Contract Formation

Question 1

Under the common law, what is required for a contract to be modified:

Answer 1

modification must be supported by new consideration UNLESS modification is due to unanticipated circumstances when contract was made; and (2) it is fair and equitable

Question 2

What is required to modify a UCC contract?

Answer 2

good faith promise of new and different terms

Question 3

Under the UCC when may a buyer reject an installment?

Answer 3

If the goods are non-conforming and the non-conformity substantially impairs that installment and cannot be cured

Question 4

Does the perfect tender rule apply to installment contracts?

Answer 4

No

Question 5

A buyer who has multiple, separate contracts with one seller….

Answer 5

may seek assurances on either contract where the seller has expressed it will be unable to perform on what of the contracts

Question 6

When a party demands assurances, what is the effect?

Answer 6

he may suspend performance if commercially reasonable and failure to respond within a reasonable time may be treated as a breach