Missed Exam Questions

Question 1

Contract formation require mutual assent, which occurs when both parties do what?

Answer 1

Objectively convey their assent to enter a binding agreement.

A resulting K cannot be rescinded due to one party’s secret intent not to be bound.

Question 2

Rescission is available due to mutual mistake if:

Answer 2

1. the mistake relates back to a basic assumption of the K.
2. the mistake materially affects the agreed-upon exchange of performances,
   AND
3. the adversely affected party did not assume the risk of the mistake.

the race horse with a congenital heart defect.

Question 3

What is the common law mirror image rule?

Answer 3

An acceptance must mirror the terms of the offer.

A purported acceptance that contains different or additional terms acts as both a rejection and counter offer.

Question 4

Under the UCC, a transaction between merchants satisfies the SOF as to both parties if:

Answer 4

1. one party send a written confirmation that satisfies the SOF
   AND
2. the other party does not object in writing within 10 days.