Practice-Test Contracts Bar Prep
Questions with Solved Solutions 2026
Updated.
(1) What Law Applies - Common Law vs. UCC
(2) Formation of Contract - Offer/termination/acceptance/consideration
(3) Defenses - capacity, ambiguity, mistake, unconscionability, duress, statute of Frauds, etc.
(4) Terms - PER, UCC terms, Warranties, etc
(5) Excuse for Nonperformance - material breach, impossibility, etc.
(6) Remedies - specific performance, expectation interest, etc.
(7) Third-Party Problems - beneficiaries, assignments, etc - Answer Love For Dogs: Treat Every
Rover Terrifically
Common law of contracts vs. Article 2 of the UCC
UCC applies to sale of goods (goods are moveable, personal property)
Common law applies to any other contract (services, construction, land sale, etc.) - Answer
What Law Applies
apply all Common law or all UCC article 2 depending on what is the more important part of the
deal (i.e. buy car with driving lesson thrown in) -- article 2 would apply - Answer Predominant
Purpose
legally enforceable agreement
express contract: created by parties words (oral or written)
implied in fact: is created by their CONDUCT (barber shop example) - Answer Formation of
Contract: Define Contract; express vs. implied in fact K
body of law that protects against unjust enrichment whenever K law yields an unfair/unjust
result
restitution is the remedy of last resort - Answer Restitution
Bilateral: an offer can be accepted in any reasonable way (i.e. offer is OPEN as to the method of
acceptance) (most MBE questions are bilateral)
Unilateral: an offer can be accepted only by performing ("offer, only, by ___" Bar exam tipoff for
unilateral K; reward offers also unilateral) - Answer Bilateral K vs. Unilateral K
,a manifestation of an intention to be bound (as judged by a Reasonable Person/Objective
Standard)
*Ads: an ad is NOT an offer UNLESS there's a quantity
- - Answer Offer
When ad specific as to quantity and tells you exactly what to do when show up/how to accept
then that constitutes an offer
- buy our carbolic smoke-ball, inhale it as we say, and if still get the flu, we offer you money back
--> specific as to quantity in reward 1000 money back or something - Answer Mink Stole and
Carbolic Smokeball exceptions
see if any of the terms are too indefinite to be enforced
if common law - NO Offer when a land sale missing price
Open price term in a sales K UCC vs. common law - court will read n a reasonable price for sale
of goods BUT NOT in common law - Answer Indefiniteness
article 2 can have valid offers and valid K even if don't know quantity right at the outset; can
contract to buy "all its requirements.."
Article 2 lets quantity be measured by buyer's needs
Article 2 presumes that buyer will exercise her requirements in good faith
Solar City Hypo: trying to really jump up requirements i.e from one year 100,000 to 1 million the
next year, seller WILL NOT be bound to deliver 1 million the next year
MC Hypo: changing demand is one of the standard risks of business that both parties assume
when doing all output K's - Answer Requirements Contracts (article 2)
(1) lapse of time
(2) revocation
(3) rejection
(4) death - Answer Termination Methods of an offer
(offer will lapse after stated time in offer, or more commonly, after a reasonable time has passed
* pay attention for dates separated by more than one month - Answer lapse of time
an offer terminates when the offeror revokes the offer
General Rule: an offer can be revoked any time before acceptance - Answer Revocation
, Direct Revocation: the offeror indicates directly to the offeree that he/she has changes her/his
mind about entering the deal - Answer Direct Revocation
Indirect Revocation: the offeror engages in conduct that indicates changed her mind AND the
offeree is aware of that conduct - Answer Indirect Revocation
(1) Option
(2) Firm Offer
(3) Foreseeable Reliance Before vs. After Acceptance
(4) Starting to Perform a Unilateral K - Answer Four Exceptions Where an Offer Cannot be
Revoked
a promise to keep the offer open that is PAID FOR
- pay valuable consideration in exchange for the promise to keep offer open
- can keep open as long as want as long as have considertion - Answer Option
applies in a (1) sale of goods, if a (2) MERCHANT promises in a (3)signed writing to keep an offer
open, then the offer is irrevocable (no consideration required)
NOTE: under Article 2, the terms "merchant" and signed are BROADLY DEFINED
NOTE: three month MAX on merchant firm offer
Note: if promise to hold offer open but don't state for how long, then court will fix a reasonable
time (so long as not longer than three months) - Answer Firm Offer
Cannot make argument that you relied when did reliance before acceptance
look at hypos 2H and 2I on page 9 for examples
look for construction bidding contest to make an offer irrevocable - Answer Foreseeable
Reliance Before vs. After Acceptance
once start to perform under unilateral K, that makes offeror's offer irrevocable for a reasonable
time that it would take to complete performance
Brooklyn Bridge hypo: once start, suspends ability to revoke
** what if i had ordered paint, but not yet started painting the house - can M still revoke? yes,
this is "mere preparation" ; BUT if there was foreseeable, detrimental reliance (ie. setting up
everything at the house, bringing paint to house, painter climbs ladder, etc.) could get
foreseeable reliance rule, but not starting to perform a unilateral K - Answer Starting to
Perform a Unilateral K
a revocation is effective ON RECEIPT (no Mailbox RULE!!) - Answer Timing of Revocation
Questions with Solved Solutions 2026
Updated.
(1) What Law Applies - Common Law vs. UCC
(2) Formation of Contract - Offer/termination/acceptance/consideration
(3) Defenses - capacity, ambiguity, mistake, unconscionability, duress, statute of Frauds, etc.
(4) Terms - PER, UCC terms, Warranties, etc
(5) Excuse for Nonperformance - material breach, impossibility, etc.
(6) Remedies - specific performance, expectation interest, etc.
(7) Third-Party Problems - beneficiaries, assignments, etc - Answer Love For Dogs: Treat Every
Rover Terrifically
Common law of contracts vs. Article 2 of the UCC
UCC applies to sale of goods (goods are moveable, personal property)
Common law applies to any other contract (services, construction, land sale, etc.) - Answer
What Law Applies
apply all Common law or all UCC article 2 depending on what is the more important part of the
deal (i.e. buy car with driving lesson thrown in) -- article 2 would apply - Answer Predominant
Purpose
legally enforceable agreement
express contract: created by parties words (oral or written)
implied in fact: is created by their CONDUCT (barber shop example) - Answer Formation of
Contract: Define Contract; express vs. implied in fact K
body of law that protects against unjust enrichment whenever K law yields an unfair/unjust
result
restitution is the remedy of last resort - Answer Restitution
Bilateral: an offer can be accepted in any reasonable way (i.e. offer is OPEN as to the method of
acceptance) (most MBE questions are bilateral)
Unilateral: an offer can be accepted only by performing ("offer, only, by ___" Bar exam tipoff for
unilateral K; reward offers also unilateral) - Answer Bilateral K vs. Unilateral K
,a manifestation of an intention to be bound (as judged by a Reasonable Person/Objective
Standard)
*Ads: an ad is NOT an offer UNLESS there's a quantity
- - Answer Offer
When ad specific as to quantity and tells you exactly what to do when show up/how to accept
then that constitutes an offer
- buy our carbolic smoke-ball, inhale it as we say, and if still get the flu, we offer you money back
--> specific as to quantity in reward 1000 money back or something - Answer Mink Stole and
Carbolic Smokeball exceptions
see if any of the terms are too indefinite to be enforced
if common law - NO Offer when a land sale missing price
Open price term in a sales K UCC vs. common law - court will read n a reasonable price for sale
of goods BUT NOT in common law - Answer Indefiniteness
article 2 can have valid offers and valid K even if don't know quantity right at the outset; can
contract to buy "all its requirements.."
Article 2 lets quantity be measured by buyer's needs
Article 2 presumes that buyer will exercise her requirements in good faith
Solar City Hypo: trying to really jump up requirements i.e from one year 100,000 to 1 million the
next year, seller WILL NOT be bound to deliver 1 million the next year
MC Hypo: changing demand is one of the standard risks of business that both parties assume
when doing all output K's - Answer Requirements Contracts (article 2)
(1) lapse of time
(2) revocation
(3) rejection
(4) death - Answer Termination Methods of an offer
(offer will lapse after stated time in offer, or more commonly, after a reasonable time has passed
* pay attention for dates separated by more than one month - Answer lapse of time
an offer terminates when the offeror revokes the offer
General Rule: an offer can be revoked any time before acceptance - Answer Revocation
, Direct Revocation: the offeror indicates directly to the offeree that he/she has changes her/his
mind about entering the deal - Answer Direct Revocation
Indirect Revocation: the offeror engages in conduct that indicates changed her mind AND the
offeree is aware of that conduct - Answer Indirect Revocation
(1) Option
(2) Firm Offer
(3) Foreseeable Reliance Before vs. After Acceptance
(4) Starting to Perform a Unilateral K - Answer Four Exceptions Where an Offer Cannot be
Revoked
a promise to keep the offer open that is PAID FOR
- pay valuable consideration in exchange for the promise to keep offer open
- can keep open as long as want as long as have considertion - Answer Option
applies in a (1) sale of goods, if a (2) MERCHANT promises in a (3)signed writing to keep an offer
open, then the offer is irrevocable (no consideration required)
NOTE: under Article 2, the terms "merchant" and signed are BROADLY DEFINED
NOTE: three month MAX on merchant firm offer
Note: if promise to hold offer open but don't state for how long, then court will fix a reasonable
time (so long as not longer than three months) - Answer Firm Offer
Cannot make argument that you relied when did reliance before acceptance
look at hypos 2H and 2I on page 9 for examples
look for construction bidding contest to make an offer irrevocable - Answer Foreseeable
Reliance Before vs. After Acceptance
once start to perform under unilateral K, that makes offeror's offer irrevocable for a reasonable
time that it would take to complete performance
Brooklyn Bridge hypo: once start, suspends ability to revoke
** what if i had ordered paint, but not yet started painting the house - can M still revoke? yes,
this is "mere preparation" ; BUT if there was foreseeable, detrimental reliance (ie. setting up
everything at the house, bringing paint to house, painter climbs ladder, etc.) could get
foreseeable reliance rule, but not starting to perform a unilateral K - Answer Starting to
Perform a Unilateral K
a revocation is effective ON RECEIPT (no Mailbox RULE!!) - Answer Timing of Revocation
