1 | Page
MBE 35 contracts questions Questions and Correct
Answers/ Latest Update / Already Graded
A buyer and a seller entered into a written contract for the sale of a copy
machine, using the same form contract that they had used a number of times in
the past. The contract stated that payment was due 30 days after delivery and
provided that the writing contained the complete and exclusive statement of the
parties' agreement. On several past occasions, the buyer had taken a 5% discount
from the contract price when paying within 10 days of delivery, and the seller had
not objected. On this occasion, when the buyer took a 5% discount for paying
within 10 days, the seller objected because his profit margin on this particular
machine was smaller than on his other machines.
If the seller sues the buyer for breach of contract, may the buyer introduce
evidence that the 5% discount was a term of the agreement?
Ans: (c) Yes, because evidence of course of dealing is admissible even if the
writing contains the complete and exclusive agreement of the parties
A farmer contracted to sell 100,000 bushels of wheat to a buyer. When the
wheat arrived at the destination, the buyer discovered that the farmer had
delivered only 96,000 bushels. The buyer sued the farmer for breach of contract.
At the trial of the case, the court found that the written contract was intended as
a complete and exclusive statement of the terms of the agreement. The farmer
offered to prove that in the wheat business, a promise to deliver a specified
quantity is considered to be satisfied if the delivered quantity is within 5% of the
specified quantity. The buyer objected to the offered evidence.
Is the court likely to admit the evidence offered by the farmer?
Ans: (D) Yes, because the offered evidence explains or supplements the
agreement by usage of trade
Responding to a county's written advertisement for bids, a tire company was the
successful bidder for the sale of tires to a county for its vehicles. The company
© 2025/ 2026 | ® All rights reserved
, 2 | Page
and the county entered into a signed, written agreement that specified, "It is
agreed that the company will deliver all tires required by this agreement to the
county, in accordance with the attached bid form and specifications, for a one-
year period beginning September 1, 2019." Attached to the agreement was a copy
of the bid form and specifications. In the written advertisement to which the
company had responded, but not in the bid form, the county had stated, "Multiple
awards may be issued if they are in the best interests of the county." No definite
quantity of tires to be bought by the county from the company was specified in
any of these documents.
In January 2020, the company learned that the county was buying some of its tires
from one of the company
Ans: (D) Yes, because the provision in the written agreement, "all tires required
by this agreement," is ambiguous.
A farmer who wanted to sell her land received a letter from a developer that
stated, "I will pay you $1,100 an acre for your land." The farmer's letter of reply
stated, "I accept your offer." Unbeknownst to the farmer, the developer had
intended to offer only $1,000 per acre but had mistakenly typed "$1,100." As
both parties knew, comparable land in the vicinity had been selling at prices
between $1,000 and $1,200 per acre.
Which of the following states the probable legal consequences of the
correspondence between the parties?
Ans: (B) There is a contract formed at a price of $1100 per acre.
A breeder bought a two-month-old registered boar at auction from a seller for
$800. No express warranty was made. Fifteen months later, tests by experts
proved conclusively that the boar had been born incurably sterile. If this had been
known at the time of the sale, the boar would have been worth no more than
$100. In an action by the breeder against the seller to avoid the contract and
recover the price paid, the parties stipulate that, as both were and had been
© 2025/ 2026 | ® All rights reserved
, 3 | Page
aware, the minimum age at which the fertility of a boar can be determined is
about 12 months.
Which of the following will the court probably decide?
Ans: (D) The Seller wins, because the breeder assumed the risk of the boar's
sterility
On June 1, an appliance manufacturer telephoned a supplier to determine
whether the supplier could provide 300 washing machine motors of a particular
model by October 1. The supplier offered to do so at a price of $300 per motor
(a total price of $90,000). The manufacturer's representative said, "Deal." The
next day the manufacturer's representative sent the supplier an unsigned note on
company letterhead that stated, "I am happy that you are going to supply us with
the motors. I will call you soon to talk about another order." The manufacturer
then sent catalogs to its regular customers advertising washing machines that
included the specified motors.
The manufacturer did not hear from the supplier until July 1, when the supplier
called to say that it would be unable to supply the motors because it was no
longer carrying that model. At that time, the manufacturer had received no
orders for the machines with the speci
Ans: (D) Yes, because there is no writing that contains the quantity term of the
contract.
On March 15, in a writing signed by both parties, a manufacturer agreed to sell
40,000 pens at $1 each to a retailer, delivery to be made in two equal installments
on April 1 and May 1. The contract was silent as to the time of payment, but on
March 25 the two parties orally agreed that the entire purchase price was to be
paid on delivery of the second installment.
On April 1, the manufacturer delivered 20,000 pens, and the retailer accepted
them. The manufacturer then demanded payment of $20,000. When the retailer
refused to make the payment, the manufacturer sued the retailer for breach of
© 2025/ 2026 | ® All rights reserved
MBE 35 contracts questions Questions and Correct
Answers/ Latest Update / Already Graded
A buyer and a seller entered into a written contract for the sale of a copy
machine, using the same form contract that they had used a number of times in
the past. The contract stated that payment was due 30 days after delivery and
provided that the writing contained the complete and exclusive statement of the
parties' agreement. On several past occasions, the buyer had taken a 5% discount
from the contract price when paying within 10 days of delivery, and the seller had
not objected. On this occasion, when the buyer took a 5% discount for paying
within 10 days, the seller objected because his profit margin on this particular
machine was smaller than on his other machines.
If the seller sues the buyer for breach of contract, may the buyer introduce
evidence that the 5% discount was a term of the agreement?
Ans: (c) Yes, because evidence of course of dealing is admissible even if the
writing contains the complete and exclusive agreement of the parties
A farmer contracted to sell 100,000 bushels of wheat to a buyer. When the
wheat arrived at the destination, the buyer discovered that the farmer had
delivered only 96,000 bushels. The buyer sued the farmer for breach of contract.
At the trial of the case, the court found that the written contract was intended as
a complete and exclusive statement of the terms of the agreement. The farmer
offered to prove that in the wheat business, a promise to deliver a specified
quantity is considered to be satisfied if the delivered quantity is within 5% of the
specified quantity. The buyer objected to the offered evidence.
Is the court likely to admit the evidence offered by the farmer?
Ans: (D) Yes, because the offered evidence explains or supplements the
agreement by usage of trade
Responding to a county's written advertisement for bids, a tire company was the
successful bidder for the sale of tires to a county for its vehicles. The company
© 2025/ 2026 | ® All rights reserved
, 2 | Page
and the county entered into a signed, written agreement that specified, "It is
agreed that the company will deliver all tires required by this agreement to the
county, in accordance with the attached bid form and specifications, for a one-
year period beginning September 1, 2019." Attached to the agreement was a copy
of the bid form and specifications. In the written advertisement to which the
company had responded, but not in the bid form, the county had stated, "Multiple
awards may be issued if they are in the best interests of the county." No definite
quantity of tires to be bought by the county from the company was specified in
any of these documents.
In January 2020, the company learned that the county was buying some of its tires
from one of the company
Ans: (D) Yes, because the provision in the written agreement, "all tires required
by this agreement," is ambiguous.
A farmer who wanted to sell her land received a letter from a developer that
stated, "I will pay you $1,100 an acre for your land." The farmer's letter of reply
stated, "I accept your offer." Unbeknownst to the farmer, the developer had
intended to offer only $1,000 per acre but had mistakenly typed "$1,100." As
both parties knew, comparable land in the vicinity had been selling at prices
between $1,000 and $1,200 per acre.
Which of the following states the probable legal consequences of the
correspondence between the parties?
Ans: (B) There is a contract formed at a price of $1100 per acre.
A breeder bought a two-month-old registered boar at auction from a seller for
$800. No express warranty was made. Fifteen months later, tests by experts
proved conclusively that the boar had been born incurably sterile. If this had been
known at the time of the sale, the boar would have been worth no more than
$100. In an action by the breeder against the seller to avoid the contract and
recover the price paid, the parties stipulate that, as both were and had been
© 2025/ 2026 | ® All rights reserved
, 3 | Page
aware, the minimum age at which the fertility of a boar can be determined is
about 12 months.
Which of the following will the court probably decide?
Ans: (D) The Seller wins, because the breeder assumed the risk of the boar's
sterility
On June 1, an appliance manufacturer telephoned a supplier to determine
whether the supplier could provide 300 washing machine motors of a particular
model by October 1. The supplier offered to do so at a price of $300 per motor
(a total price of $90,000). The manufacturer's representative said, "Deal." The
next day the manufacturer's representative sent the supplier an unsigned note on
company letterhead that stated, "I am happy that you are going to supply us with
the motors. I will call you soon to talk about another order." The manufacturer
then sent catalogs to its regular customers advertising washing machines that
included the specified motors.
The manufacturer did not hear from the supplier until July 1, when the supplier
called to say that it would be unable to supply the motors because it was no
longer carrying that model. At that time, the manufacturer had received no
orders for the machines with the speci
Ans: (D) Yes, because there is no writing that contains the quantity term of the
contract.
On March 15, in a writing signed by both parties, a manufacturer agreed to sell
40,000 pens at $1 each to a retailer, delivery to be made in two equal installments
on April 1 and May 1. The contract was silent as to the time of payment, but on
March 25 the two parties orally agreed that the entire purchase price was to be
paid on delivery of the second installment.
On April 1, the manufacturer delivered 20,000 pens, and the retailer accepted
them. The manufacturer then demanded payment of $20,000. When the retailer
refused to make the payment, the manufacturer sued the retailer for breach of
© 2025/ 2026 | ® All rights reserved
