Contracts Flashcards
7 cards from real NE BAR practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Contracts flashcards as text
Sam agrees to mow Linda's lawn for $100, but Linda later refuses to pay. Sam's most straightforward remedy is:
Answer: Expectation damages equal to the contract price of $100
Expectation damages place the non-breaching party in the position they would have been in had the contract been performed, which here equals the promised $100.
An anticipatory repudiation occurs when:
Answer: A party unequivocally indicates before the due date that it will not perform
Anticipatory repudiation is an unequivocal statement or conduct by a party before performance is due indicating it will not perform its contractual obligations.
The parol evidence rule generally prohibits introduction of:
Answer: Prior or contemporaneous oral agreements that contradict a fully integrated written contract
The parol evidence rule bars evidence of prior or contemporaneous oral (or written) agreements that would vary or contradict the terms of a fully integrated written contract.
Under which doctrine may a court refuse to enforce a contract whose terms are unreasonably favorable to one party and the other party had no meaningful choice?
Answer: Unconscionability
Unconscionability doctrine allows courts to refuse to enforce or to limit oppressive contract terms when there is both procedural and substantive unconscionability.
Alice contracts to buy Bob's house. Before closing, a tornado destroys the house. Assuming risk of loss had not yet passed, which doctrine would most likely excuse Alice's obligation to perform?
Answer: Impossibility of performance
Impossibility of performance excuses a party's duties when an unexpected event makes performance objectively impossible, such as the destruction of the specific subject matter.
A third-party beneficiary's rights vest when:
Answer: The beneficiary learns of and assents to the contract, changes position in reliance, or brings suit
A third-party beneficiary's rights vest when the beneficiary learns of the contract and assents, materially changes position in reliance on it, or files suit to enforce it.
Maria agrees to buy Carlos's car for $5,000 but later discovers it has a hidden engine defect Carlos knew about but did not disclose. Maria can most likely avoid the contract on the basis of:
Answer: Fraudulent misrepresentation
Carlos's knowing concealment of a material defect constitutes fraudulent misrepresentation (or fraudulent concealment), which entitles Maria to rescind the contract.