Gabriel Garnica Law 1101 Study Guide
Exam and All Actual Answers 2025-
2026 Updated.
Firm Offer - Answer An offer for the sale of goods made by a merchant in a signed writing
which promises to be held open for a given period of time not to exceed 3 months. It can be for
less than 3 months, but if for more, then it will no longer be irrevocable.
This is to be distinguished from a GOL Firm Offer which may involve services, non-merchant etc.
which does not have the 3-month limit and can go for a reasonable time.
5% rule - Answer rule that acceptance changes cannot be over 5%
Quantum meruit - Answer A party should get what it has earned
Ex: A agrees to sing 3 shows at B's club and stops after 2 shows. A is entitled to payment for 2
shows minus damages according to quantum meruit and unjust enrichment to B if B did not
have to pay for the 2 shows A did sing (A sang for free?)
Anticipatory breach/repudiation - Answer 1. K is executor (not yet finished)
2. One side states that he or she will not fully perform on the future due time
3. Other side can
a) sue now
b) suggest the sides discuss
c) sue when due
Course of performance - Answer The conduct that occurs under the terms of a particular
agreement, which indicates what the parties to that agreement intended it to mean.
Third party creditor beneficiary - Answer An intended beneficiary of a contract between
others who stands to benefit from that contract because of a debt owed to her by one of the
parties of that contract.
Check cases - Answer A fixes B's car and both agree that B will pay A $ 1,000 for this repair
(un-liquidated since not a formal, proven debt but just between two people) but B only sends A
a check for $ 500. If A cashes or deposits the check without writing "under protest" next to his
signature in the back of the check (endorsement) A will cancel any remaining debt and B will be
clear.
By writing "under protest" A only preserves his chance to seek the rest...he may still lose his
effort, but at least he will have his day in court. Without that writing, he will not even be
allowed in the door.
, Consideration - Answer Value given in return for a promise. It is the fuel that makes a
contract run. It consists of a mutual exchange of legally sufficient and bargained for risk and
sacrifice + reward and benefit.
2 Types of Consideration
1) Regular- promise to do something on has no prior legal duty or obligation to do.
2) Forbearance- promise to not do something one has a legal right or ability to do.
Consideration is something for something...it is the why you did this, promised that, or did not
do that other thing.
Ex: Joe writes "I promise to pay my assistant Anne $ 1,000 for being honest last year". Mildred
writes "I promise to redecorate Ken's home this month because he cared for my mother last
year for free." If both these writings are signed, they are enforceable because they are each
otherwise clear, legal etc.
MMR - Answer (Merchant Memo Rule): Two merchants involved, and one sends a
confirming memo which the other fails to object to within 10 business days so the memo
becomes the new contract and terms.
Mitigation of damages - Answer Parties are expected and obligated to do all they can to
reasonably mitigate their damages if they want to recover their losses.
Mitigation Damages: The damages that still exist after one tries to mitigate
Mitigation of Damages: The actual effort to try to mitigate one's damages.
Ex: Suppose that above B refuses to buy the 10 suits and A was forced to sell them to X for $
800 each. A would have suffered mitigation damages of 10 suits x $ 200 loss on each suit = $
2,000
Ex 2: Suppose that above A refused to sell and B was forced to buy the same suits from Y for $
1,300 each. B would have suffered mitigation damages of 10 suits x $ 300 extra cost for each
suit = $ 3,000
You will only be entitled to damages you tried to mitigate.
Acceptance with changes flowchart - Answer Offer made and acceptance with changes
made, was it prohibited?
If yes--- suggestion that can be ignored
If no --- continue
Were changes too big (over 5%)?
If yes--- suggestion that can be ignored
If no --- continue
Were changes objected to within 10 business days?
Exam and All Actual Answers 2025-
2026 Updated.
Firm Offer - Answer An offer for the sale of goods made by a merchant in a signed writing
which promises to be held open for a given period of time not to exceed 3 months. It can be for
less than 3 months, but if for more, then it will no longer be irrevocable.
This is to be distinguished from a GOL Firm Offer which may involve services, non-merchant etc.
which does not have the 3-month limit and can go for a reasonable time.
5% rule - Answer rule that acceptance changes cannot be over 5%
Quantum meruit - Answer A party should get what it has earned
Ex: A agrees to sing 3 shows at B's club and stops after 2 shows. A is entitled to payment for 2
shows minus damages according to quantum meruit and unjust enrichment to B if B did not
have to pay for the 2 shows A did sing (A sang for free?)
Anticipatory breach/repudiation - Answer 1. K is executor (not yet finished)
2. One side states that he or she will not fully perform on the future due time
3. Other side can
a) sue now
b) suggest the sides discuss
c) sue when due
Course of performance - Answer The conduct that occurs under the terms of a particular
agreement, which indicates what the parties to that agreement intended it to mean.
Third party creditor beneficiary - Answer An intended beneficiary of a contract between
others who stands to benefit from that contract because of a debt owed to her by one of the
parties of that contract.
Check cases - Answer A fixes B's car and both agree that B will pay A $ 1,000 for this repair
(un-liquidated since not a formal, proven debt but just between two people) but B only sends A
a check for $ 500. If A cashes or deposits the check without writing "under protest" next to his
signature in the back of the check (endorsement) A will cancel any remaining debt and B will be
clear.
By writing "under protest" A only preserves his chance to seek the rest...he may still lose his
effort, but at least he will have his day in court. Without that writing, he will not even be
allowed in the door.
, Consideration - Answer Value given in return for a promise. It is the fuel that makes a
contract run. It consists of a mutual exchange of legally sufficient and bargained for risk and
sacrifice + reward and benefit.
2 Types of Consideration
1) Regular- promise to do something on has no prior legal duty or obligation to do.
2) Forbearance- promise to not do something one has a legal right or ability to do.
Consideration is something for something...it is the why you did this, promised that, or did not
do that other thing.
Ex: Joe writes "I promise to pay my assistant Anne $ 1,000 for being honest last year". Mildred
writes "I promise to redecorate Ken's home this month because he cared for my mother last
year for free." If both these writings are signed, they are enforceable because they are each
otherwise clear, legal etc.
MMR - Answer (Merchant Memo Rule): Two merchants involved, and one sends a
confirming memo which the other fails to object to within 10 business days so the memo
becomes the new contract and terms.
Mitigation of damages - Answer Parties are expected and obligated to do all they can to
reasonably mitigate their damages if they want to recover their losses.
Mitigation Damages: The damages that still exist after one tries to mitigate
Mitigation of Damages: The actual effort to try to mitigate one's damages.
Ex: Suppose that above B refuses to buy the 10 suits and A was forced to sell them to X for $
800 each. A would have suffered mitigation damages of 10 suits x $ 200 loss on each suit = $
2,000
Ex 2: Suppose that above A refused to sell and B was forced to buy the same suits from Y for $
1,300 each. B would have suffered mitigation damages of 10 suits x $ 300 extra cost for each
suit = $ 3,000
You will only be entitled to damages you tried to mitigate.
Acceptance with changes flowchart - Answer Offer made and acceptance with changes
made, was it prohibited?
If yes--- suggestion that can be ignored
If no --- continue
Were changes too big (over 5%)?
If yes--- suggestion that can be ignored
If no --- continue
Were changes objected to within 10 business days?
