17-year-old buys a car, continues driving it after turning 18, and makes two payments as an adult. The contract is most likely:
Answer: Enforceable, because continued use and payment after majority ratifies it
A minor's contract is voidable, but conduct affirming the contract after reaching majority constitutes ratification.
A general contractor uses a subcontractor's bid to compute its own winning bid, and the sub then tries to revoke. The sub's bid is most likely:
Answer: Irrevocable under promissory estoppel because reliance was foreseeable and actual
Under Drennan-style promissory estoppel, a sub's bid is held open when the general foreseeably and reasonably relies on it in submitting its own bid.
Goods are destroyed in transit under a shipment contract (FOB seller's city) after the seller duly delivered them to the carrier. Who bears the risk of loss?
Answer: The buyer, because risk passed on delivery to the carrier
In a shipment contract, risk of loss passes to the buyer when the goods are duly delivered to the carrier.
An employer threatens to fire an at-will employee unless she signs a release of valid legal claims, leaving her no reasonable alternative. The release is most vulnerable to attack on grounds of:
Answer: Economic duress
A wrongful threat that leaves the victim no reasonable alternative supports rescission for economic duress.
A seller delivers goods and the buyer uses them for two months before complaining of obvious defects. Under UCC 2-606 and 2-602, the buyer has most likely:
Answer: Accepted the goods by failing to make an effective rejection within a reasonable time
Acceptance occurs when the buyer fails to reject within a reasonable time after an opportunity to inspect, or acts inconsistently with the seller's ownership.
A liquidated damages clause in a construction contract fixes damages at $1,000 per day of delay. The clause is enforceable if:
Answer: Damages were difficult to estimate at formation and the amount is a reasonable forecast
Liquidated damages are valid when actual damages were hard to estimate at contracting and the sum is a reasonable forecast rather than a penalty.
A debtor honestly disputes the amount owed and sends a check marked 'payment in full' for a lesser sum, which the creditor cashes. The debt is most likely:
Answer: Discharged by accord and satisfaction because the claim was subject to a good-faith dispute
Cashing a full-payment check tendered in good faith on a genuinely disputed claim effects an accord and satisfaction.