Bar Contracts Exam Questions with
Verified Solutions
#1 APPLICABLE LAW - ANSWER-The Multistate Bar Exam tests on two kinds of
contract law: the common law of contracts and Article 2 of the Uniform Commercial
Code (UCC). Which one applies?
Article 2-Applies to a sale of goods ["goods" are moveable, personal property]
Common Law-Applies to any other contract
1. Mark Fuhrman contracts to buy Whiteacre. Does Article 2 apply?
2. Mrs. Brady hires Lindsay Lohan to babysit the "bunch." Does Article 2 apply?
3. Vin Diesel buys a toupee. Does Article 2 apply?
4. Anthony Weiner buys "The Guide to Texting." The price includes a free class. Article
2 or not? - ANSWER-1. Real property is NOT covered by UCC Art. 2
2. No, sale of services, not goods
3. Yes, SOG=CL. Doesn't matter what the price is or whether the parties are merchants.
A2 applies to EVERY sale of goods.
4. Mixed contract for goods and services. Which element is more important? The Guide
= A2
NOTE:
MBE = Common law
Tex = A2A
You lease a convertible from Avis Rent-a-Car. What law applies? - ANSWER-MBE =
Common law
Tex = A2A
CONTRACT FORMATION - ANSWER-Contract - A legally-enforceable agreement. An
express con- tract is created by the parties' words (oral or written). An implied-in-fact
contract is created by their conduct.
Restitution - Protects against unjust enrichment whenever contract law yields an unfair
result. Restitution is the remedy of last resort.
Chris Hemsworth orally agreed to work for Sony Pictures for ve years for $20 million per
lm. After "Blackhat" bombed, Sony refused to pay him for the lm. The Statute of Frauds
bars Chris from enforcing the contract. Can he recover from Sony in restitution?
,How much can he recover in restitution? - ANSWER-Yes, otherwise it wouldn't be fair.
Sony would have gotten his acting services for free.
NOTE: Reward, contest, or prize = unilateral contract
O/A; look for flaws in agreement process
IHOP advertises in the Daily News: "Incredible offer! Breakfast special for $2.49." Offer?
- ANSWER-No, because ads usually not offers because there's no quantity term.
Flatus Café offers to buy all its requirements of beans from Seller for six years for
$1/can. Seller accepts the café's offer. For the last three years, the café has ordered
1,000 cans a year. Can the café require Seller to deliver 8,000 cans this year? -
ANSWER-Look for sudden spike in requirements contracts.
No, b/c even if beans were ordered in good faith, the buyer cannot take the seller by
surprise!
SECOND STEP OF AGREEMENT PROCESS: WAS THE OFFER TERMINATED? -
ANSWER-Lapse
An offer lapses after a stated term or after a reasonable time has passed.
On March 15, I o er to sell Jennifer Lawrence my Honda for $5,000. My o er does not
contain a termination date. Can Jen accept my o er on December 22? - ANSWER-No,
offer lapsed after a reasonable time.
On January 3, I offer to sell Jennifer my Honda for $5,000. The next day, in the shower,
I exclaim, "I do not want to sell my Honda to Jennifer."
1. Can Jennifer still accept?
2. If I sell my Honda to Lena Dunham on January 4, can Jennifer still accept my offer?
[TRICK Q!]
3. Lena tells Jennifer she bought the Honda from me. Can Jennifer still accept my offer?
- ANSWER-1. Yes
2. Yes, b/c she is not aware of the conduct
3. No, b/c we have offer or conduct and offeree awareness = indirect revocation.
I promise Jennifer I will keep my offer open for a week. 1. Can I revoke?
I promise to keep my offer open for a week if Jennifer pays me $100. She does.
2. Can I still revoke? - ANSWER-1. Yes! Merely promising is NOT enough.
2. No, there was consideration for the option.
RULE: Fallback position. Look first for an option; if no option, then look to firm offer
(SOG)
Carmax makes a written offer on Carmax letterhead to sell a '71 BMW. The offer states
that Carmax will not revoke for two weeks.
1. Can Carmax still revoke its offer?
2. What if the writing provides that Carmax will not revoke the offer for six months?
3. What if Carmax promises not to revoke its offer, but does not state a time period?
, 4. Carmax makes a signed, written o er to sell a '71 BMW. Can Carmax still revoke?
[TRICK Q!] - ANSWER-1. No, not for two weeks. (no signature needed, initials or
letterhead will suffice)
2. Unlike an option, a firm offer has a three month limit.
3. Offer firm for a reasonable time not to exceed three months.
4. Yes, no promise to keep the offeropen.
I offer to sell you a painting. Before accepting, you have an expensive frame custom-
made to fit the painting.
1. Can I still revoke my offer?
2. Subcontractor S submits a bid to do the electrical work on a hotel project for
$250,000. Contractor C relies on S's bid in computing its own bid on the project. Can S
still revoke its offer? - ANSWER-1. Yes, the offer or usually expects to accept first, and
then rely.
2. No, b/c the subcontractor knows that the contractor is going to rely on the offer before
accepting.
1. Sandra Bullock offers me $10,000 to paint her house. Her offer states that it can be
accepted only by painting the house. I start painting the house. Can Sandy still revoke?
2. What if I had ordered paint, but not yet started painting the house? Could Sandy still
revoke? - ANSWER-1. No, once the offeree starts to the do the job, t he offeror can no
longer revoke (unilateral K)
2. No, mere preparation does not make the offer irrevocable under this exception.
(However, it could be foreseeable reliance under the previous exception!)
Monday: I offer to sell Jennifer my Honda.
Tuesday: I mail her a revocation.
Wednesday: Jen accepts my offer.
Thursday: She gets my revocation.
1. Is my revocation effective? - ANSWER-No, revocation is effect when it is received,
NOT when it's mailed
Sandy offers to sell her house to Melissa McCarthy for $500,000. Melissa responds, "I
will only pay $460,000." Sandy refuses.
1. Can Melissa later accept Sandy's offer?
2. What if Melissa responds, "Will you take $460,000?" - ANSWER-1. No, M's
counteroffer terminated S's original offer
2. A question is considered mere bargaining so M can still accept.
Disney sends Bill Clinton an offer to appear in the film, "Waiting to Inhale." Bill agrees
on the condition that he gets top billing.
1. Is there an agreement? - ANSWER-No, a conditional acceptance is NOT an
acceptance. It is a rejection and a counteroffer. (True under both CL and A2)
"Battle of the Forms"
Verified Solutions
#1 APPLICABLE LAW - ANSWER-The Multistate Bar Exam tests on two kinds of
contract law: the common law of contracts and Article 2 of the Uniform Commercial
Code (UCC). Which one applies?
Article 2-Applies to a sale of goods ["goods" are moveable, personal property]
Common Law-Applies to any other contract
1. Mark Fuhrman contracts to buy Whiteacre. Does Article 2 apply?
2. Mrs. Brady hires Lindsay Lohan to babysit the "bunch." Does Article 2 apply?
3. Vin Diesel buys a toupee. Does Article 2 apply?
4. Anthony Weiner buys "The Guide to Texting." The price includes a free class. Article
2 or not? - ANSWER-1. Real property is NOT covered by UCC Art. 2
2. No, sale of services, not goods
3. Yes, SOG=CL. Doesn't matter what the price is or whether the parties are merchants.
A2 applies to EVERY sale of goods.
4. Mixed contract for goods and services. Which element is more important? The Guide
= A2
NOTE:
MBE = Common law
Tex = A2A
You lease a convertible from Avis Rent-a-Car. What law applies? - ANSWER-MBE =
Common law
Tex = A2A
CONTRACT FORMATION - ANSWER-Contract - A legally-enforceable agreement. An
express con- tract is created by the parties' words (oral or written). An implied-in-fact
contract is created by their conduct.
Restitution - Protects against unjust enrichment whenever contract law yields an unfair
result. Restitution is the remedy of last resort.
Chris Hemsworth orally agreed to work for Sony Pictures for ve years for $20 million per
lm. After "Blackhat" bombed, Sony refused to pay him for the lm. The Statute of Frauds
bars Chris from enforcing the contract. Can he recover from Sony in restitution?
,How much can he recover in restitution? - ANSWER-Yes, otherwise it wouldn't be fair.
Sony would have gotten his acting services for free.
NOTE: Reward, contest, or prize = unilateral contract
O/A; look for flaws in agreement process
IHOP advertises in the Daily News: "Incredible offer! Breakfast special for $2.49." Offer?
- ANSWER-No, because ads usually not offers because there's no quantity term.
Flatus Café offers to buy all its requirements of beans from Seller for six years for
$1/can. Seller accepts the café's offer. For the last three years, the café has ordered
1,000 cans a year. Can the café require Seller to deliver 8,000 cans this year? -
ANSWER-Look for sudden spike in requirements contracts.
No, b/c even if beans were ordered in good faith, the buyer cannot take the seller by
surprise!
SECOND STEP OF AGREEMENT PROCESS: WAS THE OFFER TERMINATED? -
ANSWER-Lapse
An offer lapses after a stated term or after a reasonable time has passed.
On March 15, I o er to sell Jennifer Lawrence my Honda for $5,000. My o er does not
contain a termination date. Can Jen accept my o er on December 22? - ANSWER-No,
offer lapsed after a reasonable time.
On January 3, I offer to sell Jennifer my Honda for $5,000. The next day, in the shower,
I exclaim, "I do not want to sell my Honda to Jennifer."
1. Can Jennifer still accept?
2. If I sell my Honda to Lena Dunham on January 4, can Jennifer still accept my offer?
[TRICK Q!]
3. Lena tells Jennifer she bought the Honda from me. Can Jennifer still accept my offer?
- ANSWER-1. Yes
2. Yes, b/c she is not aware of the conduct
3. No, b/c we have offer or conduct and offeree awareness = indirect revocation.
I promise Jennifer I will keep my offer open for a week. 1. Can I revoke?
I promise to keep my offer open for a week if Jennifer pays me $100. She does.
2. Can I still revoke? - ANSWER-1. Yes! Merely promising is NOT enough.
2. No, there was consideration for the option.
RULE: Fallback position. Look first for an option; if no option, then look to firm offer
(SOG)
Carmax makes a written offer on Carmax letterhead to sell a '71 BMW. The offer states
that Carmax will not revoke for two weeks.
1. Can Carmax still revoke its offer?
2. What if the writing provides that Carmax will not revoke the offer for six months?
3. What if Carmax promises not to revoke its offer, but does not state a time period?
, 4. Carmax makes a signed, written o er to sell a '71 BMW. Can Carmax still revoke?
[TRICK Q!] - ANSWER-1. No, not for two weeks. (no signature needed, initials or
letterhead will suffice)
2. Unlike an option, a firm offer has a three month limit.
3. Offer firm for a reasonable time not to exceed three months.
4. Yes, no promise to keep the offeropen.
I offer to sell you a painting. Before accepting, you have an expensive frame custom-
made to fit the painting.
1. Can I still revoke my offer?
2. Subcontractor S submits a bid to do the electrical work on a hotel project for
$250,000. Contractor C relies on S's bid in computing its own bid on the project. Can S
still revoke its offer? - ANSWER-1. Yes, the offer or usually expects to accept first, and
then rely.
2. No, b/c the subcontractor knows that the contractor is going to rely on the offer before
accepting.
1. Sandra Bullock offers me $10,000 to paint her house. Her offer states that it can be
accepted only by painting the house. I start painting the house. Can Sandy still revoke?
2. What if I had ordered paint, but not yet started painting the house? Could Sandy still
revoke? - ANSWER-1. No, once the offeree starts to the do the job, t he offeror can no
longer revoke (unilateral K)
2. No, mere preparation does not make the offer irrevocable under this exception.
(However, it could be foreseeable reliance under the previous exception!)
Monday: I offer to sell Jennifer my Honda.
Tuesday: I mail her a revocation.
Wednesday: Jen accepts my offer.
Thursday: She gets my revocation.
1. Is my revocation effective? - ANSWER-No, revocation is effect when it is received,
NOT when it's mailed
Sandy offers to sell her house to Melissa McCarthy for $500,000. Melissa responds, "I
will only pay $460,000." Sandy refuses.
1. Can Melissa later accept Sandy's offer?
2. What if Melissa responds, "Will you take $460,000?" - ANSWER-1. No, M's
counteroffer terminated S's original offer
2. A question is considered mere bargaining so M can still accept.
Disney sends Bill Clinton an offer to appear in the film, "Waiting to Inhale." Bill agrees
on the condition that he gets top billing.
1. Is there an agreement? - ANSWER-No, a conditional acceptance is NOT an
acceptance. It is a rejection and a counteroffer. (True under both CL and A2)
"Battle of the Forms"
