Contracts MBE

Question 1

Steps in Analyzing Contracts Claims

Answer 1

Law
Formation
Defenses
Terms
Excuses
Remedies
Terms 

(love for D tricked even Re Totally)

Question 2

UCC governs

Common law governs

Mixed Contracts:

Answer 2

UCC: sales of goods –> movable at time of identification of contract exception money

Common law–> all other contracts

Mixed Contracts: predominant purpose of contract determines which governs

Question 3

Formation Requirements

Answer 3

Mutual assent (offer and acceptance)
Consideration
No defenses

Question 4

Offer?

Answer 4

Manifest intent to enter into K
definite or reasonably certain terms

communicated to identified offeree

Question 5

Termination of Offer

Answer 5

Before acceptance

Rejection or counteroffer
Lapse of time
Revocation
Death/incapacity

(BAR LC RD)

Question 6

Revocation

Answer 6

any time before acceptance
unambigious conduct
indicating unwillingness or uninability to contract

Question 7

indirect revocation

Answer 7

indirect revocation; definite action inconsisent with entering proposed contract K
offeree acquires reliable info of this

Question 8

Acceptance has different terms?
UCC standard
Common law standard

Answer 8

Mirror Image Rule (CL) – Acceptance must exactly
mirror the offer; any variations constitute a counteroffer.
UCC Exception – Acceptance DOES NOT have to
mirror the offer.

BUT, different or additional terms are included only if:
1) Both parties are merchants;
2) The term is not a material change;
3) Offer does not expressly limit acceptance to the
exact offer; AND
4) No objection was made within a reasonable
time.
*Material change = likely to cause hardship/surprise i.e.
disclaimer of warranties or arbitration clause).

Question 9

Modification
UCC
Common Law

Answer 9

Pre-Existing Duty Rule – Under the common law, past
performance or a pre-existing duty is NOT adequate
consideration.
− Exceptions: (a) an addition or change in
performance; OR (b) a fair and equitable
modification due to severe unanticipated
circumstances + contract isn’t fully performed by
either party.

UCC- no consideration is required for
contract modifications made in good faith.
− But must have a writing if: (a) it falls within the
Statute of Frauds; OR (b) the original contract
states that modifications must be made in
writing.

Question 10

merchant

Answer 10

regularly deals
goods sold
holds himself out
special knowledge or skills

Question 11

requirements real estate offers

Answer 11

identify
land
price terms

Question 12

requirements for sale of goods

Answer 12

quantity

Question 13

Contract removed from SOF LAND

Answer 13

Seller: convey to buyer
Buyer: part performance indicating parties contracted for sell of land
(payment, possession, valuable improvements)

Question 14

Judicial admission effect SOF

Answer 14

Party admits in pleadings or testimony there was an agreement

Question 15

Consideration

Answer 15

bargained for exchange of something of legal value

Question 16

SOF offer of employment

Answer 16

specify type of work done

Question 17

Option Contract

Answer 17

Irrevocable offer

consideration for promise
not to revoke
outstanding offer

Question 18

types of K

Answer 18

quasi K- formed by court to avoid
unjust enrichment

express; formed by langauge (express or written)

implied: formed by conduct

Question 19

unliateral

bilateral contract

Answer 19

unilateral contract may be accepted only by full performance. In contrast, an offer for a bilateral contract may be accepted either by a promise to perform or by the beginning of performance.
unilateral contract becomes irrevocable once performance has begun

Question 20

merchant firm offer

Answer 20

irrevocable offer
merchant offeror offers to buy or sell goods
signed writing that gives assurances
K will be held open for a specified period of time’

both parties dont have to be merchant