Contracts and Sales

Question 1

Governing Law

% out of exams tested: 55%

Answer 1

Issue: Whether the agreement between [Molly and Ted], if formed, would be governed by the common law or the UCC.

Rule: The common law governs all contracts other than those for the sale of goods.

Question 2

Contract Formation

% out of exams tested: 40%

Answer 2

Issue: Whether the agreement between [Molly and Ted] is a valid contract.

Rule: To form a contract there must be mutual assent (i.e., an offer and acceptance) and consideration.

Question 3

Contract Formation:

Offer

Answer 3

An offer is an expression of willingness to enter into a contract with definite and certain terms communicated to an offeree.

• [The fact that an offer gives the offeree a choice of terms does not make it too uncertain. When the offeree accepts, the terms of the offer will be certain.]

Question 4

Contract Formation:

Acceptance

Answer 4

An acceptance is a manifestation of assent to the terms of the offer. Teh common law requires unequivocal acceptance of every term of the offer. [At common law, this is known as the Mirror Image Rule.] Any different or additional terms in the acceptance make the response a rejection and counteroffer.