MEE Practice Question Rules

Question 1

The UCC controls contracts for:

Answer 1

the sale of goods

Question 2

The common law controls contracts for:

Answer 2

services or real estate

Question 3

Anticipatory repudiation occurs when (UCC):

Answer 3

there has been an unequivocal refusal of the buyer or seller to perform, OR when a party creating reasonable grounds for insecurity fails to provide adequate assurances within 30 days of the demand for such assurances

Question 4

Repudiation allows:

Answer 4

the nonrepudiating party to resort to any remedy given by contract or code

Question 5

Repudiation may be retracted:

Answer 5

Until the repudiating party’s next performance is due, UNLESS the aggrieved party: (1) has since accepted the repudiation, acted in reliance on the repudiation, or brought an action for breach

Question 6

Proper retraction of repudiation:

Answer 6

includes any assurances of performances that the other party has justifiably demanded about whether the retracting party will perform, and reinstates the repudiating party’s contract rights

Question 7

If a transaction includes both goods and services:

Answer 7

the predominant purpose test is applied to resolve whether the common law or UCC applies to the entire transaction

Question 8

Material breach under the common law occurs when:

Answer 8

the non-breaching party does not receive the substantial benefit of the bargain

Question 9

A material breach allows:

Answer 9

the non-breaching party to withhold any promised performance and to pursue remedies for the breach, including damages

Question 10

A minor breach allows:

Answer 10

the non-breaching party to any remedies that would apply to the non-material breach

Question 11

Substantial performance occurs when:

Answer 11

a party substantially complies with an implied or constructive condition, which triggers the obligation of the other party to perform

Question 12

A party that substantially performs their contractual obligations can:

Answer 12

can recover the contract price minus any amount that it will cost the other party to obtain the promised full performance

Question 13

A party that has non substantially performed:

Answer 13

generally cannot recover damages based on the contract, but may be able to recover through restitution (restitution requires willful breach)

Question 14

If a party intentionally furnishes services that are materially different that what was promised:

Answer 14

they cannot recover anything in restitution unless the non-breaching party has accepted or agreed to accept the substitute performance

Question 15

The general measure of damages in construction contracts is:

Answer 15

the difference between the contract price and the cost of construciton by another builder, PLUS any progress payments made to the breaching builder and compensation for delay in completion of the construction

Question 16

When a breach results in unfinished constrction:

Answer 16

if the award of damages based on the cost to fix or complete the construction would result in economic waste, thena a court may instead, at its discretion, award damages equal to dimunition in market price caused by the breach.

Question 17

Economic waste occurs when:

Answer 17

the cost to fix or complete the construction is clearly disproportional to any economic benefit or utility gained as a result

Question 18

Compensatory damages are:

Answer 18

meant to compensate the non-breaching party for actual economic losses

Question 19

Expectation damages are:

Answer 19

intended to put the non-breaching party in the same position as if the contract had been performed; they must be calculated with reasonable certainty

Question 20

Consequential damages:

Answer 20

are damages that arise out of special circumstances unique to the parties to the contract, rather than arising necessarily from the contract itself.

Question 21

Consequential damages still result directly from the breach, but:

Answer 21

may not be foreseeable to one of the parties unless the special circumstances are known; they must be reasonably foreseeable by the breaching party in order to be recoverable

Question 22

Unforeseeable consequential damages are not:

Answer 22

recoverable unless the breaching party had some reason to know about the possibility of these unforeseeable consequential damages

Question 23

Damages are considered foreseeable and thus consequential if:

Answer 23

they were the natural and probable consequences of breach, or if they were “in the contemplation of the parties at the time the contract was made, or they were otherwise foreseeable

Question 24

There must be a causal link between the consequential damages and:

Answer 24

the breach for damages to be recoverable

Question 25

Can consequential damages be speculative?

Answer 25

No. Consequential damages must be proven with reasonable certainty

Question 26

To what extent must a party to a contract mitigate damages?

Answer 26

To the extent possible by taking steps that do not involve undue risk, expense, or inconvenience

Question 27

A non-breaching party's failure to mitigate:

Answer 27

only reduces the damages that may be recovered by the non-breaching party; the non-breaching party is held to a high standard in preventing loss.

Question 28

Under the UCC, a contract is formed if:

Answer 28

both parties intend to contract and there is a reasonably certain basis for giving a remedy

Question 29

What is the only essential term in a UCC contract?

Answer 29

Quantity - as long as the parties intended to create a contract, the UCC "fills the gap" if other terms are missing

Question 30

Contracts for the sale of goods over $500:

Answer 30

must be in writing and signed by the party to be charged (or her agent) to satisfy the Statute of Frauds; otherwise, the contract is not enforceable against the party who did not sign

Question 31

For writing to satisfy the Statute of Frauds:

Answer 31

it need only be sufficient to indicate that the parties entered into a contract

Question 32

A contract is outside the UCC statute of frauds:

Answer 32

to the extent that goods are received and accepted, and to the extent that payment has been made and accepted

Question 33

When the price of goods is at least $500, the UCC requires:

Answer 33

a memorandum of the sale that must (I) indicate that a contract has been made, (II) identify the parties, (III) contain a quantity term, and (IV) be signed by the party to be charged.

Question 34

A signature, for purposes of the Statute of Frauds, includes:

Answer 34

any authentication that identifies the party to be charged, such as a letterhead on the memorandum

Question 35

For purposes of the UCC statute of frauds, a mistake in the memorandum or the omission of terms:

Answer 35

does not destroy the memorandum's validity - an omitted term can be proved by parol evidence - however, enforcement is limited to the quantity term actually stated in the memorandum

Question 36

When the UCC statute of frauds writing requirement is not met, consider:

Answer 36

whether a merchant's confirmatory memo exists to enforce the agreement

Question 37

What is a merchant?

Answer 37

A person who regularly deals in the type of goods involved in the transaction or otherwise by his occupation holds himself out as having knowledge or skill peculiar to the practices or goods involved

Question 38

In contracts of $500 or more between merchants:

Answer 38

if a memorandum sufficient against one party is sent to the other party, who has reason to know its contents, and the receiving party does not object in writing within 10 days, then the contract is enforceable against the receiving party, even though he has not signed it.