Contracts Flashcards
7 cards from real Multistate Bar Exam 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 flashcards as text
Seller and Buyer have a written agreement for sale of 200 tables. Buyer claims seller orally agreed to also paint the tables. Under the parol evidence rule, this oral promise is:
Answer: Inadmissible if the written contract is fully integrated
The parol evidence rule bars extrinsic evidence of prior or contemporaneous agreements that would add to or contradict a fully integrated written contract.
A subcontractor's bid is accidentally $50,000 lower than intended due to a clerical error. The general contractor relies on the bid and is awarded the project. The subcontractor discovers the error and refuses to perform. A court will most likely:
Answer: Allow rescission because of the unilateral mistake if contractor knew or should have known of the error
A unilateral mistake may allow rescission when the non-mistaken party knew or should have known of the error — a $50,000 discrepancy from competitors' bids would put the contractor on notice.
A contract for the sale of 1,000 custom uniforms is silent on the delivery schedule. Under the UCC, delivery is due:
Answer: Within a commercially reasonable time after formation
UCC § 2-309 provides that if no time for delivery is stated, delivery must occur within a commercially reasonable time after contract formation.
Parties form an oral contract for the sale of a $600 antique vase. The seller sends the buyer a written confirmation naming the price and quantity; the buyer, also a merchant, receives it but says nothing for 2 weeks. Under the UCC merchant exception to the Statute of Frauds:
Answer: The written confirmation satisfies the Statute of Frauds against the buyer who failed to object within 10 days
Under UCC § 2-201(2), a written merchant confirmation sent to another merchant satisfies the Statute of Frauds against the recipient unless the recipient objects within 10 days of receipt.
A party seeks consequential damages for lost profits after a breach. Under Hadley v. Baxendale, these damages are recoverable only if:
Answer: The lost profits were foreseeable at the time of contracting
Under the rule of Hadley v. Baxendale, consequential damages are recoverable only if they were within the reasonable contemplation of the parties as a probable result of breach at the time of contracting.
An employer agrees to employ a worker 'for life.' The employee works for two years and is then fired without cause. Under the majority common law view, the employment agreement is:
Answer: Terminable at will because lifetime contracts lack mutuality
Under the majority view, 'employment for life' is terminable at will because it lacks mutuality — courts treat such agreements as indefinite employment absent extraordinary consideration.
Alpha contracts with Beta to build a garage. Beta assigns the contract to Gamma, who does poor work. Alpha sues. Against whom can Alpha recover?
Answer: Both Beta and Gamma, because Beta remains liable after delegation
Delegation of duties does not relieve the delegating party (Beta) of liability — Beta remains secondarily liable, and Gamma is primarily liable as the party who actually performed.