Contract Questions Always On MBE - Review for MO Bar Exam Questions With Verified Answers.

Contract Questions Always On MBE - Review for MO Bar Exam Questions With Verified Answers. Contract Issues Always Tested on MBE 1. Where P gets an unrequested benefit and the ∆ promises to give it ≠ consideration (not consideration). the hypo was where P found stray dog, put ad in paper, ∆ (dog owner) contacted P who then returned the dog to ∆. ∆ of offered to give P a reward, but P refused. Later P changes his mind and wants and asks for the reward and ∆ refused to pay P. P sued ∆ for breach. - answerP will not recover b/c no consideration. -there was no bargained for exchange b/c a benefit had already been given or performed before the promise was made. Contract Issues Always Tested on MBE 2. Promise to do something the party is legally allowed to do = consideration. facts will be a unilateral K (acceptance only by performance) where a relative or friend promises to pay the other to quit smoking, lose weight, stop using drugs. - answer•thus a promise to pay P if she quits smoking for a year is enforceable. (the K is not illusory) but, a promise to do something that the party is not legally allowed to do is not consideration. • thus a promise to pay P if she quits doing cocaine is not enforceable for lack of consideration. Contract Issues Always Tested on MBE 3. Merchants FIRM OFFER? - answera merchants promise to keep an offer open is enforceable for up to 3 months if: -in writing, and -signed by the party making the offer (letterhead = signature) • no consideration req'd (cf, C/law option k). • no detrimental reliance req'd. Contract Issues Always Tested on MBE 4. merchant promises in writing and signed to keep the offer open or not to revoke for 6 months. How long is the firm offer open for? - answer3 MONTHS (reasonable time not to exceed 3 months) Contract Issues Always Tested on MBE 5. Merchant makes a signed, written offer to sell a 1971 BMW. Can merchant revoke? - answerYES, no promise to keep open or not to revoke. Contract Issues Always Tested on MBE 6. REQUIREMENT contracts (UCC) ex: Merchant offers to buy all its requirements of rice from seller for two years for $10 a bag. - answerRequirement contracts are enforceable as long as party uses good faith in assessing his requirements. UCC allows quantity to be measured by buyer's needs or requirements. *watch out for sudden increases in requirements. ex: for last 3 years Buyer ordered 100 bags of rice, then suddenly orders 500 bags of rice. Can buyer require seller to deliver 500 bags this year? NO, even if acted in good faith, Buyer cannot take Seller by surprise. Contract Issues Always Tested on MBE 7. Acceptance can be implied through conduct. test: would reasonable person conclude they accepted. - answerAcceptance can be IMPLIED through CONDUCT. Contract Issues Always Tested on MBE 8. Counteroffer is a rejection of the original offer. -an offer terminates when the offeree rejects it. - answerwhile a counteroffer is a rejection of the original offer, mere bargaining is not a rejection. * MERE BARGAINING by the offeree is NOT a counteroffer, not a rejection of the offer. Contract Issues Always Tested on MBE 9. Sam offers to sell whiteacre to Patty for $400k, Patty says 'I will only pay $350k.' Sam refuses. Can Patty later accept Sam's offer to buy whiteacre for $400k? - answerNO. - P made a counteroffer which acts as a rejection of Sam's offer. Contract Issues Always Tested on MBE 10. Sam offers to sell whiteacre to Patty for $400k, Patty says 'will you take $350?' Sam refuses. Can Patty later accept Sam's offer to buy whiteacre for $400k? - answerYES. - 'mere bargaining' is not a rejection of the offer. Contract Issues Always Tested on MBE 11. Battle of the Forms (UCC) *no mirror image rule under the UCC, thus an offeree's adding or changing a term does not prevent acceptance under the UCC. - answerRULES: 1) if offeree accepts the offer and makes a MATERIAL change/addition to the terms = K under original terms. 2) if offeree accepts w/out material change and the parties are not merchants = K under original terms. 3) **if offeree accepts w/ nonmaterial change and both parties are merchants the change is incorporated into the K if the offeror doesn't object w/in a reasonable time. Contract Issues Always Tested on MBE 12. An offeree's term is included only if: - answera) both parties are MERCHANTS, b) NON-material change/addition, c) no objection w/in a REASONABLE TIME *if offeror objects to the minor change w/in a reasonable time = K under original terms. Contract Issues Always Tested on MBE 13. What is a 'material change' regarding whether