NY BAR REVIEW CONTRACTS LAW COURSE

Question 1

contract entered into under a mutual mistake of fact by the parties is valid, void, or voidable?

Answer 1

VOIDABLE

Question 2

mutual mistake must be so _______, that it goes to the ______ of the agreement.

Answer 2

material.

foundation.

Question 3

mutual mistake MUST exist when?

Answer 3

at time contract is entered into

Question 4

mutual mistake must be what?

Answer 4

substantial

Question 5

in mutual mistake, any court ordered relief is reserved only for _______ situations

Answer 5

exceptional

Question 6

a unilateral mistake is insufficient basis for __________ in the absence of ___________.

Answer 6

reformation or rescission.

fraud, duress, or similar inequitable conduct.

Question 7

a person who is under 18 yo is _________

Answer 7

infant

Question 8

contract of an infant is binding on the other contracting party so long as what?

Answer 8

infant does not elect to disaffirm it during their infancy or within a reasonable time after attaining majority

Question 9

exceptions to dissaffirmance of infant contracts are:

Answer 9

contracts for necessaries and agreements to enter into a binding contract for a loan with a bank

Question 10

determination of unconscionability is a matter of ___________ for who to decide?

Answer 10

law.

court.

Question 11

what does unconscionability require?

Answer 11

showing of absence of meaningful choice on part of one of the parties together with contract terms which are unreasonably favorable to the other party. party must demonstrate that contract was both procedurally and substantively unconscionable when made.

Question 12

substantive aspect

Answer 12

considers whether the contract terms are unreasonably favorable to one party.

Question 13

procedural aspect

Answer 13

looks to evidence of contract formation process

Question 14

to determine whether theres been procedural unconscionability in contract formation process, court MUST assess factors:

Answer 14

size and commercial setting of transaction.
whether there was lack of meaningful choice by party claiming unconscionability.
experience and education of party claiming unconscionability.
whether there was a disparity in bargaining power.

Question 15

agreements that are contrary to public policy are generally what?

Answer 15

unenforceable

Question 16

one is prohibited from ________ in conduct of any business, trade, commerce, or furnishing any service.

Answer 16

deceptive acts or practices

Question 17

a plaintiff must allege that the defendant is engaging in what?

Answer 17

consumer oriented conduct that is materially deceptive or misleading and as a result the plaintiff has been injured.

Question 18

what are deceptive acts?

Answer 18

those likely to mislead a reasonable consumer acting reasonably under the circumstances

Question 19

what does usury statute provide for?

Answer 19

loans carrying annual interest rates of more than 16% are prohibited, subject to limited exceptions

Question 20

contractual exemptions from liability for negligence are _________

Answer 20

disfavored

Question 21

a landlord cannot exempt himself from what?

Answer 21

liability for negligence in operation or maintenance of its premises, regardless of whether premises is residential or commercial.

Question 22

where there is liability to a third party, statute does not preclude what?

Answer 22

indemnification provision in a commercial lease negotiated at arm’s length between two sophisticated parties

Question 23

an agreement related to construction, alteration, repair, maintenance of a building that purports to exempt owners/contractors from liability caused by their own negligence is ___________

Answer 23

against public policy and VOID

Question 24

agreements exempting building service or maintenance contractors from liability for negligence are _______

Answer 24

VOID and unenforceable

Question 25

businesses providing garages, parking lots, similar places for housing, storage, parking, repair, or servicing of vehicles may NOT what?

Answer 25

exempt themselves from liability for damages for injury to persons or property resulting from their negligence in the operation of vehicles or in conduct or maintenance of such business

Question 26

owners or operators of pools, gymnasiums, places of amusement or recreation may NOT what?

Answer 26

exempt themselves from liability for damages caused by THEIR negligence

Question 27

an agreement to modify or discharge an obligation shall NOT be invalid for _______

Answer 27

lack of consideration if expressed in writing signed by party against whom enforcement is sought

Question 28

promise based on past consideration is enforceable if what?

Answer 28

there is a writing signed by the party to be bound, and the consideration is expressed in the writing and is proved to have been given or performed and would be a valid consideration but for the time when it was given or performed

Question 29

consideration is NOT required when?

Answer 29

for any assignment if it is in writing and signed by the assignor

Question 30

when an offer to enter into a contract is made in a writing signed by offeror stating the offer is irrevocable during stated period of time, offer is NOT what?

Answer 30

revocable during such period bc of absence of consideration. if such writing states the offer is irrevocable but doesn’t state any period of time of irrevocability, offer is irrevocable for a reasonable time.

Question 31

statute of frauds in general obligations law - generally, every agreement, promise, undertaking is VOID, unless it is in writing and signed by the party to be charged if it is what?

Answer 31

by its terms, not to be perofrmed within one year from making thereof of performance of which is not to be completed before end of lifetime.
special promise toanswer for thedebt, default, or miscarriage of another.
made in consideration of marriage, except mututal promises to marry.
subsequent or new promise to pay a debt discharged in bankruptcy.
contract to pay compensation for services rendered in negotiating a loan or in negotiating the purchase, sale, exchange, renting, or leasing of any real estate or interest therein.
signed writing is NOT required if contract is to pay compensation to an auctioneer, an atty at law, duly licensed real estate broker or real estate salesman.

Question 32

estate or interest in real property, except for lease not exceeding one year, or trust or power over or concerning real property, cannot be created, granted, assigned, surrendered, or declared unless how?

Answer 32

by act or operation of law, or by a deed or conveyance in writing, signed by person creating, granting, assigning, surrendering, or declaring the same, or by lawful agent, authorized by writing to do so.

Question 33

contract for lease of real property for more than one year, or for sale of real property or interest therein, is VOID, unless what?

Answer 33

contract is in writing , signed by party to be charged.

Question 34

contract to devise real property or establish trust of real property, or any interest in or right with reference to real property, is VOID, unless what?

Answer 34

contract is in writing and signed by the party to be charged.

Question 35

courts MAY compel specific performance when?

Answer 35

in cases of part performance

Question 36

state technology law provides that use of an electronic signature is deemed as what?

Answer 36

having same validity and effect as use of a signature affixed by hand

Question 37

party seeking to enforce a contract as third party beneficiary MUST establish what?

Answer 37

existence of valid contract bw other parties.
that contract was intended for its benefit.
and -
that benefit was direct rather than incidental.

Question 38

define intended beneficiary

Answer 38

if recognition of aright to performance in the beneficiary is appropriate to effectuate intention of parties and either performance of promise will satisfy an obligation of promisee to pay money to beneficiary or circumstances indicate that promisee intends to give beneficiary benefit of promised performance

Question 39

define third party

Answer 39

an intended beneficiary where anticipated benefit is sufficiently immediate rather than incidental, to indicate assumption by contracting parties of a duty to compensate third party if benefit is lost. incidental beneficiary is beneficiary who is NOT an intended beneficiary

Question 40

intention to benefit from third party MUST be derived from what?

Answer 40

contract as a whole

Question 41

where performance is rendered directly to third party, it is presumed that third party is what?

Answer 41

an intended beneficiary of the contract

Question 42

define constructive trust

Answer 42

an equitable remedy and its purpose is prevention of unjust enrichment.

Question 43

unjust enrichment does NOT require what?

Answer 43

performance of any wrongful act by the one enriched

Question 44

generally four elements for a constructive trust:

Answer 44

confidential or fiduciary relationship.
promise, express or implied.
transfer or subject res made in reliance on that promise.
unjust enrichment.

Question 45

the constructive trust doctrine is NOT rigidly limited and the absence of any one factor will NOT itself defeat the imposition of what?

Answer 45

constructive trust when otherwise required by equity

Question 46

what is required, generally, is that a party hold property under such circumstances that :

Answer 46

in equity and good conscience he ought not to retain it

Question 47

define employment at will doctrine

Answer 47

where an employment is for an indefinite term, it is presumed to be a hiring at will which may be freely terminated by either party at any time for any reason or even no reason

Question 48

NY does NOT recognize a claim for ___________ of an at will employee

Answer 48

wrongful discharge

Question 49

what are the exceptions to the at will doctrine?

Answer 49

if assurances of job security are made by employer, coupled with express provisions in an employee manual limiting an employers ability to terminate at will, and employee relies on these assurances, a contract may be implied.

Question 50

court of appeals, re at will doctrine, held that there is an implied duty of _______ on part of employer which limits its ability to __________an employee

Answer 50

good faith.
terminate.
applies only in the field of LAW PRACTICE.

Question 51

generally, when parties set agreement in clear, complete document, their writing is enforced according to __________

Answer 51

its terms

Question 52

evidence outside four corners of document as to what was really intended but unstated or misstated is generally what?

Answer 52

inadmissible to add or vary the writing.

Question 53

extrinsic and parol evidence is NOT admissible to:

Answer 53

create an ambiguity in a written agreement which is complete and unambiguous on its face.

Question 54

whether a writing is ambiguous is a question of _________ to be resolved by __________

Answer 54

law.

courts.