CONTRACTS (BAR EXAM) 2026
QUESTIONS AND VERIFIED
ANSWERS GRADED A+
Contract
Legally forceable agreement
(1) Offer
(2) Acceptance
(3) Consideration
Falls into either:
(1) Common law (anything that's not for goods) or,
(2) Article 2 UCC
Types:
(1) Bilateral: Promise for promise
(2) Unilateral: Promise for performance
Essential Terms
(1) Parties
(2) Subject Matter
(3) Price
(4) Quantity
For UCC, you do not need the price term, it can be filled with a UCC Gap-Filler (supplies
reasonable price at time of delivery
,Offer
An objective manifestation of willingness by the offeror to enter in to an agreement that creates
the power of acceptance in the offeree.
• Intent AND Specific Terms
• Offeror can offer as many people as he wants
• Offers are REVOCABLE
• Ads ARE NOT offers
Irrevocable Offers
(1) Merchant's Firm Offers
(2) Option Contracts
(3) Detrimental Reliance
(4) Beginning performance under a unilateral contract
Acceptance
An objective manifestation to be bound by the terms of the offer.
Detrimental Reliance
Arises when an offeree reasonably and detrimentally relies on the offer in some foreseeable
manner
• Look especially for a general contractor/subcontractor context
Termination of an Offer
(1) Death or Mental Incapacity
,• Exception: Option K
(2) Lapse of Time
(3) Rejection
(4) Counteroffer
(5) Revocation
(6) Illegal/Destroyed
Direct Revocation
Retraction of an Offer by the offeror
Nondisclosure
Other party does not learn the truth about something, but now you just remain quiet
• Must disclose material facts in situations involving special (fiduciary) relationship or active
concealment
Indirect Revocation
Person receiving Offer LEARNS another deal was made; if the offeree never learns that the offer
was revoked (offeror contract with someone else), the offer is still outstanding the the offeree
may still accept, therefore may bring a successful suit for damages
e.g.: Jon offers you his car. You'll think about it. Two days later your friend bought Jon's car.
Option Contract
(1) Promise to keep Offer open
, (2) Additional Consideration (usually money)
• Mailbox Rule does not apply; acceptance effective only if it is received by the offeror before
the offer expires.
UCC Firm Offer
(1) Offeror is a merchant
(2) There is an assurance that the offer is to remain open; and
(3) The assurance is contained in a signed writing from the offeror.
• Can only stay open for a MAX of 3 months.
• Mailbox Rule does not apply; acceptance effective only if it is received by the offeror before
the offer expires.
Death and Contract Termination
Death only terminates if:
(1) the K specifies otherwise, or
(2) the party's obligation involved the performance of personal services that only the party could
have rendered.
Common Law Mirror Image Rule
Acceptance must mirror the Offer! If it doesn't mirror, it's a counter-offer.
Accepting an Offer
(1) Silence
QUESTIONS AND VERIFIED
ANSWERS GRADED A+
Contract
Legally forceable agreement
(1) Offer
(2) Acceptance
(3) Consideration
Falls into either:
(1) Common law (anything that's not for goods) or,
(2) Article 2 UCC
Types:
(1) Bilateral: Promise for promise
(2) Unilateral: Promise for performance
Essential Terms
(1) Parties
(2) Subject Matter
(3) Price
(4) Quantity
For UCC, you do not need the price term, it can be filled with a UCC Gap-Filler (supplies
reasonable price at time of delivery
,Offer
An objective manifestation of willingness by the offeror to enter in to an agreement that creates
the power of acceptance in the offeree.
• Intent AND Specific Terms
• Offeror can offer as many people as he wants
• Offers are REVOCABLE
• Ads ARE NOT offers
Irrevocable Offers
(1) Merchant's Firm Offers
(2) Option Contracts
(3) Detrimental Reliance
(4) Beginning performance under a unilateral contract
Acceptance
An objective manifestation to be bound by the terms of the offer.
Detrimental Reliance
Arises when an offeree reasonably and detrimentally relies on the offer in some foreseeable
manner
• Look especially for a general contractor/subcontractor context
Termination of an Offer
(1) Death or Mental Incapacity
,• Exception: Option K
(2) Lapse of Time
(3) Rejection
(4) Counteroffer
(5) Revocation
(6) Illegal/Destroyed
Direct Revocation
Retraction of an Offer by the offeror
Nondisclosure
Other party does not learn the truth about something, but now you just remain quiet
• Must disclose material facts in situations involving special (fiduciary) relationship or active
concealment
Indirect Revocation
Person receiving Offer LEARNS another deal was made; if the offeree never learns that the offer
was revoked (offeror contract with someone else), the offer is still outstanding the the offeree
may still accept, therefore may bring a successful suit for damages
e.g.: Jon offers you his car. You'll think about it. Two days later your friend bought Jon's car.
Option Contract
(1) Promise to keep Offer open
, (2) Additional Consideration (usually money)
• Mailbox Rule does not apply; acceptance effective only if it is received by the offeror before
the offer expires.
UCC Firm Offer
(1) Offeror is a merchant
(2) There is an assurance that the offer is to remain open; and
(3) The assurance is contained in a signed writing from the offeror.
• Can only stay open for a MAX of 3 months.
• Mailbox Rule does not apply; acceptance effective only if it is received by the offeror before
the offer expires.
Death and Contract Termination
Death only terminates if:
(1) the K specifies otherwise, or
(2) the party's obligation involved the performance of personal services that only the party could
have rendered.
Common Law Mirror Image Rule
Acceptance must mirror the Offer! If it doesn't mirror, it's a counter-offer.
Accepting an Offer
(1) Silence
