BUSSEL - 23F EXAM QUESTIONS AND
ANSWERS 100% PASS
What is an illusory promise in contract law? - ANS A promise that lacks consideration and
therefore does not constitute a binding contract.
What case illustrates the concept of illusory promises? - ANS Des Los Santos (beets -
illusory/continuing offer).
What is the significance of good faith in contract law? - ANS Good faith refers to the intention
to deal fairly and honestly in contractual agreements.
Which case involved a purchase based on satisfactory leases? - ANS Mattei v. Hopper.
What does the case Sylvan Crest v. US illustrate about cancellation clauses? - ANS It shows
that a cancellation clause does not mean it can be exercised at any time.
What is the objective theory of contract interpretation according to Justice Holmes? -
ANS Contracts should be interpreted based on the reasonable understanding of the parties
involved.
What case involved the distinction between fryers and stewers? - ANS Frigaliment.
What are the three things analyzed when interpreting a contract? - ANS 1. Actual intent, 2.
Hypothetical intent, 3. Objective terms of the contract.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,What are punitive damages in contract law? - ANS Damages that are not awarded in contract
law, as they are typically reserved for tort cases.
What case illustrates the limitation of specific performance in contract law? - ANS ABC v.
Wolf.
What is the purpose of expectancy damages? - ANS To provide a remedy based on what the
injured party expected to gain from the contract.
Which case allowed reliance damages for expenditures before a contract was signed? -
ANS Anglia v. Reed.
What is the rule for consequential damages under UCC 2-715? - ANS Consequential damages
are recoverable if they are foreseeable and the injured party could not mitigate them.
What case established the need for foreseeability in consequential damages? - ANS Hadley v.
Baxendale.
What is the reasonable certainty of damages in contract law? - ANS Damages must be proven
with reasonable certainty to be recoverable.
What case allowed expert testimony for hard-to-prove damages? - ANS Eastern AL v.
McDonnell.
What does the case Rockingham v. Luten Bridge illustrate about mitigation? - ANS It shows
that a party must mitigate damages and cannot claim for losses that could have been avoided.
What is the concept of restitution in contract law? - ANS Restitution aims to prevent unjust
enrichment when no formal contract exists.
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, What is a quasi contract? - ANS An obligation imposed by law to prevent unjust enrichment,
despite the absence of a formal contract.
What case involved unjust enrichment with part performance? - ANS Britton v. Turner.
What is the significance of liquidated damages vs. penalties? - ANS Liquidated damages are
enforceable if they are a reasonable estimate of actual damages, while penalties are not.
What case illustrates the enforcement of liquidated damages? - ANS Lake River Corp.
What is the ruling in Buckeye v. Cardegna regarding arbitration? - ANS If the issue is with the
contract, the entire contract goes to arbitration.
What does the case Armendariz state about unconscionability in contracts? -
ANS Unconscionability can void the entire contract if it permeates through.
What is the general rule regarding NDAs in contract law? - ANS NDAs are usually enforceable
unless they violate public policy.
What case involved a bribe related to public policy? - ANS McConnell v. Commonwealth.
What does the case Tenet v. Doe illustrate about government immunity? - ANS It shows that
courts may not get involved in cases against the government.
What is the legal standard for duress in contract law? - ANS Improper threats that render a
contract unenforceable.
What case involved a threat to expose a customer regarding coats? - ANS Dunham v. Kudra.
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
ANSWERS 100% PASS
What is an illusory promise in contract law? - ANS A promise that lacks consideration and
therefore does not constitute a binding contract.
What case illustrates the concept of illusory promises? - ANS Des Los Santos (beets -
illusory/continuing offer).
What is the significance of good faith in contract law? - ANS Good faith refers to the intention
to deal fairly and honestly in contractual agreements.
Which case involved a purchase based on satisfactory leases? - ANS Mattei v. Hopper.
What does the case Sylvan Crest v. US illustrate about cancellation clauses? - ANS It shows
that a cancellation clause does not mean it can be exercised at any time.
What is the objective theory of contract interpretation according to Justice Holmes? -
ANS Contracts should be interpreted based on the reasonable understanding of the parties
involved.
What case involved the distinction between fryers and stewers? - ANS Frigaliment.
What are the three things analyzed when interpreting a contract? - ANS 1. Actual intent, 2.
Hypothetical intent, 3. Objective terms of the contract.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,What are punitive damages in contract law? - ANS Damages that are not awarded in contract
law, as they are typically reserved for tort cases.
What case illustrates the limitation of specific performance in contract law? - ANS ABC v.
Wolf.
What is the purpose of expectancy damages? - ANS To provide a remedy based on what the
injured party expected to gain from the contract.
Which case allowed reliance damages for expenditures before a contract was signed? -
ANS Anglia v. Reed.
What is the rule for consequential damages under UCC 2-715? - ANS Consequential damages
are recoverable if they are foreseeable and the injured party could not mitigate them.
What case established the need for foreseeability in consequential damages? - ANS Hadley v.
Baxendale.
What is the reasonable certainty of damages in contract law? - ANS Damages must be proven
with reasonable certainty to be recoverable.
What case allowed expert testimony for hard-to-prove damages? - ANS Eastern AL v.
McDonnell.
What does the case Rockingham v. Luten Bridge illustrate about mitigation? - ANS It shows
that a party must mitigate damages and cannot claim for losses that could have been avoided.
What is the concept of restitution in contract law? - ANS Restitution aims to prevent unjust
enrichment when no formal contract exists.
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, What is a quasi contract? - ANS An obligation imposed by law to prevent unjust enrichment,
despite the absence of a formal contract.
What case involved unjust enrichment with part performance? - ANS Britton v. Turner.
What is the significance of liquidated damages vs. penalties? - ANS Liquidated damages are
enforceable if they are a reasonable estimate of actual damages, while penalties are not.
What case illustrates the enforcement of liquidated damages? - ANS Lake River Corp.
What is the ruling in Buckeye v. Cardegna regarding arbitration? - ANS If the issue is with the
contract, the entire contract goes to arbitration.
What does the case Armendariz state about unconscionability in contracts? -
ANS Unconscionability can void the entire contract if it permeates through.
What is the general rule regarding NDAs in contract law? - ANS NDAs are usually enforceable
unless they violate public policy.
What case involved a bribe related to public policy? - ANS McConnell v. Commonwealth.
What does the case Tenet v. Doe illustrate about government immunity? - ANS It shows that
courts may not get involved in cases against the government.
What is the legal standard for duress in contract law? - ANS Improper threats that render a
contract unenforceable.
What case involved a threat to expose a customer regarding coats? - ANS Dunham v. Kudra.
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
