BARBRI MBE CORE EXAM MANUAL UPDATED
QUESTIONS AND ANSWERS RATED A+
✔✔What are the limited circumstances for a unilateral K? - ✔✔1. Offeror clearly
(unambiguously) indicated that completion of performance is the only manner of
acceptance
2. Offer to the public (EX: reward offer)
✔✔Void Contract - ✔✔A contract having no legal force or binding effect.
(EX: an agreement to commit a crime)
✔✔Voidable Contract - ✔✔A contract that may be legally avoided at the option of one or
both of the parties (EX: infancy or mental illness)
✔✔Unenforceable Contract - ✔✔A contract in which the essential elements to create a
valid contract are met but there is some legal defense to the enforcement of the contract
(EX: Statute of Limitations, Statute of Frauds, etc.)
✔✔Mutual Assent - ✔✔"meeting of the minds" --> one party proposes, the other party
accepts (objective measure)
✔✔Offer - ✔✔Communication (words or actions) creating reasonable expectation in the
offeree that the offeror is willing to enter into a contract on the offered terms
✔✔What must a communication have to be part of the offer? - ✔✔Promise, undertaking,
or commitment to enter into a contract (must be an intent to enter)
1. Language ("I offer", "I promise"; NOT "I quote,", "I am asking $30 for", or "I would
consider selling")
2. Surrounding Circumstances ('statements made in jest' = reasonably understood it will
have no legal affect)
3. Prior Practice and Relationship of the Parties
4. Method of Communication (ads are usually invitations to offer)
5. Industry Custom in whether proposal qualifies as an offer
✔✔What terms are essential in the offer? - ✔✔1. Identify of offeree/class
2. Subject Matter (courts will imply, reasonable terms, if these nonessential terms are
not in the offer)
- Real Estate = description of land & price
- Sale of Goods = quantity terms
(Output = ALL the goods the party grows or makes)
(Requirement = ALL the goods the party needs)
- Services = description of the work being done
Employment = if duration of the employment is not specified, the offer, if accepted, is
construed as creating a contract terminable at the will of either party
***if agreement does not specify a time, the law implies within a reasonable time***
, 3. Price to be Paid
✔✔Termination - ✔✔Ending of an offer by either party
✔✔How does an offeror terminate the offer? - ✔✔Revocation --> terminates offeree's
power to accept if communicated BEFORE offeree accepts (effective when received)
1. Direct
2. Indirect = effectively terminated if offeree indirectly receives (i) correct info, (ii) from a
reliable source, (iii) offeror's actions indicate to a reasonable person that the offeror no
longer wishes to make the offer
✔✔What limits an offeror's power to revoke an offer? (aka irrevocable offers) - ✔✔1.
Option Ks
2. Merchant's Firm Offer (art. 2)
3. Detrimental Reliance
4. Beginning Performance in Response to True Unilateral K Offer
✔✔Option Contract - ✔✔Offeror agrees to keep offer open for a certain amount of time
✔✔Merchant's Firm Offer (sale of goods ONLY) - ✔✔Promise by merchant to keep offer
open without consideration
1. Merchant
2. Offers to buy or sell goods w a signed writing
3. Writing gives assurances that it will be held open
✔✔Detrimental Reliance - ✔✔The offeror could reasonably expect that the offeree
would rely to his detriment on the offer. Offer will be irrevocable as an option K for a
reasonable period of time
(EX: Subcontractor's bid - incorporating bid in overall bid - detrimentally relied on
subcontractor's bid = irrevocable)
✔✔Beginning performance of unilateral contract - ✔✔Accepted by performance, cannot
be revoked
- does not apply when the offeree is only preparing to perform, although substantial
preparation must constitute detrimental reliance
✔✔How does an offeree terminate an offer? - ✔✔1. Rejection
2. Rejection by Conditional Acceptance
3. Lapse
4. Operation of Law
✔✔Rejection - ✔✔Effective when received by the offeror
1. Express/Direct = literally says NO --> kills the offer
2. Counteroffer = response to offer that rejects the offer but proposes a different deal
QUESTIONS AND ANSWERS RATED A+
✔✔What are the limited circumstances for a unilateral K? - ✔✔1. Offeror clearly
(unambiguously) indicated that completion of performance is the only manner of
acceptance
2. Offer to the public (EX: reward offer)
✔✔Void Contract - ✔✔A contract having no legal force or binding effect.
(EX: an agreement to commit a crime)
✔✔Voidable Contract - ✔✔A contract that may be legally avoided at the option of one or
both of the parties (EX: infancy or mental illness)
✔✔Unenforceable Contract - ✔✔A contract in which the essential elements to create a
valid contract are met but there is some legal defense to the enforcement of the contract
(EX: Statute of Limitations, Statute of Frauds, etc.)
✔✔Mutual Assent - ✔✔"meeting of the minds" --> one party proposes, the other party
accepts (objective measure)
✔✔Offer - ✔✔Communication (words or actions) creating reasonable expectation in the
offeree that the offeror is willing to enter into a contract on the offered terms
✔✔What must a communication have to be part of the offer? - ✔✔Promise, undertaking,
or commitment to enter into a contract (must be an intent to enter)
1. Language ("I offer", "I promise"; NOT "I quote,", "I am asking $30 for", or "I would
consider selling")
2. Surrounding Circumstances ('statements made in jest' = reasonably understood it will
have no legal affect)
3. Prior Practice and Relationship of the Parties
4. Method of Communication (ads are usually invitations to offer)
5. Industry Custom in whether proposal qualifies as an offer
✔✔What terms are essential in the offer? - ✔✔1. Identify of offeree/class
2. Subject Matter (courts will imply, reasonable terms, if these nonessential terms are
not in the offer)
- Real Estate = description of land & price
- Sale of Goods = quantity terms
(Output = ALL the goods the party grows or makes)
(Requirement = ALL the goods the party needs)
- Services = description of the work being done
Employment = if duration of the employment is not specified, the offer, if accepted, is
construed as creating a contract terminable at the will of either party
***if agreement does not specify a time, the law implies within a reasonable time***
, 3. Price to be Paid
✔✔Termination - ✔✔Ending of an offer by either party
✔✔How does an offeror terminate the offer? - ✔✔Revocation --> terminates offeree's
power to accept if communicated BEFORE offeree accepts (effective when received)
1. Direct
2. Indirect = effectively terminated if offeree indirectly receives (i) correct info, (ii) from a
reliable source, (iii) offeror's actions indicate to a reasonable person that the offeror no
longer wishes to make the offer
✔✔What limits an offeror's power to revoke an offer? (aka irrevocable offers) - ✔✔1.
Option Ks
2. Merchant's Firm Offer (art. 2)
3. Detrimental Reliance
4. Beginning Performance in Response to True Unilateral K Offer
✔✔Option Contract - ✔✔Offeror agrees to keep offer open for a certain amount of time
✔✔Merchant's Firm Offer (sale of goods ONLY) - ✔✔Promise by merchant to keep offer
open without consideration
1. Merchant
2. Offers to buy or sell goods w a signed writing
3. Writing gives assurances that it will be held open
✔✔Detrimental Reliance - ✔✔The offeror could reasonably expect that the offeree
would rely to his detriment on the offer. Offer will be irrevocable as an option K for a
reasonable period of time
(EX: Subcontractor's bid - incorporating bid in overall bid - detrimentally relied on
subcontractor's bid = irrevocable)
✔✔Beginning performance of unilateral contract - ✔✔Accepted by performance, cannot
be revoked
- does not apply when the offeree is only preparing to perform, although substantial
preparation must constitute detrimental reliance
✔✔How does an offeree terminate an offer? - ✔✔1. Rejection
2. Rejection by Conditional Acceptance
3. Lapse
4. Operation of Law
✔✔Rejection - ✔✔Effective when received by the offeror
1. Express/Direct = literally says NO --> kills the offer
2. Counteroffer = response to offer that rejects the offer but proposes a different deal
