ID Bar Contracts 1 — Questions and Answers
Question 1: Under the common law of contracts applied on the Idaho Bar Exam, which of the following is required for a valid contract?
- Offer, acceptance, consideration, and mutual assent (Correct answer)
- Written agreement signed by both parties
- Notarization and witnesses
- Government approval
Correct answer: Offer, acceptance, consideration, and mutual assent
A valid contract requires offer, acceptance, consideration, and mutual assent (meeting of the minds) — all fundamental common law elements tested on the bar exam.
Question 2: Which of the following is a valid form of consideration?
- A promise to perform a pre-existing legal duty
- A past act already completed before the promise was made
- A bargained-for exchange that confers a benefit or imposes a detriment (Correct answer)
- A moral obligation to repay a gift
Correct answer: A bargained-for exchange that confers a benefit or imposes a detriment
Consideration requires a bargained-for exchange that either confers a benefit on the promisor or imposes a detriment on the promisee.
Question 3: Under the mirror image rule, an acceptance that adds new terms is treated as:
- A valid acceptance with the additional terms incorporated
- A counteroffer that rejects the original offer (Correct answer)
- A request for clarification
- Void as a matter of law
Correct answer: A counteroffer that rejects the original offer
Under common law's mirror image rule, an acceptance that varies any term of the offer is treated as a counteroffer, rejecting the original offer.
Question 4: Under Article 2 of the UCC as applicable on the Idaho Bar Exam, a contract for the sale of goods for $500 or more must generally be:
- Notarized
- In writing and signed by the party to be charged (Correct answer)
- Witnessed by two people
- Approved by a court
Correct answer: In writing and signed by the party to be charged
UCC § 2-201 (the statute of frauds for goods) requires contracts for the sale of goods priced at $500 or more to be in a writing signed by the party against whom enforcement is sought.
Question 5: Which doctrine allows a party to enforce a promise even without consideration when the party has reasonably relied on the promise to their detriment?
- Promissory estoppel (Correct answer)
- Quasi-contract
- Accord and satisfaction
- Novation
Correct answer: Promissory estoppel
Promissory estoppel (detrimental reliance) allows enforcement of a promise when a party reasonably relies on it to their detriment and injustice can only be avoided by enforcement.
Question 6: Under the common law perfect tender rule's analog for services contracts, a material breach by one party generally:
- Allows the non-breaching party to suspend performance and sue for damages (Correct answer)
- Requires the non-breaching party to complete performance before suing
- Voids the contract from inception
- Has no legal effect unless written notice is given
Correct answer: Allows the non-breaching party to suspend performance and sue for damages
A material breach discharges the non-breaching party from any further duty to perform and entitles that party to sue for total breach damages.
