MBE Contracts Practice Test

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• How does risk of loss operate in a contract for the sale of goods, and what determines who bears it at different points?
• An honest dispute arises over whether plumbing installed in a condominium meets contractual specifications. The owner offers to pay $10,000 if the plumber replaces the plumbing with a different grade of pipe. The plumber accepts. After replacement, the owner refuses to pay. A fact-finder finds the original plumbing satisfied the contract, and that the parties entered into a substitute agreement. What amount should be awarded?
• Between June 1 and June 10, the butcher's costs to rent space: what is the amount recoverable for the delay?
• An owner hires a man to be captain of a ferry for the upcoming season. The owner later hires a woman as captain. The man becomes ill and cannot work that season. The owner hires the woman to serve the season and tells the man not to worry. The man sues for breach. Will he succeed?
• Define undue influence and how it affects contract validity.
• Under a long-standing requirements contract between a restaurant owner and a dairy farmer, the farmer delivers substantially more product than customary on a delivery date. The owner attempts to accept only half, but the farmer insists the goods were already packaged. Which statement best describes whether the tender was conforming?
• Is the tutor entitled to recover the remaining $200 after accepting the bike in lieu of the $500 bonus?
• The owner and a connoisseur agree to sell a rare eighteenth-century chest at a price to be determined only by a trusted antiques dealer. The dealer examines the chest and dies before deciding. A reasonable price can be established for the chest by the court. Is there likely an enforceable contract?
• A construction company contracted with a manufacturer to purchase 100 identical windows, to be delivered in four shipments. Payments were not specified in the contract. The manufacturer ships the first two shipments; the construction company pays one-fourth of the contract price upon each delivery. On June 1, the manufacturer demanded full payment before any further shipments. Which statement is true?
• A widow sells a business to a nonprofit organization for $25,000. The contract is silent on a zoning-board approval condition, but the organization's agent says it is a condition. The organization later sues for breach after zoning approval would have been granted. The court should rule:
• In a sale of goods with no definite quantity term, is there a contract if there is no conduct filling the gap?
• Who can sue as a third-party beneficiary when there is an intended beneficiary?
• How may a party respond to a demand for adequate assurances when there are reasonable grounds to doubt performance?
• A homeowner met with several general contractors regarding significant renovations. After discussions with one contractor, the contractor sent a letter offering to perform the renovation for $10,000. The homeowner replied that he would pay $8,500 and that he would not pay more. The contractor began preparations and started acquiring materials. One week later, the contractor realized a $1,600 cost overrun due to the homeowner's exacting aesthetic. The homeowner refused to pay more, and the contractor discontinued work. Who has the better claim?
• A boutique hotel contracts with a seamstress to make 500 pillows using white fabric and down filling. The seamstress assigns the work to her former business partner, who uses the same fabric but fills the pillows with synthetic microfiber instead of down. The hotel sues for breach of contract. The hotel had not released the seamstress from liability. Which statement is correct?
• What is the UCC Perfect Tender Rule's stance on rejecting nonconforming goods?
• When are consequential damages recoverable for breach of contract and what must the plaintiff show?
• Which statement is true about the bike sale scenario?
• A recent college graduate offered to buy all of the computers from a struggling online retailer for $10,000 under terms stating 'reasonable number of computers, as the closing retailer no longer needed them.' The graduate, knowing there were 50 computers, took 10; later demanded remaining 40; the retailer refused and returned the $10,000. Is there a valid contract for the remaining 40 computers?
• Which of the following are recognized exceptions to the Statute of Frauds for UCC contracts for the sale of goods?
• Distinguish express warranties from implied warranties in the sale of goods.
• In a contract to build a tree house, the contractor knew that a tree had a common fungal infection in its core that would weaken the tree even if treated, and he did not require inspection. The contractor also knew treatment was expensive and would require additional supports. If the fungal infection causes issues after construction, who bears the risk under these facts?
• In interpreting a contract, the certainly included rule is used when a term is ambiguous but the parties clearly intended to include it. Which option correctly identifies this rule?
• What constitutes valid consideration in contract formation?
• A homeowner offers to pay $5,000 for remodeling a bathroom. The contractor later emails that he cannot complete for less than $5,500. The homeowner replies that she cannot pay $5,500, but if the contractor changes his mind he can begin before the end of the week. The contractor begins work the next day. Was a contract formed at the price of $5,000?
• How does a court analyze duress and enforceability with mutual assent?
• Two siblings start a coffee shop. They orally agree that each will pay the guitarist $10,000 from their sale proceeds. The guitarist relies on this promise and makes a down payment on a car before the sale is completed, and the siblings later sign a written contract stating that the sister will pay a specified amount to the guitarist. Under promissory estoppel, is the guitarist likely to prevail?
• On January 5, a buyer and seller contract for the delivery of 100 widgets by February 20. They sign a writing. On February 3, they orally agree to postpone delivery to March 1. When the widgets arrive on March 1, the buyer refuses to pay. If the seller sues for breach, who is likely to succeed?
• A professor offers to sell a book for $1,000, open for one week. The colleague learns the book has already been sold before acceptance. Will the colleague likely succeed in a breach action?
• How are damages calculated in the sale of goods under the UCC when the seller breaches?
• A contract breach in which a party fails to perform a promise that goes to the essence of the contract is called?
• Economic duress and its effect on contract formation.
• How is the implied warranty of fitness for a particular purpose properly disclaimed under the UCC?
• A written firm offer commits to providing up to 10,000 tubes of toothpaste over 45 days at $1 per tube. After 30 days, the price increases to $1.10. The retailer orders 6,000 tubes and later 4,000 more within the 45-day window. What price is the supplier permitted to charge for the toothpaste?
• A coffee shop owner hires an eccentric artist to decorate the shop. The artist sells her decorating business and delegates contracts to a graduate. If the coffee shop owner refuses to accept performance by the graduate, is the owner liable for breach?
• What is anticipatory repudiation, and what remedies does it trigger?
• A wedding planner contracts with a bakery to make cupcakes. The bakery assigns the contract to a pastry chef, who is equally skilled. The planner did not object. The pastry chef fully performed and delivered cupcakes that conform to the contract. Which statement best supports the planner’s position?
• An employee signs an employment contract that specifies salary and a 30-hour minimum weekly requirement but does not specify any bonus terms. The employer later announces a new bonus program and tells the employee that, in addition to logging monthly sales online, the employee must call the company's central office on the first Friday of each month to report sales. The employee logs online but does not make the phone call; the company then insists on the bonus. Is there a contract for the bonus?
• Which of the following is an exception to the Statute of Frauds based on admission in court?
• A couple leases space in a mall that is not finished by the start date; the mall won’t be ready until August 1. The first month’s rent is waived, but there is no liquidated-damages clause. The delay causes $3,000 in storage costs and $10,000 in lost sales. Which amount are they entitled to recover for the delay?
• A comic-book collector signs a written contract with a man who has inherited a large collection. The collector asks to include a rare Batman issue by email; the contract lists the included comics but not the Batman issue. The Batman issue is missing from the shipment. The collector sues; the court rules based on the parol-evidence rule. Why?
• If a seller tenders goods that do not conform to the contract, the buyer's right is to:
• What elements must be proven to establish common-law fraud in contract formation?
• How may a seller effectively disclaim the implied warranty of merchantability under the UCC?
• A produce wholesaler offers to buy all of a farmer’s corn for two years. The farmer accepts. Six months later the wholesaler repudiates and buys from another source. Is the farmer likely to prevail on a breach claim?
• Which contracts require a writing under the Statute of Frauds at common law, and what is the general rule?
• A homeowner hires a septic cleaning company; The company bills $500, due in 60 days; The homeowner informs the company he cannot pay; The suit is filed and dismissed without prejudice as premature. Is the dismissal proper?
• What is the good faith requirement in contract performance under the UCC and CL?
• An offer to sell a wedding dress for $5,000 remains open for 30 days. The offeree asks whether the price includes a custom-made veil and later accepts the offer within the 30 days. Did a contract form for the dress at $5,000?
• A jeweler and a man negotiating a ring sale exchange emails that include a counteroffer and a near-simultaneous acceptance. Is there a binding contract?
• Under the nature magazine contract, what is the subscriber's basis for recovery?
• In the florist contract, who bears the risk of loss when delivery is handled by a carrier and no risk-of-loss clause exists?
• Delegation of duties under a contract generally does not relieve the delegator of liability unless there is:
• What are the differences among course of dealing, course of performance, and usage of trade in contract interpretation?
• How do mistakes of fact affect contract validity in mutual and unilateral contexts?
• Explain the preexisting duty rule and how the UCC allows modification without new consideration.
• Under the swing set arrangement, did the woodworker's delivery within two weeks create a binding contract given the father's request to deliver within one week?
• A high-rise building owner signs a written contract with a company to maintain and service the building's elevators. The contract contains an integration clause stating it is the entire and final agreement. The company later discovers the elevators are significantly older than represented and attempts to force a large price increase. The owner refuses and hires another company at a cost between the original price and the demanded price. Is the owner’s refusal to pay the higher price defensible?
• What is the general statute of limitations for contract actions?
• Which statement best describes termination of an offer?
• How does the parol evidence rule interact with ambiguity and interpretations?
• A clothing maker’s contract provides returns only for non-coquelicot colored t−shirts, yet a store argues past practice allowed returns of coquelicot shirts. The court should do which of the following?
• A sale of an antique car includes a loan-approval condition discussed orally but not written. The contract is totally integrated. Will the court admit evidence of the oral loan condition?
• A woman emails her friend that she would like to buy the friend's teacup collection for $1,000 when times are better, and the friend emails back agreeing. They do not exchange money or teacups and meet a year later; the friend says she will deliver next weekend and accept a check then. The woman says she would pay $750; the friend says, 'Haven’t we already discussed this? Sold.' The next day the friend hands over the teacups and the woman writes a check for $750. The friend asks for the remaining $250. The woman keeps the teacups. Is the woman liable for the remaining $250?
• An advertisement promising a free item to the next purchaser is typically interpreted as what?
• Which term refers to industry-wide custom used to interpret contract terms?
• Differentiate between an integrated contract and a partially integrated contract.
• What did the original tutoring agreement between the mother and the tutor specify?
• What is restitution as a contract remedy?
• Under the Statute of Frauds, what performance-based action can satisfy the writing requirement for a contract for goods?
• What defines a firm offer under UCC 2-205, and how long must it stay open?
• A dancer signs a contract with a traveling circus to travel and perform as an aerialist for six months. After two weeks she is injured and briefly hospitalized; the circus hires another aerialist. After one more week, she is cleared to return but the circus refuses to honor the remainder. Under contract law, did the dancer's two weeks of non-performance constitute a material breach?
• Anticipatory repudiation occurs when a party clearly indicates they will not perform what is due. Which statement correctly defines anticipatory repudiation?
• Explain impossibility and its effect on contractual obligations.
• Distinguish assignment from delegation and summarize common restrictions.
• When a contract is modified, a traditional rule often requires new consideration for the modification to be enforceable. Which statement is true?
• If a contractor delegates duties to a substitute and does not release the original contractor from liability, who bears responsibility for nonperformance?
• On April 1, a buyer agreed in writing to purchase an antique car for $20,000. On April 10, the buyer accepted the car and paid $15,000 with a check marked 'This check is in full and final satisfaction of my obligation under our April 1 agreement.' The seller deposited the check. If the buyer sues for the $5,000 difference, will the accord and satisfaction defense likely succeed?
• What is the general rule about assignment restrictions?
• How do bilateral and unilateral contracts differ in terms of acceptance?
• What is the Parol Evidence Rule and its main exceptions?
• Under the UCC, when may modifications be enforceable without new consideration?
• A homeowner signed a written contract to build a swimming pool for $40,000, payable upon completion. The company delegated its duty to an independent contractor, who abandoned the job. The homeowner then hired a partnership to complete the pool for $50,000. Can the homeowner sue the company for expectation damages of $10,000?
• Under the Statute of Frauds, a signed written acknowledgment from the seller that lists quantity and style but omits price, and is received by the buyer who remains silent, followed by shipment two weeks later, raises which outcome about enforceability of the contract?
• What is the rule for open terms in a contract under the UCC, such as price or delivery terms?
• What is the implied covenant of good faith and fair dealing in contract modifications?
• In a contract where a local farmer agrees to sell the chef a specified amount of organic tomatoes to be delivered on August 1, the farmer informs on June 15 that part of the crop is infested and he may not deliver on time. Does the chef have valid grounds to cancel the contract?
• A homeowner entered into oral contracts with both a painter and a landscaper to perform services. The landscaper began work and realized cost increases due to the soil. The homeowner later told the painter he could not continue. The painter had already purchased materials, including glass for a mosaic, and paid for a city permit to park a van. Which of the following would not be a possible liability for the homeowner?
• A beauty products store owner shows a car to a customer; the seller tells the customer to test drive; The sale price is agreed; After purchase, the buyer learns the car will require a costly engine overhaul. Is the buyer entitled to relief?
• Which statement about the implied warranty of merchantability in the sale of goods is true?
• A painter contracts to paint a house while the homeowner is away and delegates the job to a second painter, taking an advance and agreeing to split profits. The first painter then works on another job and leaves the home unpainted. Does the homeowner have a claim against the first painter?
• A company leases office space and contracts with a supplier to furnish the office. The contract contains an integration clause stating it is the entire agreement. The term cherry in the contract is disputed: wood type versus appearance. The court applies the certainly included rule. Which statement best describes the interpretation rule for such a term?
• A man plans to gift an antique desk to his brother. He tells his brother he will deliver the desk when he moves out of town in two weeks. An appraiser later informs him the desk is worth well over $20,000. The man keeps the desk. The brother sues to recover. Is the promise enforceable as a contract?
• A port authority contracts with a crane company to assist with loading containers. A crane defect causes a container to fall and injure a passerby. The port authority settles with the passerby and seeks to recover the settlement from the crane company for breach of contract. What is the crane company's best defense?
• A library and an artist sign a written contract to purchase a sculpture for $1,000 due upon delivery. Before signing, the agent notes that the library’s obligation is conditioned on the chairperson’s approval, which is orally obtained the next day. Ten days later the artist decides not to sell. If the library sues for breach, is there a valid contract despite the contingency?
• A wedding cupcake contract involves assignment to a substitute pastry chef who performs properly. Which statement best describes the contract status?
• In a delivery contract with F.O.B. terms to a store and an industry practice allowing a 30-day delivery leeway, which fact gives the manufacturer its strongest breach defense?
• A farmer offers his brother an option to purchase a tractor for six months and the brother pays $200 to keep the option open. The farmer dies; on August 15 the brother notifies the executor that he wants to exercise the option. The executor refuses. Is the brother likely to prevail?
• A general contractor relies on a subcontractor’s bid to prepare a project bid. The subcontractor later demands higher remuneration after the contract is awarded. The general contractor seeks relief on the basis of promissory estoppel. Which statement is correct?
• In the law student's case, the four-year-late promise to repay revives the debt. Which statement best describes this effect?
• If a non-breaching party seeks damages for a substitute performance, the measure is generally the difference between the cost of the substitute and the contract price. Which of the following is the correct damage measure?
• A woman offers to sell her office printer to a friend for $450. The offer states that acceptance can be mailed to the woman's business address, and that the friend should let her know within a couple weeks. The friend immediately accepts by mailing to the woman's home address. The woman only checks her home mailbox once a week and does not see the acceptance; she then sells the printer to another buyer. Will the friend succeed in an action for breach of contract?
• An art owner and an art collector agreed on a price for a painting. The owner promises in writing to sell at that price any time before month-end. On the last day, the collector sends a check. The owner receives it the next day and refuses to sell. Which best supports that no contract was formed?
• Which doctrines excuse performance when unforeseen events make performance impossible or commercially impracticable?
• Under common law, what is required for a contract offer to be valid?
• A gardener and a carpenter contracted in writing for the carpenter to repair the gardener's four identical beehives for $500 each. The gardener delivers all four beehives to the carpenter for repair. The carpenter delivered the first two beehives without issue. Upon delivery of the third beehive, the carpenter demanded a payment of $1,500. Is the gardener required to make the demanded payment at this time?
• What is the correct remedy for the store in the shingles case if the builder breaches by rejecting late delivery?
• In a personal services contract, the death of the promisor generally affects the contract how?
• Which scenario best demonstrates mutual mistake that undermines contract validity?
• A fully integrated contract with a merger clause generally bars extrinsic evidence of prior terms, but collateral agreements may still be admitted. Which statement is most accurate?
• What is the mailbox rule for acceptance?
• If a contract delegates duties to a third party, does the delegating party remain liable to the other party?
• A math tutor entered into an agreement with a father to provide one month of tutoring for the father's son. The agreement provides for eight lessons at $1,000 total, plus $350 for materials from a particular educational services provider. The provider, a new company, is expected to make a sale. A week after the agreement, the tutor demands an additional $250 to tutor, and the father refuses. The provider sues. The provider is an incidental beneficiary. What is the likely outcome?
• Who is bound in the bike sale scenario after the assistant's offer of $75 and the owner's acceptance?
• Explain the rules governing assignment and delegation, and the obligations of the obligor after delegation?
• Which statement best describes the contract concept illustrated when a party promises to perform and the other party accepts by performance?
• A buyer and an artist broker a deal for a large framed mirror. The artist waits to see how many people pass by before accepting. The next morning the mirror is broken. The buyer pays $500 and takes the mirror; the artist demands the remaining $500. Is the buyer liable for the remaining $500?
• A licensing agreement provides that a manufacturer may use an inventor's patent for ten years. The inventor assigns his rights to receive payments under the license to a corporation in which he is the controlling shareholder, without compensation. After the inventor dies, his stock is devised to his daughter, and all remaining property to his son. To whom should the manufacturer make payments under the licensing agreement?
• Define promissory estoppel and when is it enforceable?
• Is the law student's promise contained in the letter enforceable?
• Under anticipatory repudiation, if one party clearly indicates it will not perform when performance is due, the other party may:
• A general contractor’s lowest bidder sues for breach after the contractor hires a second installer at a lower bid. Will the subcontractor prevail?
• In the parol evidence issue involving the jeweler and the goldsmith, the court admitted evidence about the earrings but not the rose-gold option. Which statement best reflects how extrinsic terms are handled under the written contract?
• Which statement best describes an illusory promise?
• Under the UCC, can a contract for the sale of goods be formed even if the price is not specified?
• Who may sue on the implied warranty of merchantability in a sale of goods?
• On March 1, a company contracts with a singer to perform at a company picnic for $10,000. On March 17 the singer signs a movie contract. On April 1 the company hires a replacement for $15,000. On April 25 the singer withdraws from the movie deal but remains available. The company lets the replacement perform. Is the company likely to prevail in a breach claim against the original singer?
• Which statement about assignment and delegation is correct?
• In a cereal contract, the grocery chain sues for nonpayment after repudiation, and the cereal maker introduces the contract, admitting the terms. The grocery chain seeks extrinsic evidence about a prize in boxes. Which evidence is properly admissible?
• A maker of perfume asks a manufacturer to supply 1,000 readily available glass bottles for retail sales. The manufacturer ships within five days. The perfumer pays $2.50 per bottle before receiving an invoice; the invoice later shows $3.50 per bottle. A court determines the reasonable price at delivery was $3.25 per bottle. What amount must be paid?
• An ex-husband purchases an annuity to be paid for the life of his ex-wife. The ex-wife dies before any payments are made. The ex-husband sues to rescind. The risk of death is on the payer. What is the result?
• Under a firm offer governed by the UCC, a signed offer to keep an offer open for seven days is revocable only if the offeree delays in accepting. If the signature on the offer is only initials, is the offer still binding for seven days?
• A mining company contracted with a railroad to transport 10,000 tons of coal for $100,000. The railroad stated it would not be liable for late shipments. The railroad knew the coal was to be delivered to a power company on June 1, and industry custom tied late delivery to a $1 per ton per day reduction in price to the power company. The coal arrived June 11, causing $100,000 in lost revenue. The company sues for breach of contract. Should the mining company prevail?
• Explain impracticability and how it affects performance.
• Under the swing set email conversation, does the email exchange constitute a binding contract?
• Under the Statute of Frauds, which contracts require a writing?
• Define a condition precedent and a concurrent condition.
• What is an illusory promise and why is it not enforceable?
• During a four-month promotional period, a nail salon offers $100 to any customer who purchases a new long-lasting manicure if the manicure does not stay intact for an entire month. A customer purchases within the period and the manicure lasts three weeks. Can the customer collect the $100?
• A tenant improves a cabin and the contractor is unpaid for $10,000 worth of work. The tenant vacates three months early. What action is proper to recover the value of the improvements?
• A wheat farmer hires an agricultural services company to provide five workers for five days. The company’s workers go on strike on day five; the strike ends and they work the full five days. The farmer refuses to pay, claiming the delay excuses performance. Is the farmer’s obligation to pay excused?
• In a yacht sale, a first buyer is told, on November 20, that the owner would sell for $50,000 if paid by November 20. A second buyer alters, accepts later for $60,000. The owner then sells to the second buyer. Can the first buyer sue for breach?
• An owner entrusts a fur coat to a furrier for storage. The furrier's employee, thinking the coat is for sale, sells it to a customer. The owner sues the customer for recovery of the coat. Which statement is correct?
• An artist is hired to paint a portrait using a live-model method that requires two months of daily sessions. The subject dies after one week. Is the artist required to complete the painting?
• A student inherits land and, needing cash, sells it to a rancher for 80 percent of fair market value after the rancher offers a low price. The student accepts to repair his car for class. Which legal concept best fits this situation?
• Which of the following is a typical exception to the Statute of Frauds for contract formation?
• What is substantial performance and when does it apply?
• What is the effect of assignment on the obligor's liability?
• If a party makes a counteroffer, what happens to the original offer and can it be accepted later?
• A caterer contracts with a farmer for three dozen eggs. The eggs delivered are 20 white and 16 speckled; the caterer rejects due to color mismatch. The caterer stores the eggs for a week, then gives them to a friend after the farmer fails to respond. If the farmer brings a contract claim for the price of the eggs given away, will the farmer prevail?
• A rug maker contracts for 2,000 spools of yarn per month for four years at $10 per spool. After two years, the supplier sends 2,000 spools with 90% wool and 10% synthetic; the rug maker pays $15,000 with a note stating payment in full for the shipment, but $5,000 less due to the synthetic fiber. The supplier deposits the check and sues for the remaining $5,000 months later. What effect does the check have on the contract for that shipment?
• A coach requests 20 red jerseys to be shipped promptly. The supplier accepts the offer on May 15, but on May 16 ships 20 blue jerseys as an accommodation. The coach receives the blue jerseys on May 18 and the acceptance letter on May 19. On May 20, which statement best describes the parties’ rights?
• Under a unilateral contract, what constitutes acceptance?
• In the butcher scenario, the $2,000 rental cost is best described as which type of damages?
• What is the key distinction between the UCC Perfect Tender Rule and common-law substantial performance?
• In the swing set case, the woodworker's performance illustrates acceptance of which type of contract?
• A fur coat owner entrusts a furrier with the coat for storage. The furrier, in the ordinary course of business, sells the coat to a buyer in good faith. The owner sues the buyer for recovery. What is the likely outcome?
• Why did the butcher incur the $2,000 rental cost in the June window?
• A nature magazine advertised a contest offering $1,000 to subscribers who submit a photo meeting technical specifications and intended for the May cover. A subscriber submitted a qualifying photo on March 15. The May issue used a different photo due to an ecological disaster, and the June issue used the subscriber's photo, but the magazine refused to pay $1,000 because the photo was not used on the May cover. Is the subscriber likely to prevail?
• On October 1, a store and a manufacturer agree by telephone to buy 50–100 pairs of running shoes at $40, with delivery in 60 days. The manufacturer later delivers 100 pairs, and the store repudiates. Can the manufacturer enforce a contract?
• What is the effect of an outright rejection and how is a counteroffer treated?
• In a fully integrated contract, can extrinsic evidence ever be admitted to interpret terms or prove fraud or mistake?
• A contract for a service is not marked with a time-is-of-the-essence clause. A party delays due to a strike but ultimately performs. The non-breaching party argues performance was delayed and the contract is excused. Which statement is correct?
• For a party-kit contract, a company agreed to deliver 500 kits to the buyer by November 1. Selections of kit types and quantities were to be made by October 15, but neither side made selections by that date. On October 16, the company claims breach and refuses to ship. On October 17, the store tells the company its selections, but the company declines to ship. The company had surplus and could fill any combination. Which statement is true?
• What are the main exceptions to the Parol Evidence Rule, particularly regarding interpretation and course of performance?
• What damages are recoverable for breach of contract at common law?
• Under the UCC, when is a contract for the sale of goods enforceable despite the Statute of Frauds?
• Which of the following best describes the contract formation illustrated by the owner-manager-assistant bike situation?
• Which of the following is an element of misrepresentation in contract formation?
• To enforce an accord and satisfaction, there must be a genuine dispute over the amount. Which option reflects this requirement?
• In a contract where a homeowner hires a landscaper for $10,000 upon completion of specified projects, the landscaper completes the work but the homeowner later refuses payment because a tree was not trimmed. The landscaper then demands $10,500 to finish the missing task, and the homeowner agrees. After completion, the homeowner pays $10,000 and refuses the extra $500. The landscaper sues for breach. Is the landscaper likely to succeed?
• Under the parol evidence rule, an integration clause generally bars the admission of prior oral terms to modify a written contract. Which statement best reflects this rule?
• During a divorce settlement, an ex-husband purchases an annuity to be paid quarterly for the life of his ex-wife. The wife learns she is terminally ill and dies two months later, before any payments are made. The ex-husband sues to rescind the annuity. Will he succeed?
• A collector agreed to sell his collection of authentic extras' costumes to a costume store for $10,000, payable one month after delivery via a third-party carrier. The costumes suffered minor water damage in transit and the store rejected the collection. The collector found another buyer willing to pay the original price. Before the collector retrieved the collection, the store sold and delivered the costumes to a theater company who knowingly accepted them. What is the measure of damages for conversion?
• At a rodeo, a hat maker agrees to deliver 500 hats for $75 each and to pay a tannery owner a portion of the price for a prior debt. The hat maker later modifies the agreement to no longer pay the tannery owner, but the tannery owner does not know of the modification. The brother of the hat maker informs the tannery owner after the modification. Is the tannery owner bound by the modification?
• In the Battle of the Forms under the UCC, when both parties are merchants, how are additional terms treated in acceptance?
• What distinguishes an invitation to negotiate from an offer?
• At an auction of construction equipment, the backhoe is put up for sale. The auctioneer, acting with a secret signal from the contractor, states that the backhoe is being removed from the auction just before the gavel. There is no indication whether the sale is with or without reserve. The highest bidder sues the contractor. How should the court rule?
• A car salesman proclaims, 'Free set of wheels to the next person who buys a car from me!' A shopper believes it's a two-for-one deal and buys a car for his son. The salesman then says he's never offering a free car, and cancels the sale of the first car as a consolation. Is there a binding contract for a free car?
• A bed and breakfast hires an artist to paint murals in five bedrooms. Payment is due upon satisfactory completion of all five rooms. The owner approves the first three rooms but asks for a different color palette for the remaining two. The artist refuses and terminates the contract. What is the measure of damages?
• Under the UCC, when the price is not agreed upon in a contract for the sale of goods, which statement is correct?
• During negotiations, two parties exchange emails that mirror one another with an offer and a simultaneous acceptance. Is there a binding contract formed by the simultaneous emails?
• Which statement best describes frustration of purpose in contract law?
• Under the Battle of the Forms, what does the knock-out rule do when terms conflict between forms?
• Under the Uniform Commercial Code, if a contract for the sale of goods lacks a price term, the price is determined by what standard?
• A baker and a bride entered into a contract to bake a wedding cake for $2,500, with a clause that Baker's satisfaction of Bride's aesthetic expectations is an express condition on Bride's performance. The cake included caterpillars, causing Bride to refuse payment due to aversion. Should the court require Bride to pay?
• An independent trucker and a manufacturer contract for the delivery of a farming implement. The trucker picked up the implement but drove 100 miles out of the way to pick up another item before delivering to the farmer. The manufacturer, unaware of the detour, refuses to pay. Who has breached the contract?
• Under UCC, which statement about open terms is true?
• Which principle allows a party to enforce a promise to pay even without new consideration when the promise was relied upon to the promisee’s detriment?
• Which of the following is NOT an element of common-law fraud in contract formation?
• A builder ordered 100 squares of shingles for installation on homes to be built at $120 per square. Delivery was required no later than noon Monday; the truck arrived at 1:00 p.m. Monday, and the builder rejected the shipment. The store resold the shingles at $110 per square, and it would have earned a profit of $3,000 had the builder accepted. If the store sues for breach, how much can the store recover?
• In common-law contract damages, what is the obligation of the non-breaching party regarding mitigation?
• Which statement best describes the effect of a merger clause on proposed oral modifications to a contract?
• Under the UCC, when a seller breaches, what is the purpose of the cover remedy?
• A jeweler and a goldsmith signed a written agreement: For $3,000, the goldsmith shall sell to the jeweler a size six gold ring setting that the jeweler shall select from only the goldsmith's white gold ring designs. The agreement did not address other terms. The jeweler claims the goldsmith orally agreed to broaden choices to rose gold designs and to include $1,000 in earrings as an incentive. The goldsmith refused. If the jeweler sues, what evidence should the court admit?
• In the mining case, what is the effect of the late-delivery clause on damages?
• A wholesaler sends a fax offering to sell up to 1,000 units at $7.50 each, a 25% discount off the $10 price, open for 7 days, with a signature that is not fully handwritten but initials are present. The wholesaler revokes on December 4. A retailer orders 1,000 units on December 5 at the discounted price. What is the value of the order placed by the retailer?
• A general contractor reviews bids and selects a bid from a young subcontractor, which is the lowest bid. After submitting his own bid, the subcontractor realizes he could have charged more and the general contractor’s bid is selected. The general contractor sues the subcontractor. The best basis for recovery is that the general contractor detrimentally relied on the subcontractor’s bid.
• In contract law, an option to renew generally requires what to be enforceable?
• How does a material breach affect the non-breaching party's performance obligations?
• Under the term FOB destination, when does risk of loss pass from seller to buyer?
• If a contract is fully integrated and a prior oral condition is offered to prove a condition precedent, which of the following is most likely true?
• Under contract law, a third party who is an intended beneficiary may sue to enforce the contract. Is that true?
• Which statement about misrepresentation is not an element?
• What was the reason the seller could not deliver by the June 1 closing in the building scenario?
• What type of evidence best explains industry practice used to interpret timing obligations for deliveries in a contract?
• Define quantum meruit and when it applies.
• A new florist placed a written order for $15,000 worth of fresh flowers and arranged delivery via a national service. The wholesaler required $5,000 in advance and the remaining $10,000 within 20 days after delivery. The flowers were damaged in transit due to temperature control failure, and the florist rejected the flowers. The wholesaler sued for the remaining $10,000; the florist countersued for the return of the $5,000. Should the florist recover $5,000?