Missed MBE Questions Flashcards
Missed questions from the Qbank and Strategies & Tactics
State the rule triggered by the question
A plane crashed in State C, killing all 120 passengers on board. The deceased passengers were domiciled in States A, B, and C. The plane was owned by an airline incorporated in State A, headquartered in State B, and licensed to do business in State C. The plane’s manufacturer is incorporated, headquartered, and licensed to do business in State C.
The estates of the deceased passengers brought an action against the airline and the manufacturer in a State B federal court. The estates assert wrongful death claims on behalf of the deceased passengers to recover $120 million in damages. The airline and the manufacturer have moved to dismiss for lack of subject-matter jurisdiction.
Should the court grant the defendants’ motion?
A federal court has original subject-matter jurisdiction over an action in which minimal diversity of citizenship exists when the requirements of the Multiparty, Multiforum Trial Jurisdiction Act (MMTJA) are satisfied.
Contracts must be supported by consideration—ie, a bargained-for exchange of promises or performance—which requires each party to (1) perform or promise to perform an act that is not legally required or (2) refrain or promise to refrain from performing some legally permissible act.
State the rule triggered by the question
A private high school was in the market for new desks and chairs for its classrooms. It had inquired into the cost of acquiring 1,000 new desks and chairs from a particular vendor. On June 15, the vendor sent a signed letter to the private high school offering to sell 1,000 desks and chairs for $30,000. The letter stated that the private high school’s acceptance would be effective only if the vendor actually received it by June 25. On June 23, the private high school mailed its signed, written acceptance of the vendor’s offer. On June 24, the vendor, after concluding that the price it originally requested was too low, directly notified the private high school that it was revoking its offer. The vendor received the private high school’s acceptance on June 26.
Was an enforceable contract between the private high school and the vendor formed?
The mailbox rule does not apply if it is inconsistent with the offer’s terms, such as when the offer states that acceptance is effective only upon receipt.
State the legal rule or principle triggered by the question
A plaintiff brought a diversity action against a defendant in a federal court in State A to quiet title to a farm. The plaintiff attempted to serve the defendant with process through certified mail, but the letter was returned to the plaintiff marked “unclaimed.” The plaintiff attempted service through certified mail a second time, but the letter was returned to the plaintiff in the same fashion. The plaintiff did not attempt to contact the defendant again. At trial, the defendant did not appear and defend. As a result, the court entered a default judgment in the plaintiff’s favor.
Two months later, the defendant discovered the plaintiff on the farm and learned about the default judgment. The defendant immediately moved for relief from the default judgment in the federal court in State A on the ground that the plaintiff failed to provide him with adequate notice of the suit.
State A’s rules of procedure permit service of process by certified or ordinary mail.
Will the federal court likely grant the defendant’s motion for relief?
Notice, as required by due process, means that a defendant must be reasonably apprised of the pending suit and afforded an opportunity to present objections. So if the plaintiff knows the defendant did not receive notice through service of process, then the plaintiff must take additional reasonable steps to provide notice.
Notice the plaintiff did not take additional reasonable steps to provide notice
A retiree was known to walk her beloved dog around the neighborhood daily. One evening, she forgot to shut her gate, and her dog escaped. The retiree placed posters around the neighborhood stating, “Lost dog! $500 reward. No questions asked.”
The dog had wandered to a nearby store, and the store owner kept the dog and fed it for a few days. A customer saw the dog and told the store owner that it looked like the retiree’s dog. The store owner took the dog to the retiree’s home, and the dog was happily reunited with its owner. The store owner had not seen the posters and did not ask for the reward.
On the way back to the store, the store owner saw one of the posters and called the retiree to inquire about the reward. The retiree refused to pay the reward.
What type of offer did retiree create?
Who could accept the offer?
What legal rule is triggered?
The reward is a unilateral offer to contract, acceptance is valid only through full performance.
Since store owner didn’t know about the offer he couldn’t accept it. Therefore, there was no mutual assent, no contract, and no breach.
Rule: Offers to form unilateral or bilateral contracts must be reasonably communicated to the offeree, and the offeree must be aware of the offer to accept it. Otherwise, there can be no mutual assent and therefore no contract.
A woman was driving home from a crowded shopping mall when a passenger van ran through a stoplight at great speed and hit the woman’s car. A physician who witnessed the incident pulled over to the woman’s car and saw that her shoulder was seriously injured. The physician told the woman he was a licensed surgeon before helping her out of the car. The woman was delirious and too shaken to speak as the physician removed several glass fragments from her shoulder and applied temporary sutures to close the wound. When the physician finished, he took the woman’s contact information and promised to check on her condition later.
If the physician subsequently sends the woman a bill for his services, will she be obligated to pay it?
Yes!
- Courts will construct an implied-in-law **(“quasi”) contract **where the plaintiff has conferred a measurable benefit on the defendant without gratuitous intent and it would be unfair to let the defendant retain the benefit without compensating the plaintiff.
- Unfair retention of a benefit arises when (1) the defendant had an opportunity to decline the benefit but knowingly accepted it or (2) the plaintiff had a reasonable excuse for not giving the defendant such opportunity—often because of an emergency. This allows the plaintiff in a quasi-contract action to recover restitutionary damages equal to the reasonable value of the benefit conferred.
Can a promise to surrender a claim of defense constitute adequate consideration?
If so what are the requirements?
Yes!
A promise to surrender a claim or defense constitutes consideration for a settlement agreement so long as (1) the claim or defense is valid or subject to a good-faith dispute or (2) the surrendering party believes that the claim or defense may be valid.
What legal principle is triggered by the question?
A shop owner faxed the following signed message to his long-time widget supplier: “Urgently need blue widgets. Ship immediately three gross at your current list price of $600.” Upon receipt of the fax, the supplier shipped three gross of red widgets to the shop owner and faxed to him the following message: “Temporarily out of blue. In case red will help, am shipping three gross at the same price. Hope you can use them.”
Upon the shop owner’s timely receipt of both the shipment and the supplier’s fax, which of the following best describes the rights and duties of the shop owner and the supplier?
Under the UCC, a seller can accept an offer to buy goods for prompt or immediate shipment by promising to ship or actually shipping conforming goods. However, shipping nonconforming goods serves as both a rejection and counteroffer if the seller notifies the buyer that the shipment was merely an accommodation.
The shop owner may accept the shipment, in which case he must pay the supplier the list price, or he may reject the shipment and he has no further rights against the supplier.
Termination of offer before acceptance
Once an offer has been made, a binding contract will be formed if the offer is accepted before it terminates. Offers can be terminated by revocation, rejection, lapse, or operation of law (see table above). An offer terminates by operation of law when, for example, the subject matter of the offer is destroyed.
Termination of offer before acceptance
Offeror’s revocation
Offeror communicates revocation directly to offeree
Offeree learns information from reliable source that reasonably indicates offer was revoked (eg, house sold to another buyer)
Offeree’s rejection
Offeree communicates rejection directly to offeror
Offeree’s counteroffer serves as rejection & new offer*
Lapse
Time period specified in offer expires
After reasonable time if no time period specified in offer
By law
Either party dies or is adjudicated insane
Subject matter of offer is destroyed or becomes illegal
What is the function of a merger clause under the UCC?
The UCC, which applies to contracts for the sale of goods (e.g., comic books), presumes that a contract is partially integrated. However, that presumption goes away when the writing contains a merger clause—i.e., a clause that declares the written contract to be the complete and final agreement between the parties. The written contract will instead be deemed completely integrated.
A written contract is completely integrated if it contains a merger clause—i.e., a clause that declares the written contract to be the complete and final agreement between the parties. As a result, the parol evidence rule bars the admission of prior or contemporaneous agreements that modify or contradict the terms of the writing.
A written contract is completely integrated if it contains a merger clause—i.e., a clause that declares the written contract to be the complete and final agreement between the parties. As a result, the parol evidence rule bars the admission of prior or contemporaneous agreements that modify or contradict the terms of the writing.
under the UCC When is performance due on an installment contract?
Under the UCC, an installment contract is defined as a contract in which the goods are to be delivered in multiple shipments, and each shipment is to be separately accepted by the buyer. Payment by the buyer is due upon each delivery unless the price cannot be apportioned.
What happens when a party’s performance of a condition precedent is prevented?
A condition precedent is an explicit contract term requiring a future event to occur before a party becomes obligated to perform. However, under the doctrine of prevention, a condition’s nonoccurrence is excused when the party whose duty to perform is subject to the condition wrongfully prevents or interferes with the occurrence of that condition.
How can an offer be revived?
An offer cannot be accepted after it terminates (e.g., is rejected by the offeree). But the offer can be revived if the offeror conveys that it is still open, which creates a renewed opportunity for the offeree to accept.
What is an exception to the parol evidence rule when it comes to raising defenses against the formation of a contract? Name one specific defense and describe it.
the parol evidence rule does not apply to evidence offered to raise a defense to contract formation. Misrepresentation is one such defense, which arises when a contracting party made an untrue assertion of fact.
To form a contract, an offer must be accepted before it terminates. An offer will terminate if, for example, the offeree rejects it by clearly conveying that he/she does not intend to accept the offer OR by making a counteroffer. Once the offer has terminated, it cannot be accepted. But the offer can be revived if the offeror conveys that it is still open. This creates a renewed opportunity for acceptance by the offeree. If the offeree accepts the revived offer, then a binding contract is formed.
What are the exceptions to the parol evidence rule?
Evidence of prior or contemporaneous oral or written agreement is admissible to establish:
- whether writing is integrated and, if so, completely or partially
- meaning of ambiguous term
- defense to formation or enforcement (eg, fraud, duress, mistake)
- ground for granting or denying remedy (eg, rescission, reformation)
- subsequent contract modifications
- condition precedent to effectiveness
Remember: The parol evidence rule does not apply to evidence offered to raise a defense to contract formation.
Discuss contract formation under the common law vs. the UCC
Contract formation under the common law requires an offer with definite terms and an acceptance with knowledge of that offer. But these requirements are relaxed by the UCC, which governs contracts for the sale of goods (e.g., a ring). Under the UCC, a contract is formed if the parties intended to contract and there is a reasonably certain basis for giving a remedy. The contract may be made in any manner sufficient to show agreement—even if the moment of its making is undetermined.
What are a buyer’s duty of good faith & fair dealing under requirements contract?
Article 2 of the Uniform Commercial Code (UCC) governs contracts for the sale of goods. Under the UCC, a requirements contract is a contract for the sale of as many goods as the buyer requires during a specified period. This creates an exclusive agreement between the buyer and the seller. As a result, the duty of good faith and fair dealing implied in every contract requires the buyer to purchase goods from the seller only. A failure to do so violates that duty and is a breach of contract.
Auctions
During a reserve auction, the auctioneer may withdraw goods from auction prior to completion of the sale (e.g., before the auctioneer’s hammer falls). At a no-reserve auction, goods generally cannot be withdrawn after the auctioneer calls for bids.
accord and satisfaction
If a debt is disputed in good faith, then the debtor can offer to satisfy the debt by giving the creditor a check with a conspicuous “payment in full” notation. But if the debt is certain and undisputed, then it cannot be satisfied by a check for a lesser amount—even if the creditor cashes the check.
Beneficiaries to a contract
Intended beneficiaries receive a direct benefit from a contract because the contracting parties so intended, while incidental beneficiaries receive an indirect benefit from a contract even though there was no contractual intent to benefit them. Only intended (not incidental) beneficiaries can sue to enforce the contract.