MBE Contracts and Sales Flashcards
(13 cards)
To which of the following does Article 2 of the Uniform Commercial Code (UCC) apply?
A. A contract to install a heater
B. An agreement to sell land
C. The purchase of five pencils from a friend
D. Employment agreement to mow a lawn
C. The purchase of five pencils from a friend
For a communication to be an offer, the communication must do which of the following?
A. Induce a willingness by the offeree to accept the offer
B. Create the power of acceptance in the offeror
C. Manifest the offeror’s willingness to enter into a contract
D. Reveal the offeror’s subjective intent
C. Manifest the offeror’s willingness to enter into a contract
Regarding termination of an offer, which of the following statements is FALSE?
A. If the offer does not specify a termination date, the offeree retains the power of acceptance indefinitely.
B. Rejection of the offer by the offeree terminates the offer.
C. An offeror can revive a terminated offer.
D. The death of the offeror can terminate the offer.
A. If the offer does not specify a termination date, the offeree retains the power of acceptance indefinitely.
When an offeree begins performance of a unilateral contract, which of the following statements is TRUE?
A. The offeror can revoke the offer.
B. The offeror need not give the offeree a reasonable time to complete performance of the contract.
C. The offeror cannot require the offeree to complete performance of the contract.
D. A contract has been formed.
C. The offeror cannot require the offeree to complete performance of the contract.
To establish the defense of misunderstanding, which of the following is NOT required?
A. The parties use a material term that is open to two or more reasonable interpretations.
B. Each party attaches a different meaning to the term.
C. Neither party knows or has reason to know of the confusion.
D. One of the parties has detrimentally relied on its interpretation of the term.
D. One of the parties has detrimentally relied on its interpretation of the term.
Which of the following contracts is subject to the Statute of Frauds?
A. An employment contract for a ten-month period that starts in three months.
B. A contract to provide lifetime services to a 50-year-old person with a life expectancy of another 30 years.
C. A contract to construct a dam across a major river that has no fixed completion date but will likely take five years.
D. A contract to build a replica of a palace that has no fixed completion date but will likely take five years.
A. An employment contract for a ten-month period that starts in three months.
Which of the following statements regarding “perfect tender” is FALSE?
A. “Perfect tender” refers to strict performance of the contract terms.
B. The parties to a contract for a sale of goods can contract to allow for substantial performance.
C. Installment contracts for the sale of goods must satisfy the “perfect tender” requirement.
D. Perfect tender under a sale of goods contract requires perfect goods and perfect delivery.
C. Installment contracts for the sale of goods must satisfy the “perfect tender” requirement.
Regarding the “perfect tender” rule, which of the following is FALSE?
A. A seller who has not made a perfect tender of the goods has a chance to cure the tender if there is time left on the contract.
B. The perfect tender rule does not apply to an installment contract.
C. If the seller tendered nonconforming goods under a reasonable understanding that the buyer would accept the replacement goods, the buyer must allow for cure of the defective tender.
D. Once a buyer has accepted the goods, the buyer cannot revoke his acceptance and return the goods.
D. Once a buyer has accepted the goods, the buyer cannot revoke his acceptance and return the goods.
FILL IN THE BLANKS. An acceptance is a(n) ________________ manifestation of a willingness to enter into the agreement by the offeree. The offeree _______________ accept a unilateral offer with a promise to perform.
A. objective, may
B. objective, may not
C. subjective, may
D. subjective, may not
B. Objective, may not
The mailbox rule applies in which of the following situations?
A. The offeree sends an acceptance to an offer that is subject to an option contract.
B. The offeree sends an acceptance and the acceptance never arrives.
C. The offeree sends a counteroffer and then an acceptance; the offeror receives the acceptance first.
D. The offeree sends a rejection and then an acceptance; the offeror receives the acceptance first.
B. The offeree sends an acceptance and the acceptance never arrives.
Which of the following is NOT required in order for a writing to satisfy the Statute of Frauds?
A. The writing must contain the essential elements of the deal.
B. The writing must identify the parties.
C. The writing must be signed by both parties.
D. The writing must show that a contract has been made.
C. The writing must be signed by both parties.
Regarding the waiver of an express condition, which of the following statements is FALSE?
A. An express condition can be waived only by express language.
B. A party may waive an express condition by hindering its occurrence.
C. A party may waive an express condition by wrongfully interfering with its occurrence.
D. When the occurrence of an express condition depends on the actions of a party, the actions undertaken by the party are judged by a good-faith standard.
A. An express condition can be waived only by express language.
Regarding consequential damages, which of the following is FALSE?
A. Consequential damages are damages that are unique or special to the plaintiff.
B. Consequential damages may be recovered in addition to general damages.
C. Unforeseeable consequential damages are not recoverable unless the breaching party had some reason to know about the possibility of these damages.
D. Incidental damages are a subset of consequential damages.
D. Incidental damages are a subset of consequential damages.
