CONTRACTS & SALES

Question 1

Termination of Offer: DETRIMENTAL RELIANCE

Answer 1

In North Carolina, the doctrine of promissory estoppel has been recognized for awarding defensive relief only. CMR 8, 2c

Question 2

Termination of Offer: PART PERFORMANCE IN TRUE UNILATERAL CONTRACT OFFERS

Answer 2

In North Carolina, an offeror can revoke an offer to form a unilateral contract after the offeree begins performance. Offeree can recover expenses, but not lost profits. CMR 8d

Question 3

Termination of Offer: COUNTEROFFER AS REJECTION

Answer 3

In North Carolina, to create a counteroffer, the change in the original offer must be a MATERIAL change. CMR 9, 1b

Question 4

Acceptance: ACCEPTANCE MUST BE UNEQUIVOCAL

Answer 4

In North Carolina, acceptance is valid where additional terms merely relate to the ultimate performance of the contract, rather than impose a condition on the making of the contract. CMR 12, 4c

Question 5

Consideration: PRE-EXISTING LEGAL DUTY EXCEPTION

Answer 5

In North Carolina, a non-compete clause imposed on a current employee of many years must be supported by a new benefit to satisfy the requirement of consideration. CMR 17c1

Question 6

Consideration: PROMISSORY ESTOPPEL or DETRIMENTAL RELIANCE

Answer 6

In North Carolina, promissory estoppel is not recognized as a substitute for consideration to justify an award of affirmative relief. It is permitted only as a defensive argument in actions for breach of contract. CMR19

Question 7

Consideration: EFFECT OF A SEALED INSTRUMENT

Answer 7

In North Carolina, a seal provides consideration, or raises a presumption of consideration that must be rebutted by clear and convincing evidence. CMR 19, after D

Question 8

Defenses to Enforcement: Statute of Frauds: INTEREST IN LAND

Answer 8

In North Carolina, leases for more than THREE YEARS must be in writing. CMR 24d

Question 9

Defenses to Enforcement: Statute of Frauds: PERFORMANCE NOT WITHIN ONE YEAR

Answer 9

In North Carolina, there is NO ONE YEAR PRONG in the Statute of Frauds. CMR 24e

Question 10

Defenses to the Formation of a Contract: WHO ARE MERCHANTS?

Answer 10

In North Carolina, Farmers are deemed to be merchants. CMR 25f2

Question 11

Defenses to the Formation of a Contract: EFFECT OF AN INFANT’S CONTRACT

Answer 11

In North Carolina, Coogan’s Law provides that a contract with a minor artist, actor, creator of intellectual property, athlete, or performing extra may not be disaffirmed if the employer has obtained prior court approval of the contract. Employer must set aside 15% of the minor’s gross income in trust. CMR 21,1a

Question 12

Determining the Terms of a Contract: (Between Merchants: Acceptance Containing Additional Terms): ARBITRATION CLAUSE APPEARING FOR FIRST TIME IN ACCEPTANCE

Answer 12

In North Carolina, an arbitration clause appearing for the first time in the acceptance materially alters the terms of the offer and does not become part of the contract unless expressly accepted by the offeror. CMR 14b

Question 13

Determining the Terms of a Contract: SELLER’S WARANTY LIABILITY

Answer 13

In North Carolina, the seller’s warranty liability extends to any natural person who: is in the family or household of the buyer, is a guest in the buyer’s home, if it is reasonable to expect that such person may use, consume, or be affected by the goods; and suffers personal injury because of a breach of warranty. CMR 39g

Question 14

Determining the Terms of a Contract: PRODUCTS LIABILITY

Answer 14

In North Carolina, strict liability has not been adopted in tort. Chapter 99B of the General Statutes deals with the sale of defective products. CMR 39, after g

Question 15

Remedies: CONSEQUENTIAL DAMAGES FOR MENTAL ANGUISH

Answer 15

In North Carolina, courts will award compensatory damages for mental anguish where the contractual duty is necessarily coupled with matters of mental concern. CMR 65a3

Question 16

Remedies: LOST PROFITS

Answer 16

In North Carolina, lost profits can be recovered if: it is reasonably certain that such profits would have been realized except for the breach; such profits can be measured with reasonable certainty; and a potential loss of profits was foreseeable by the parties at the time the contract was made. CMR 68b

Question 17

Statute of Limitations: CONTRACTS GENERALLY

Answer 17

In North Carolina, the statute of limitations for contracts in general is THREE YEARS.

Question 18

Statute of Limitations: CONTRACTS FOR SALE OF GOODS

Answer 18

In North Carolina, the statute of limitations for contracts for sale of goods is FOUR YEARS.

Question 19

Statute of Limitations: CONTRACTS UNDER SEAL

Answer 19

In North Carolina, the statute of limitations on a sealed instrument is TEN YEARS.