MBE Multistate Bar Examination AND
PRACTICE EXAM NEWEST ACTUAL EXAM
COMPLETE 200 QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS)
|ALREADY GRADED A+
Unilateral Contract - CORRECT ANSWER Performance divided into 2
+ parts under K; Number of parts due from each party is the same; and
Performance between parties is equivalent.
Divisible Ks - CORRECT ANSWER Agreement to leave open in
exchange for consideration.
Option K - CORRECT ANSWER Generally preliminary proposal unless
words are to identifiable person (e.g. first come first serve).
Quasi-K - CORRECT ANSWER Equitable remedy when K results are
unfair. Prevents unjust enrichment.
Mixed contracts - CORRECT ANSWER Determined by the more
important part of the deal, except divided contracts in which both UCC
and common law rules may apply.
Offer - CORRECT ANSWER A manifestation of a present intent to
contract demonstrated by promise, undertaking or commitment;
Definite and certain terms; and Communicated to an identified offeree.
Must include description.
Firm Offer under UCC - CORRECT ANSWER Offer can't be revoked for
up to 3 months if: Offer to buy or sell goods; Signed written promise to
keep open; and Party is merchant.
Revocation - CORRECT ANSWER Unambiguous statement by offeror
to offeree or unambiguous conduct indicating unwillingness to K that
offeree is aware of.
,Instances Where Offer Irrevocable - CORRECT ANSWER Option K;
Detrimental reliance (must be reasonably foreseeable); Start of
performance.
Rejection of Offer - CORRECT ANSWER Counteroffers kill; Adding
terms under common law mirror image rule; Lapse of time (e.g. > 1
month); Conditional acceptance.
Acceptance - CORRECT ANSWER A manifestation of assent to the
terms of an offer in the manner prescribed or authorized by the offer.
Full performance; Start performance: for bi-lateral K, but not for
unilateral K. Seller of goods sends wrong goods, unless with
explanation (then it's a counteroffer). Offeree promise to perform.
Mailbox rule - CORRECT ANSWER Acceptance effective when mailed.
All else effective when received.
Mirror Image Rule - CORRECT ANSWER Under UCC: One party is
merchant → add'l term is proposal subject to separate rejection; Both
parties merchants → add'l term is part of K unless (1) materially alters
K; (2) offeror objects within reasonable time; or (3) offer limits
acceptance to the terms.
Consideration - CORRECT ANSWER Requires bargained-for exchange
of legal detriment between parties. Substitutes for consideration:
Written promise when prior obligation had applicable legal defense;
Promissory estoppel. Not considered consideration, except expressly
requested performance/forbearance and expectation of payment.
Past Consideration - CORRECT ANSWER New consideration required
for pre-existing K or statutory duty: except in CL, unforeseen difficulty,
third party promise or promise to pay debt barred by SoL.
Defenses to a Contract - CORRECT ANSWER Incapacity; Illegality;
Against Public Policy; Misrepresentation/Nondisclosure; Duress;
Ambiguity/Misunderstanding; Mistake; Statute of Frauds.
,Misrepresentation/Nondisclosure - CORRECT ANSWER When a
material term is open to two reasonable interpretations
Mutual mistake - CORRECT ANSWER No contract if both parties
share a mistaken belief on a fundamental fact
Unilateral mistake - CORRECT ANSWER Not voidable unless the
other party was aware of the mistake
Statute of Frauds - CORRECT ANSWER Requires written evidence for
certain types of contracts
Integration issues - CORRECT ANSWER Determining if a contract is
fully integrated or partially integrated
Parol Evidence Rule - CORRECT ANSWER Limits the use of oral
evidence to contradict written terms
Course of performance - CORRECT ANSWER Consistent actions of
the same parties under the same contract
FOB - CORRECT ANSWER Free on board, a shipping term indicating
transfer of ownership
Implied Warranty of Merchantability - CORRECT ANSWER Goods must
be fit for their ordinary purpose
Breach of Contract - CORRECT ANSWER Occurs when a party fails to
fulfill contract terms
Perfect Tender - CORRECT ANSWER Seller must deliver goods
exactly as specified in the contract
Substantial performance - CORRECT ANSWER Sufficient completion
of contract terms to warrant payment
Anticipatory Repudiation - CORRECT ANSWER One party's clear
indication of refusal to honor the contract
, Rescission - CORRECT ANSWER Mutual agreement to cancel an
existing contract
Modification - CORRECT ANSWER Changing terms of a contract,
requiring good faith in UCC
Novation - CORRECT ANSWER Mutual agreement to substitute
existing party with another, excusing performance of substituted
party.
Impossibility - CORRECT ANSWER Performance can't be done due to
damage, destruction, death, subsequent law or regulation.
Impracticability - CORRECT ANSWER Task can't be done without
extreme and unreasonable difficulty or expense. Increase in seller
cost is rarely an excuse.
Frustration of Purpose - CORRECT ANSWER Unforeseeable
supervening event destroys the contract's purpose.
Specific Performance - CORRECT ANSWER A remedy that cancels
the contract and enforces the specific terms agreed upon.
Reformation - CORRECT ANSWER Changes a written agreement to
conform to the parties' original understanding, based on valid contract
and grounds for reformation.
Reclamation - CORRECT ANSWER Right of an unpaid seller to
reclaim goods if the buyer was insolvent at the time of receipt.
Police Power - CORRECT ANSWER Power reserved to states to
regulate health, safety, and morals of its citizens.
Commerce Power - CORRECT ANSWER Federal power to regulate
commerce among states and with foreign nations.
PRACTICE EXAM NEWEST ACTUAL EXAM
COMPLETE 200 QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS)
|ALREADY GRADED A+
Unilateral Contract - CORRECT ANSWER Performance divided into 2
+ parts under K; Number of parts due from each party is the same; and
Performance between parties is equivalent.
Divisible Ks - CORRECT ANSWER Agreement to leave open in
exchange for consideration.
Option K - CORRECT ANSWER Generally preliminary proposal unless
words are to identifiable person (e.g. first come first serve).
Quasi-K - CORRECT ANSWER Equitable remedy when K results are
unfair. Prevents unjust enrichment.
Mixed contracts - CORRECT ANSWER Determined by the more
important part of the deal, except divided contracts in which both UCC
and common law rules may apply.
Offer - CORRECT ANSWER A manifestation of a present intent to
contract demonstrated by promise, undertaking or commitment;
Definite and certain terms; and Communicated to an identified offeree.
Must include description.
Firm Offer under UCC - CORRECT ANSWER Offer can't be revoked for
up to 3 months if: Offer to buy or sell goods; Signed written promise to
keep open; and Party is merchant.
Revocation - CORRECT ANSWER Unambiguous statement by offeror
to offeree or unambiguous conduct indicating unwillingness to K that
offeree is aware of.
,Instances Where Offer Irrevocable - CORRECT ANSWER Option K;
Detrimental reliance (must be reasonably foreseeable); Start of
performance.
Rejection of Offer - CORRECT ANSWER Counteroffers kill; Adding
terms under common law mirror image rule; Lapse of time (e.g. > 1
month); Conditional acceptance.
Acceptance - CORRECT ANSWER A manifestation of assent to the
terms of an offer in the manner prescribed or authorized by the offer.
Full performance; Start performance: for bi-lateral K, but not for
unilateral K. Seller of goods sends wrong goods, unless with
explanation (then it's a counteroffer). Offeree promise to perform.
Mailbox rule - CORRECT ANSWER Acceptance effective when mailed.
All else effective when received.
Mirror Image Rule - CORRECT ANSWER Under UCC: One party is
merchant → add'l term is proposal subject to separate rejection; Both
parties merchants → add'l term is part of K unless (1) materially alters
K; (2) offeror objects within reasonable time; or (3) offer limits
acceptance to the terms.
Consideration - CORRECT ANSWER Requires bargained-for exchange
of legal detriment between parties. Substitutes for consideration:
Written promise when prior obligation had applicable legal defense;
Promissory estoppel. Not considered consideration, except expressly
requested performance/forbearance and expectation of payment.
Past Consideration - CORRECT ANSWER New consideration required
for pre-existing K or statutory duty: except in CL, unforeseen difficulty,
third party promise or promise to pay debt barred by SoL.
Defenses to a Contract - CORRECT ANSWER Incapacity; Illegality;
Against Public Policy; Misrepresentation/Nondisclosure; Duress;
Ambiguity/Misunderstanding; Mistake; Statute of Frauds.
,Misrepresentation/Nondisclosure - CORRECT ANSWER When a
material term is open to two reasonable interpretations
Mutual mistake - CORRECT ANSWER No contract if both parties
share a mistaken belief on a fundamental fact
Unilateral mistake - CORRECT ANSWER Not voidable unless the
other party was aware of the mistake
Statute of Frauds - CORRECT ANSWER Requires written evidence for
certain types of contracts
Integration issues - CORRECT ANSWER Determining if a contract is
fully integrated or partially integrated
Parol Evidence Rule - CORRECT ANSWER Limits the use of oral
evidence to contradict written terms
Course of performance - CORRECT ANSWER Consistent actions of
the same parties under the same contract
FOB - CORRECT ANSWER Free on board, a shipping term indicating
transfer of ownership
Implied Warranty of Merchantability - CORRECT ANSWER Goods must
be fit for their ordinary purpose
Breach of Contract - CORRECT ANSWER Occurs when a party fails to
fulfill contract terms
Perfect Tender - CORRECT ANSWER Seller must deliver goods
exactly as specified in the contract
Substantial performance - CORRECT ANSWER Sufficient completion
of contract terms to warrant payment
Anticipatory Repudiation - CORRECT ANSWER One party's clear
indication of refusal to honor the contract
, Rescission - CORRECT ANSWER Mutual agreement to cancel an
existing contract
Modification - CORRECT ANSWER Changing terms of a contract,
requiring good faith in UCC
Novation - CORRECT ANSWER Mutual agreement to substitute
existing party with another, excusing performance of substituted
party.
Impossibility - CORRECT ANSWER Performance can't be done due to
damage, destruction, death, subsequent law or regulation.
Impracticability - CORRECT ANSWER Task can't be done without
extreme and unreasonable difficulty or expense. Increase in seller
cost is rarely an excuse.
Frustration of Purpose - CORRECT ANSWER Unforeseeable
supervening event destroys the contract's purpose.
Specific Performance - CORRECT ANSWER A remedy that cancels
the contract and enforces the specific terms agreed upon.
Reformation - CORRECT ANSWER Changes a written agreement to
conform to the parties' original understanding, based on valid contract
and grounds for reformation.
Reclamation - CORRECT ANSWER Right of an unpaid seller to
reclaim goods if the buyer was insolvent at the time of receipt.
Police Power - CORRECT ANSWER Power reserved to states to
regulate health, safety, and morals of its citizens.
Commerce Power - CORRECT ANSWER Federal power to regulate
commerce among states and with foreign nations.
