Contracts Mbe Questions

8/13/2019 Contracts Mbe Questions

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CONTRACTS MBE QUESTIONS

2. On August 1, Geriatrics, Inc., operating a !i"eti#e care $o#e "or t$e e!%er!&, a%#itte%O$!ster, '$o 'as () &ears o!%, "or a tria! perio% o" t'o #ont$s. On Septe#*er 2+,O$!ster an% Geriatrics entere% into a 'ritten !i"eti#e care contract 'it$ an e""ectieco##ence#ent %ate o" Octo*er 1. T$e "u!! contract price 'as -2,, '$ic$, asre/uire% *& t$e ter#s o" t$e contract, O$!ster prepai% to Geriatrics on Septe#*er 2+.O$!ster %ie% o" a $eart attac0 on Octo*er 2.

In a restitutionar& action, can t$e a%#inistratri o" O$!sters estate, a suriing sister,recoer on *e$a!" o" t$e estate eit$er a!! or part o" t$e -2, pai% to Geriatrics onSepte#*er 2+3

4A5 6es, *ecause Geriatrics 'ou!% ot$er'ise *e un7ust!& enric$e% at O$!stersepense.

4B5 6es, un%er t$e %octrine o" "rustration o" purpose.4C5 No, *ecause O$!sters !i"e span an% t$e %uration o" Geriatrics co##it#ent to $i#

'as a ris0 assu#e% *& *ot$ parties.485 No, *ut on!& i" Geriatrics can s$o' t$at *et'een Septe#*er 2+ an% O$!sters

%eat$ it re7ecte%, *ecause o" its co##it#ent to O$!ster, an app!ication "or !i"eti#e

care "ro# anot$er e!%er!& person.

Questions (+9(: are *ase% on t$e "o!!o'ing "act situation.

Spen%er o'e% Mi%as -1,, p!us interest at (; unti! pai%, on a !ong9oer%ue pro#issor&note, co!!ection o" '$ic$ 'ou!% *eco#e *arre% *& t$e statute o" !i#itations on au! $a% starte% to paint on t$e"o!!o'ing Satur%a& #orning, $e cou!% $ae "inis$e% *e"ore Sun%a& eening. @o'eer, $esta&e% $o#e t$at Satur%a& #orning to 'atc$ t$e "ina! ga#e o" t$e or!% Series on T,an% %i% not start to paint unti! Satur%a& a"ternoon. B& !ate Satur%a& a"ternoon, >au!


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rea!ie% t$at $e $a% un%eresti#ate% t$e ti#e it 'ou!% ta0e to "inis$ t$e 7o* i" $e continue%to 'or0 a!one. >au! p$one% A!ice at $er $o#e an% accurate!& in"or#e% $er t$at it 'asi#possi*!e to "inis$ t$e 'or0 oer t$e 'ee0en% un!ess $e $ire% a $e!per. @e a!so state%t$at to %o so 'ou!% re/uire an a%%itiona! c$arge o" -2 "or t$e 'or0. A!ice to!% >au! t$ats$e apparent!& $a% no c$oice *ut to pa& '$ateer it ta0es to get t$e 'or0 %one assc$e%u!e%.

>au! $ire% Te% to $e!p "inis$ t$e painting an% pai% Te% -2. A!ice $as o""ere% to pa&>au! -1,. >au! is %e#an%ing -1,2.

@o' #uc$ is >au! !i0e!& to recoer3

4A5 -1, on!&, *ecause A!ice receie% no consi%eration "or $er pro#ise to pa& t$ea%%itiona! su#.

4B5 -1, on!&, *ecause A!ices pro#ise to pa& '$ateer it ta0es is too uncertainto *e en"orcea*!e.

4C5 -1,2, in or%er to preent A!ices un7ust enric$#ent.485 -1,2, *ecause t$e i#possi*i!it& o" >au!s co#p!eting t$e 'or0 a!one %isc$arge%

t$e origina! contract an% a ne' contract 'as "or#e%.

121. ?or t$is /uestion on!&, assu#e t$e "o!!o'ing "acts. >au! co##ence% 'or0 on Satur%aorning, an% $a% "inis$e% $a!" t$e painting *& t$e ti#e $e /uit 'or0 "or t$e %a&. T$atnig$t, 'it$out t$e "au!t o" eit$er part&, t$e o""ice *ui!%ing 'as %estro&e% *& "ire.

$ic$ o" t$e "o!!o'ing is an accurate state#ent3

4A5 Bot$ parties contractua! %uties are %isc$arge%, an% >au! can recoer not$ing"ro# A!ice.

4B5 Bot$ parties contractua! %uties are %isc$arge%, *ut >au! can recoer in /uasi9contract "ro# A!ice.

4C5 On!& >au!s contractua! %ut& is %isc$arge%, *ecause A!ices per"or#ance4paent o" t$e agree% price5 is not i#possi*!e.

48 On!& >au!s contractua! %ut& is %isc$arge%, an% >au! can recoer $is re!iance

%a#ages "ro# A!ice.

1:1. Testator, '$ose nep$e' B&past 'as $is on!& $eir, %ie% !eaing a 'i!! t$at gae $is entireestate to c$arit&. B&past, 0no'ing "u!! 'e!! t$at Testator 'as o" soun% #in% a!! o" $is !i"e,an% $aing no ei%ence to t$e contrar&, neert$e!ess "i!e% a suit contesting Testators 'i!!on t$e groun% t$at Testator 'as inco#petent '$en t$e 'i!! 'as signe%. Craen,Testators eecutor, o""ere% B&past -+, to sett!e t$e suit, an% B&past agree%.

I" Craen t$en repu%iates t$e agree#ent an% t$e "oregoing "acts are proe% or a%#itte%in B&pasts suit against Craen "or *reac$ o" contract, is B&past entit!e% to recoer un%ert$e preai!ing ie'3

4A5 6es, *ecause t$e B&past9Craen agree#ent 'as a *argaine%9"or ec$ange

4B5 6es, *ecause t$e !a' encourages t$e sett!e#ent o" %ispute% c!ai#s.4C5 No, *ecause B&past %i% not *ring t$e 'i!! contest in goo% "ait$.485 No, *ecause an agree#ent to oust t$e court o" its 7uris%iction to %eci%e a 'i!!

contest is contrar& to pu*!ic po!ic&.

1D2. ?or an agree% price o" -2 #i!!ion, Bi!%0o, Inc., contracte% 'it$ enture to %esign an%*ui!% on entures co##ercia! p!ot a 1+9stor& o""ice *ui!%ing. In ecaating "or t$e"oun%ation an% un%ergroun% uti!ities, Bi!%0o encountere% a #assie !a&er o" granite at a%ept$ o" 1+ "eet. B& reasona*!e sa"et& criteria, t$e *ui!%ings "oun%ation re/uire% a#ini#u# ecaation o" 2+ "eet. $en t$e contract 'as #a%e, neit$er enture nor Bi!%0o


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'as a'are o" t$e su*sur"ace granite, "or t$e presence o" '$ic$ neit$er part& $a% $ire% a/ua!i"ie% epert to test.

C!ai#ing accurate!& t$at re#oa! o" enoug$ granite to per#it t$e construction as p!anne%'ou!% cost $i# an a%%itiona! -= #i!!ion an% a pro*a*!e net !oss on t$e contract o" -2#i!!ion, Bi!%0o re"use% to procee% 'it$ t$e 'or0 un!ess enture 'ou!% pro#ise to pa& ana%%itiona! -2.+ #i!!ion "or t$e co#p!ete% *ui!%ing.

I" enture re"uses an% sues Bi!%0o "or *reac$ o" contract, '$ic$ o" t$e "o!!o'ing 'i!! t$ecourt pro*a*!& %eci%e3

4A5 Bi!%0o is ecuse% un%er t$e #o%ern %octrine o" superening i#possi*i!it&, '$ic$inc!u%es seere i#practica*i!it&.

4B5 Bi!%0o is ecuse%, *ecause t$e contract is oi%a*!e on account o" t$e parties#utua! #ista0e concerning an essentia! un%er!&ing "act.

4C5 enture preai!s, *ecause Bi!%0o assu#e% t$e ris0 o" encountering su*sur"acegranite t$at 'as un0no'n to enture.

485 enture preai!s, un!ess su*sur"ace granite 'as preious!& un0no'n an&'$ere int$e icinit& o" entures construction site.

Question 2)

Ro!!e#, an auto#o*i!e retai!er, $a% an a%u!t %aug$ter, Bets&, '$o nee%e% a car in $ere#p!oent *ut $a% on!& -=, 'it$ '$ic$ to *u& one. Ro!!e# 'rote to $er, Gie #e &our-=, an% I!! gie &ou t$e car on our !ot t$at 'e $ae *een using as a %e#onstrator. Bets&t$an0e% $er "at$er an% pai% $i# t$e -=,. As *ot$ Ro!!e# an% Bets& 0ne', t$e %e#onstrator'as reasona*!& 'ort$ -1,. A"ter Bets& $a% pai% t$e -=,, *ut *e"ore t$e car $a% *een%e!iere% to $er, one o" Ro!!e#s sa!es sta"" so!% an% %e!iere% t$e sa#e car to a custo#er "or-1,. Neit$er t$e sa!esperson nor t$e custo#er 'as a'are o" t$e transaction *et'een Ro!!e#an% Bets&.

8oes Bets&, a"ter re7ecting a ten%ere% return o" t$e -=, *& Ro!!e#, $ae an action against $i#"or *reac$ o" contract3

A. 6es, *ecause Ro!!e#s pro#ise 'as supporte% *& *argaine%9"or consi%eration.B. 6es, *ecause Ro!!e#s pro#ise 'as supporte% *& t$e #ora! o*!igation a

"at$er o'es $is c$i!% as to t$e necessities o" #o%ern !i"e.C. No, *ecause t$e paent o" -=, 'as ina%e/uate consi%eration to support

Ro!!e#s pro#ise.8. No, *ecause t$e sa!espersons %e!ier& o" t$e car to t$e custo#er #a%e it

i#possi*!e "or Ro!!e# to per"or#.

Question 2

Foo#is, t$e o'ner an% operator o" a s#a!! *usiness, encourages 'e!!ness on t$e part o" $ise#p!o&ees an% supports arious p$&sica!9"itness progra#s to t$at en%. Fearning t$at one o" $is

e#p!o&ees, Grace"u!, 'as a %e%icate% 7ogger, Foo#is pro#ise% to pa& $er a specia! a'ar% o"-1 i" s$e cou!% an% 'ou!% run one #i!e in !ess t$an si #inutes on t$e "o!!o'ing Satur%a&.Grace"u! t$an0e% $i#, an% %i% in "act run a #i!e in !ess t$an si #inutes on t$e %a& speci"ie%.S$ort!& t$erea"ter, $o'eer, Foo#is %iscoere% t$at "or #ore t$an a &ear Grace"u! $a% *eenrunning at !east one #i!e in !ess t$an si #inutes eer& %a& as a part o" $er persona! "itnessprogra#. @e re"use% to pa& t$e -1.

In an action *& Grace"u! against Foo#is "or *reac$ o" contract, '$ic$ o" t$e "o!!o'ing *estsu##aries t$e pro*a*!e %ecision o" t$e court3


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A. Foo#is 'ins, *ecause it is a co#pe!!ing in"erence t$at Foo#iss pro#ise %i% not in%uceGrace"u! to run t$e speci"ie% #i!e.B. Foo#is 'ins, *ecause Grace"u!s running o" t$e speci"ie% #i!e 'as *ene"icia!, not %etri#enta!,to $er in an& eent.C. Grace"u! 'ins, *ecause running a #i!e in !ess t$an si #inutes is a signi"icant!& %e#an%ingenterprise.8. Grace"u! 'ins, *ecause s$e ran t$e speci"ie% #i!e as re/ueste%, an% $er#oties "or %oing so are irre!eant.

Question 12=

C!ient consu!te% Fa'&er a*out $an%!ing t$e sa!e o" C!ients *ui!%ing, an% as0e%Fa'&er '$at $er !ega! "ee 'ou!% *e. Fa'&er rep!ie% t$at $er usua! c$arge 'as -1 per $our, an%esti#ate% t$at t$e !ega! 'or0 on *e$a!" o" C!ient 'ou!% cost a*out -+, at t$at rate. C!ient sai%,O0a& !ets procee% 'it$ it, an% Fa'&er ti#e!& an% success"u!!& co#p!ete% t$e 'or0. Because o"unepecte% tit!e pro*!e#s, Fa'&er reasona*!& spent D+ $ours on t$e #atter an% s$ort!& t$erea"ter#ai!e% C!ient a *i!! "or -D,+, 'it$ a !etter ite#iing t$e 'or0 per"or#e% an% ti#e spent. C!ientrespon%e% *& a !etter epressing $is goo% "ait$ *e!ie" t$at Fa'&er $a% agree% to a tota! "ee o" no#ore t$an -+,. C!ient enc!ose% a c$ec0 in t$e a#ount o" -+, pa&a*!e to Fa'&er an%conspicuous!& #ar0e%, >aent in "u!! "or !ega! serices in connection 'it$ t$e sa!e o" C!ients

*ui!%ing. 8espite rea%ing t$e >aent in "u!!. . . !anguage, Fa'&er, 'it$out an& notation o"protest or reseration o" rig$ts, en%orse% an% %eposite% t$e c$ec0 to $er *an0 account. T$ec$ec0 'as %u!& pai% *& C!ients *an0. A "e' %a&s !ater, Fa'&er unsuccess"u!!& %e#an%e%paent "ro# C!ient o" t$e -2,+ %i""erence *et'een t$e a#ount o" $er *i!! an% t$e c$ec0, an%no' sues C!ient "or t$at %i""erence.

$at, i" an&t$ing, can Fa'&er recoer "ro# C!ient3

A. Not$ing, *ecause t$e ris0 o" unepecte% tit!e pro*!e#s in a rea! propert&transaction is proper!& a!!oca*!e to t$e se!!ers attorne& an% t$us to Fa'&er int$is case.B. Not$ing, *ecause t$e a#ount o" Fa'&ers "ee 'as %ispute% in goo% "ait$ *& C!ient, an% Fa'&eri#p!ie%!& agree% to an accor% an% satis"action.

C. -2,+, *ecause C!ient agree% to an $our!& rate "or as #an& $ours as t$e 'or0 reasona*!&re/uire%, an% t$e su# o" -+, 'as #ere!& an esti#ate.8. T$e reasona*!e a!ue o" Fa'&ers serices in ecess o" -+,, i" an&,*ecause t$ere 'as no speci"ic agree#ent on t$e tota! a#ount o" Fa'&ers "ee.

Question 1(:

A *urg!ar sto!e Co!!ectas i#pressionist painting a!ue% at -),. Co!!ecta, '$o $a% insure%t$e painting "or -=, 'it$ Artistic Insurance Co., pro#ise% to pa& -2+, to Snoop, a "u!!9ti#e inestigator "or Artistic, i" $e e""ecte% t$e return o" t$e painting to $er in goo% con%ition. B&co#pan& ru!es, Artistic per#its its inestigators to accept an% retain re'ar%s "ro# po!ic&$o!%ers"or t$e recoer& o" insure% propert&. Snoop, *& !ong an% s0i!!"u! %etectie 'or0, recoere% t$epicture an% returne% it un%a#age% to Co!!ecta.

I" Co!!ecta re"uses to pa& Snoop an&t$ing, an% $e sues $er "or -2+,, '$at ist$e pro*a*!e resu!t un%er t$e preai!ing #o%ern ru!e3

A. Co!!ecta 'ins, *ecause Snoop o'e% Artistic a preeisting %ut& to recoer t$epicture i" possi*!e.B. Co!!ecta 'ins, *ecause Artistic, Snoops e#p!o&er, $a% a preeisting %ut& toreturn t$e recoere% painting to Co!!ecta.C. Snoop 'ins, *ecause Co!!ecta 'i!! *ene"it #ore "ro# return o" t$e -),painting t$an "ro# receiing t$e -=, po!ic& procee%s.


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8. Snoop 'ins, *ecause t$e preeisting %ut& ru!e %oes not app!& i" t$e pro#isees4Snoops5 %ut& 'as o'e% to a t$ir% person.

Questions 1(91 are *ase% on t$e "o!!o'ing "act situation.

Sue Starr, a #inor *ot$ in "act an% appearance, *oug$t on cre%it an% too0 %e!ier& o" a te!escope"ro# =9&ear9o!% >au! >ris# "or an agree% price o" -1. Upon reac$ing $er #a7orit& soont$erea"ter, Starr encountere% >ris# an% sai%, I a# sorr& "or not $aing pai% &ou t$at -1 "or t$ete!escope '$en t$e #one& 'as %ue, *ut I "oun% out it 'as on!& 'ort$ -D+. So I no' pro#ise topa& &ou -D+. Starr su*se/uent!& repu%iate% t$is pro#ise an% re"use% to pa& >ris# an&t$ing.

Question 1(

In an action "or *reac$ o" contract *& >ris# against Starr, >ris#s pro*a*!e recoer& is

A. not$ing, *ecause Starr 'as a #inor at t$e ti#e o" t$e origina! transaction.B. not$ing, *ecause t$ere 'as no consi%eration "or t$e pro#ise #a%e *&Starr a"ter reac$ing #a7orit&.C. -D+.8. -1.

Questions )99+ are *ase% on t$e "o!!o'ing "act situation.

Tenant rente% a co##ercia! *ui!%ing "ro# Fan%!or%, an% operate% a *usiness in it. T$e *ui!%ings!arge "ront 'in%o' 'as s#as$e% *& an%a!s si #ont$s *e"ore epiration o" t$e Tenant9Fan%!or%!ease. Tenant, '$o 'as o*!igate% t$ereun%er to e""ect an% pa& "or repairs in suc$ cases, pro#pt!&contracte% 'it$ G!aier to rep!ace t$e 'in%o' "or -2,, %ue = %a&s a"ter satis"actor&co#p!etion o" t$e 'or0. Fan%!or% 'as t$en una'are o" t$e Tenant9G!aier contract. G!aier 'asa'are t$at t$e *ui!%ing 'as un%er !ease, *ut %ea!t entire!& 'it$ Tenant. Sit& %a&s a"ter G!aierssatis"actor& co#p!etion o" t$e 'in%o' rep!ace#ent, an% prior to t$e epiration o" Tenants !ease,Tenant, t$en inso!ent, cease% %oing *usiness an% acate% t$e *ui!%ing. In so %oing, Tenant"or"eite% un%er t$e !ease proisions its rig$t to t$e return o" a -2, securit& %eposit 'it$Fan%!or%. T$e %eposit $a% *een re/uire%, $o'eer, "or t$e epress purpose 4as state% in t$e

!ease5 o" coering an& %a#age to t$e !ease% propert& ecept or%inar& 'ear an% tear. T$e on!&suc$ %a#age occurring %uring Tenants occupanc& 'as t$e s#as$e% 'in%o'. G!aiers -2,*i!! "or t$e 'in%o' rep!ace#ent is '$o!!& unpai%.

Question )

Assu#ing t$at G!aier $as no re#e%& /uasi in re# un%er t$e re!eant state #ec$anics !ienstatute, '$ic$ o" t$e "o!!o'ing 'ou!% proi%e G!aiers *est c$ance o" an e""ectie re#e%& inpersona# against Fan%!or%3

A. An action in /uasi contract "or t$e reasona*!e a!ue o" a *ene"it uno""icious!& an% non9gratuitous!& con"erre% on Fan%!or%.B. An action *ase% on pro#issor& estoppe!.

C. An action *ase% on an i#p!ie%9in9"act contract.8. An action as t$ir%9part& inten%e% *ene"iciar& o" t$e Tenant9Fan%!or% !ease.

Question +

?or t$is /uestion on!&, assu#e t$e "o!!o'ing "acts. Upon acating t$e *ui!%ing, Tenant #ai!e% a-1, c$ec0 to G!aier *earing on its "ace t$e "o!!o'ing conspicuous notationH T$is c$ec0 is in"u!! an% "ina! satis"action o" &our -2, 'in%o' rep!ace#ent *i!!. it$out noticing t$is notation,G!aier cas$e% t$e c$ec0 an% no' sues Tenant "or t$e -1, %i""erence. I" Tenants on!&%e"ense is accor% an% satis"action, is Tenant !i0e!& to preai!3


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A. No, *ecause G!aier "ai!e% to notice Tenants notation on t$e c$ec0.B. No, *ecause t$e a#ount o'e% *& Tenant to G!aier 'as !i/ui%ate% an% un%ispute%.C. 6es, *ecause *& cas$ing t$e c$ec0 G!aier i#p!ie%!& agree% to accept t$e -1, as "u!!paent o" its c!ai#.8. 6es, *ecause G!aier "ai!e% to 'rite a reseration9o"9rig$ts notation on t$e c$ec0 *e"orecas$ing it.

Question 1()

Gour#et purc$ase% t$e "ront portion o" t$e !an% nee%e% "or a restaurant $e %esire% to *ui!% an%operate, *ut t$e *ac0 portion 'as t$e su*7ect o" a 'i!! %ispute *et'een @ope an% ?ait$ 4t'osisters5. @opes attorne& a%ise% $er t$at $er c!ai# 'as %ou*t"u!. Gour#et, 0no'ing on!& t$at t$eunreso!e% %ispute eiste%, agree% in a signe% 'riting to pa& @ope -:,, pa&a*!e -1,annua!!&, in ec$ange "or a /uitc!ai# %ee% 4a %ee% containing no 'arranties5 "ro# @ope, '$opro#pt!& eecute% suc$ a %ee% to Gour#et an% receie% Gour#ets "irst annua! paent. S$ort!&t$erea"ter, t$e pro*ate court $an%e% %o'n a %ecision in ?ait$s "aor, ru!ing t$at @ope $a% nointerest in t$e !an%. T$is %ecision $as *eco#e "ina!. Gour#et su*se/uent!& %e"au!te% '$en $issecon% annua! insta!!#ent ca#e %ue.

In an action against Gour#et "or *reac$ o" contract, @ope 'i!! pro*a*!&

A. !ose, *ecause s$e 'as a'are at t$e ti#e o" t$e agree#ent 'it$ Gour#et t$at $er c!ai# to t$epropert& /uit9c!ai#e% 'as %ou*t"u!.B. !ose, *ecause @ope su""ere% no !ega! %etri#ent in eecuting t$e /uitc!ai# %ee%.C. 'in, *ecause Gour#et *argaine% "or an% receie% in ec$ange a /uitc!ai# %ee% "ro# @ope.8. 'in, *ecause Gour#et, *& pa&ing t$e "irst -1, insta!!#ent, is estoppe% to %en& t$at $isagree#ent 'it$ @ope is an en"orcea*!e contract.

Question 1:

Fo&a!, age% :, '$o $a% no p!ans "or ear!& retire#ent, $a% 'or0e% "or Mutate, Inc., "or 2 &earsas a #anageria! e#p!o&ee9at9'i!! '$en $e $a% a conersation 'it$ t$e co#pan&s presi%ent,

George Mutant, a*out Fo&a!s post9retire#ent goa! o" etensie trae! aroun% t$e Unite% States. A#ont$ !ater, Mutant $an%e% Fo&a! a 'ritten, signe% reso!ution o" t$e co#pan&s Boar% o" 8irectorsstating t$at '$en an% i" Fo&a! s$ou!% %eci%e to retire, at $is option, t$e co#pan&, in recognition o"$is past serice, 'ou!% pa& $i# a -2,9per #ont$ !i"eti#e pension. 4T$e co#pan& $a% noregu!arie% retire#ent p!an "or at9'i!! e#p!o&ees.5 S$ort!& t$erea"ter, Fo&a! retire% an%i##e%iate!& *oug$t a -=, recreationa! e$ic!e "or $is p!anne% trae!s. A"ter receiing t$epro#ise% -2, #ont$!& pension "ro# Mutate, Inc., "or si #ont$s, Fo&a!, no' une#p!o&a*!ee!se'$ere, receie% a !etter "ro# Mutate, Inc., a%ising $i# t$at t$e pension 'ou!% ceasei##e%iate!& *ecause o" recessionar& *u%get constraints a""ecting in ar&ing %egrees a!!#anageria! sa!aries an% retire#ent pensions. In a suit against Mutate, Inc., "or *reac$ o" contract,Fo&a! 'i!! pro*a*!&

A. 'in, *ecause $e retire% "ro# t$e co#pan& as *argaine%9"or consi%eration "or t$e Boar%s

pro#ise to $i# o" a !i"eti#e pension.B. 'in, *ecause $e ti#e% $is %ecision to retire an% to *u& t$e recreationa! e$ic!e in reasona*!ere!iance on t$e Boar%s pro#ise to $i# o" a !i"eti#e pension.C. !ose, *ecause t$e Boar%s pro#ise to $i# o" a !i"eti#e pension 'as an unen"orcea*!e gi"tpro#ise.8. !ose, *ecause $e $a% *een an e#p!o&ee at9'i!! t$roug$out $is actie serice 'it$ t$eco#pan&.

Questions )9)1 are *ase% on t$e "o!!o'ing "act situation.


7/21

8o#ini/ue o*taine% a *i% o" -1, to tear %o'n $er o!% *ui!%ing an% anot$er *i% o" -, torep!ace it 'it$ a ne' structure in '$ic$ s$e p!anne% to operate a sporting goo%s store. @aingon!& !i#ite% cas$ aai!a*!e, 8o#ini/ue as0e% @ar%cas$ "or a -1, !oan. A"ter reie'ing t$ep!ans "or t$e pro7ect, @ar%cas$ in a signe% 'riting pro#ise% to !en% 8o#ini/ue -1, secure%*& a #ortgage on t$e propert& an% repa&a*!e oer ten &ears in e/ua! #ont$!& insta!!#ents at 1;annua! interest. 8o#ini/ue pro#pt!& accepte% t$e %e#o!ition *i% an% t$e o!% *ui!%ing 'asre#oe%, *ut @ar%cas$ t$erea"ter re"use% to #a0e t$e !oan. 8espite %i!igent e""orts, 8o#ini/ue'as una*!e to o*tain a !oan "ro# an& ot$er source.

Question )

8oes 8o#ini/ue $ae a cause o" action against @ar%cas$3

A. 6es, *ecause *& $aing t$e *ui!%ing %e#o!is$e%, s$e accepte% @ar%cas$so""er to #a0e t$e !oan.B. 6es, *ecause $er re!iance on @ar%cas$s pro#ise 'as su*stantia!, reasona*!e, an%"oreseea*!e.C. No, *ecause t$ere 'as no *argaine% "or ec$ange o" consi%eration "or @ar%cas$s pro#ise to#a0e t$e !oan.8. No, *ecause 8o#ini/ues ina*i!it& to o*tain a !oan "ro# an& ot$er source

%e#onstrate% t$at t$e pro7ect !ac0e% t$e "inancia! soun%ness t$at 'as aconstructie con%ition to @ar%cas$s per"or#ance.

Question )1

?or t$is /uestion on!&, assu#e t$at 8o#ini/ue $as a cause o" action against@ar%cas$. I" s$e sues $i# "or #onetar& re!ie", '$at is t$e pro*a*!e #easure o" $er recoer&3

A. Epectanc& %a#ages, #easure% *& t$e %i""erence *et'een t$e a!ue o" t$e ne' *ui!%ing an%t$e o!% *ui!%ing, !ess t$e a#ount o" t$e propose% !oan 4-1.5.B. Epectanc& %a#ages, #easure% *& t$e esti#ate% pro"its "ro# operating t$epropose% sporting goo%s store "or ten &ears, !ess t$e cost o" repa&ing a-1, !oan at 1; interest oer ten &ears.

C. Re!iance %a#ages, #easure% *& t$e -1, epense o" re#oing t$e o!%*ui!%ing, a%7uste% *& t$e %ecrease or increase in t$e #ar0et a!ue o" 8o#ini/ues !an%i##e%iate!& t$erea"ter.8. No#ina! %a#ages on!&, *ecause *ot$ epectanc& an% re!iance %a#ages arespecu!atie, an% t$ere is no !ega! or e/uita*!e *asis "or a'ar%ing restitution.

1D(. astre!, a notorious spen%t$ri"t '$o 'as usua!!& *ro0e "or t$at reason, receie% t$e"o!!o'ing !etter "ro# $is Unc!e Bu!!ion, a 'ea!t$& an% pru%ent #anH I un%erstan% &ourein "inancia! %i""icu!ties again. I pro#ise to gie &ou -+, on &our *irt$%a& net #ont$,*ut &ou% *etter use it 'ise!& or &ou!! neer get anot$er %i#e "ro# #e. astre!t$ereupon signe% a contract 'it$ a car %ea!er to purc$ase a -), auto#o*i!e an% to#a0e a -+, %o'n paent on t$e %a& a"ter $is *irt$%a&.

I" astre! sues Bu!!ion "or -+, a"ter t$e !atter !earne% o" t$e car9purc$ase contract an%t$en repu%iate% $is pro#ise, '$ic$ o" t$e "o!!o'ing is Bu!!ions *est %e"ense3

4A5 A pro#ise to #a0e a gi"t in t$e "uture is not en"orcea*!e.4B5 Re!iance *& t$e pro#isee on a pro#ise to #a0e a "uture gi"t %oes not #a0e t$e

pro#ise en"orcea*!e un!ess t$e a!ue o" t$e pro#ise% gi"t is su*stantia!!&e/uia!ent to t$e pro#isees !oss *& re!iance.

4C5 Re!iance *& t$e pro#isee on a pro#ise to #a0e a "uture gi"t %oes not #a0e t$epro#ise en"orcea*!e un!ess t$at re!iance a!so resu!ts in an econo#ic *ene"it tot$e pro#isor.


8/21

485 Re!iance *& t$e pro#isee on a pro#ise to #a0e a "uture gi"t %oes not #a0e t$epro#ise en"orcea*!e un!ess in7ustice can *e aoi%e% on!& *& suc$ en"orce#ent.

)1. 8e'ar, a %ee!oper, nee%ing a 'ater 'e!! on one o" $is pro7ects, #et seera! ti#es a*outt$e #atter 'it$ ater#an, a 'e!! %ri!!er. Su*se/uent!&, ater#an sent 8e'ar anunsigne% t&pe'ritten "or# captione% EFF 8RIFFING >RO>OSAF an% stating ariouster#s t$e t'o $a% %iscusse% *ut not agree% upon, inc!u%ing a propose% price o" -+,.T$e "or# conc!u%e%, T$is proposa! 'i!! not *eco#e a contract unti! signe% *& &ou8e'arJ an% t$en returne% to an% signe% *& #e ater#anJ.

8e'ar signe% t$e "or# an% returne% it to ater#an, '$o neg!ecte% to sign it *ut pro#pt!&*egan %ri!!ing t$e 'e!! at t$e propose% site on 8e'ars pro7ect. A"ter %ri!!ing "or t'o %a&s,ater#an to!% 8e'ar %uring one o" 8e'ars %ai!& isits t$at $e 'ou!% not "inis$ un!ess8e'ar 'ou!% agree to pa& t'ice t$e price recite% in t$e 'ritten proposa!. 8e'ar re"use%,ater#an /uit, an% 8e'ar $ire% Su**o to %ri!! t$e 'e!! to co#p!etion "or a price o"-D,+.

In an action *& 8e'ar against ater#an "or %a#ages, '$ic$ o" t$e "o!!o'ing is t$epro*a*!e %ecision3

4A5 8e'ar 'ins, *ecause $is signing o" ater#ans "or# constitute% an acceptanceo" an o""er *& ater#an.

4B5 8e'ar 'ins, *ecause ater#ans co##ence#ent o" per"or#ance constitute% anacceptance *& ater#an o" an o""er *& 8e'ar an% an i#p!ie% pro#ise *&ater#an to co#p!ete t$e 'e!!.

4C5 ater#an 'ins, *ecause $e neer signe% t$e proposa! as re/uire% *& its ter#s.485 ater#an 'ins, *ecause $is co##ence#ent o" per"or#ance #ere!& preente%

8e'ar "ro# reo0ing $is o""er, #a%e on a "or# supp!ie% *& ater#an, an% %i%not o*!igate ater#an to co#p!ete t$e 'e!!.

D:. Barre!, a retai!er o" guns in State K, U.S.A., receie% on


9/21

Questions :9D are *ase% on t$e "o!!o'ing "act situation.

Bett& Bo'er, an a%u!t, as0e%


10/21

485 Genn&*e!!e %ea!t 'it$ a!! o" $er su*contractors in goo% "ait$ an% 'it$out see0ingto renegotiate 4!o'er5 t$e prices t$e& $a% *i%.

1(:. $ic$ o" t$e "o!!o'ing, i" proe%, 'ou!% *est support Mura!s %e"ense3

4A5 Genn&*e!!e gae Mura! no consi%eration "or an irreoca*!e su*9*i%.4B5 Mura!s su*9*i% epress!& re/ueste% Genn&*e!!es acceptance a"ter a'ar%ing o"

t$e #ain contract.4C5 Een a"ter pa&ing -1(, "or t$e paper$anging, Genn&*e!!e 'ou!% #a0e a net

pro"it o" -1, on t$e 8octors Bui!%ing contract.485 Be"ore su*#itting $er o'n *i%, Genn&*e!!e $a% reason to suspect t$at Mura! $a%

#a%e a co#putationa! #ista0e in "iguring $is su*9*i%.

REME8IES

D. S'atter, a *ase*a!! star, contracte% 'it$ t$e Municipa! Sp$on& Orc$estra, Inc., toper"or# "or -+, at a c$i!%rens concert as narrator o" >eter an% t$e o!". S$ort!&*e"ore t$e concert, S'atter *eca#e e#*roi!e% in a $ig$!& pu*!icie% controers& oer'$et$er $e $a% curse% an% assau!te% a *ase*a!! "an. T$e orc$estra cance!e% t$econtract out o" concern t$at atten%ance #ig$t *e a%erse!& a""ecte% *& S'atters

appearance.

S'atter sue% t$e orc$estra "or *reac$ o" contract. @is *usiness agent testi"ie% 'it$outcontra%iction t$at t$e cance!!ation $a% resu!te% in S'atters not getting ot$er contracts "orper"or#ances an% en%orse#ents.

T$e tria! court instructe% t$e 7ur&, in part, as "o!!o'sH I" &ou "in% "or t$e p!ainti"", &ou #a&a'ar% %a#ages "or !osses '$ic$ at t$e ti#e o" contracting cou!% reasona*!& $ae *een"oreseen *& t$e %e"en%ant as a pro*a*!e resu!t o" its *reac$. @o'eer, t$e !a' %oes notper#it recoer& "or t$e !oss o" prospectie pro"its o" a ne' *usiness cause% *& *reac$ o"contract.

On S'atters appea! "ro# a 7ur& er%ict "or S'atter, an% 7u%g#ent t$ereon, a'ar%ing

%a#ages on!& "or t$e -+, "ee pro#ise% *& t$e orc$estra, t$e 7u%g#ent 'i!! pro*a*!&*e

4A5 a""ir#e%, *ecause t$e tria! court state% t$e !a' correct!&.4B5 a""ir#e%, *ecause t$e issue o" %a#ages "or *reac$ o" contract 'as so!e!& a 7ur&

/uestion.4C5 reerse%, *ecause t$e test "or !i#iting %a#ages is '$at t$e *reac$ing part& cou!%

reasona*!& $ae "oreseen at t$e ti#e o" t$e *reac$.485 reerse%, *ecause un%er t$e preai!ing #o%ern ie', !ost pro"its o" a ne'

*usiness are recoera*!e i" t$e& are esta*!is$e% 'it$ reasona*!e certaint&.

Questions 1:=91:) are *ase% on t$e "o!!o'ing "act situation.

Green contracte% in a signe% 'riting to se!! Greenacre, a +9acre tract o" "ar#!an%, to?ar#er. T$e contract proi%e% "or ec$ange o" t$e %ee% an% purc$ase price o" -+, in cas$on ossession 'as to *e gien to ?ar#er on t$e sa#e %ate. On


11/21

1:=. i!! Green pro*a*!& succee% in an action against ?ar#er "or speci"ic per"or#ance3

4A5 &es, *ecause t$e court 'i!! ecuse t$e %e!a& in ten%er on t$e groun% t$at t$ere'as a te#porar& i#possi*i!it& cause% *& t$e tenants $o!%ing oer.

4B5 6es, *ecause ti#e is or%inari!& not o" t$e essence in a !an%9sa!e contract.4C5 No, *ecause Green *reac$e% *& "ai!ing to ten%er t$e %ee% an% possession on


12/21

Question +

?or t$is /uestion on!&, assu#e t$e "o!!o'ing "acts. Upon encountering t$e roc0"or#ation, Structo, instea% o" incurring a%%itiona! costs to re#oe it, *ui!t t$e access %rie'a&oer t$e roc0 'it$ a steep gra%e %o'n to t$e $ig$'a&. Bai!e&, '$o 'as out o" to'n "or seera!%a&s, 'as una'are o" t$is noncon"or#it& unti! t$e %rie'a& $a% *een "inis$e%. As *ui!t, it is toosteep to *e use% sa"e!& *& truc0s or cars, particu!ar!& in t$e 'et or ic& 'eat$er "re/uent!&occurring in t$e area. It 'ou!% cost -=, to tear out an% re*ui!% t$e %rie'a& at $ig$'a& !ee!.

As *ui!t, t$e 'are$ouse, inc!u%ing t$e %rie'a&, $as a "air #ar0et a!ue o" -++,. Bai!e& $aspai% -)D, to Structo, *ut re"uses to pa& #ore *ecause o" t$e noncon"or#ing %rie'a&, '$ic$Structo $as re"use% to tear out an% re*ui!%.

I" Structo sues Bai!e& "or #onetar& re!ie", '$at is t$e #ai#u# a#ount Structo isentit!e% to recoer3

A. -=,, *ecause t$e "air #ar0et a!ue o" t$e 'are$ouse an% %rie'a& as isecee%s t$e contract price *& -+, 4#ore t$an t$e cost o" correcting t$e%rie'a&5.B. -=,, *ecause Structo su*stantia!!& per"or#e% an% t$e cost o" correcting t$e %rie'a&

'ou!% ino!e econo#ic 'aste.C. -=,, #inus '$ateer a#ount Structo sae% *& not *ui!%ing t$e %rie'a& at t$e speci"ie%!ee!.8. Not$ing, *ecause Bai!e& is entit!e% to %a#ages "or t$e cost o" correcting t$e%rie'a&.

Questions (:9(D are *ase% on t$e "o!!o'ing "act situation.

Mer#ai% o'ns an eceptiona!!& sea'ort$& *oat t$at s$e c$arters "or sport "is$ing at a -+ %ai!&rate. T$e "ee inc!u%es t$e use o" t$e *oat 'it$ Mer#ai% as t$e captain, an% one ot$er cre'#e#*er, as 'e!! as "is$ing tac0!e an% *ait. On Ma& 1, >$inne& agree% 'it$ Mer#ai% t$at >$inne&'ou!% $ae t$e "u!!9%a& use o" t$e *oat on Ma& 1+ "or $i#se!" an% $is "a#i!& "or -+. >$inne&pai% an a%ance %eposit o" -2 an% signe% an agree#ent t$at t$e %eposit cou!% *e retaine% *&

Mer#ai% as !i/ui%ate% %a#ages in t$e eent >$inne& cance!e% or "ai!e% to appear.

Question (:

?or t$is /uestion on!&, assu#e t$e "o!!o'ing "acts. At t$e ti#e o" contracting,Mer#ai% to!% >$inne& to *e at t$e %oc0 at + a.#. on Ma& 1+. >$inne& an% $is "a#i!&, $o'eer,%i% not s$o' up on Ma& 1+ unti! noon. Meanti#e, Mer#ai% agree% at 1 a.#. to ta0e Tess an%$er "a#i!& out "is$ing "or t$e rest o" t$e %a&. Tess $a% $appene% to co#e *& an% in/uire a*out t$epossi*i!it& o" suc$ an outing. In ie' o" t$e !ate $our, Mer#ai% c$arge% Tess -) an% sta&e% outt'o $ours *e&on% t$e custo#ar& return ti#e. >$inne&s "ai!ure to appear unti! noon 'as %ue tot$e "act t$at $e $a% *een tr&ing to c$arter anot$er *oat across t$e *a& at a !o'er rate an% $a%gotten !ost a"ter $e 'as unsuccess"u! in getting suc$ a c$arter. $ic$ o" t$e "o!!o'ing is anaccurate state#ent concerning t$e rig$ts o" t$e parties3

A. Mer#ai% can retain t$e -2 pai% *& >$inne&, *ecause it 'ou!% *e %i""icu!t "orMer#ai% to esta*!is$ $er actua! %a#ages an% t$e su# appears to $ae *een areasona*!e "orecast in !ig$t o" anticipate% !oss o" pro"it "ro# t$e c$arter.B. Mer#ai% is entit!e% to retain on!& -+ 41; o" t$e contract price5 an% #ustreturn -1+ to >$inne&.C. Mer#ai% #ust return -1 to >$inne& in or%er to aoi% $er o'n un7ust enric$#ent at >$inne&sepense.8. Mer#ai% #ust return -1 to >$inne&, *ecause t$e !i/ui%ate% %a#age c!auseun%er t$e circu#stances 'ou!% operate as a pena!t&.


13/21

Question (D

?or t$is /uestion on!&, assu#e t$e "o!!o'ing "acts. On Ma& 1+ at 1 a.#., t$e Coast Guar% $a%issue% o""s$ore $ea& 'eat$er 'arnings an% pro$i*ite% a!! s#a!! esse!s t$e sie o" Mer#ai%s"ro# !eaing t$e $ar*or. T$is pro$i*ition re#aine% in e""ect t$roug$out t$e %a&. >$inne& %i% notappear at a!! on Ma& 1+, *ecause $e $a% $ear% t$e 'eat$er 'arnings on $is ra%io.

$ic$ o" t$e "o!!o'ing is an accurate state#ent3

A. T$e contract is %isc$arge% *ecause o" i#possi*i!it&, an% >$inne& is entit!e% toreturn o" $is %eposit.B. T$e contract is %isc$arge% *ecause o" #utua! #ista0e concerning an essentia!"act, an% >$inne& is entit!e% to return o" $is %eposit.C. T$e contract is not %isc$arge%, *ecause its per"or#ance 'as possi*!e in ie' o" t$eeceptiona! sea'ort$iness o" Mer#ai%s *oat, an% >$inne& is notentit!e% to return o" $is %eposit.8. T$e contract is not %isc$arge%, an% >$inne& is not entit!e% to return o" $is%eposit, *ecause t$e !i/ui%ate%9%a#age c!ause in e""ect a!!ocate% t$e ris0 o" *a%'eat$er to >$inne&.

Questions 1 an% 2 are *ase% on t$e "o!!o'ing "act situation.

In a sing!e 'riting, >ainter contracte% 'it$ ?ar#er to paint t$ree i%entica! *arnson $er rura! estate "or -2, eac$. T$e contract proi%e% "or ?ar#ers paento" -:, upon >ainters co#p!etion o" t$e 'or0 on a!! t$ree *arns. >ainter %i%not as0 "or an& paent '$en t$e "irst *arn 'as co#p!ete!& painte%, *ut s$e%e#an%e% -), a"ter painting t$e secon% *arn.

Question 1

Is ?ar#er o*!igate% to #a0e t$e -), paent3

A. No, *ecause ?ar#er $as no, %ut& un%er t$e contract to pa& an&t$ing to >ainter unti! a!! t$ree*arns $ae *een painte%.B. No, *ecause >ainter 'aie% $er rig$t, i" an&, to paent on a per9*arn *asis *& "ai!ing to%e#an% -2, upon co#p!etion o" t$e "irst *arn.C. 6es, *ecause t$e contract is %iisi*!e.8. 6es, *ecause >ainter $as su*stantia!!& per"or#e% t$e entire contract.

Question 2

?or t$is /uestion on!&, assu#e t$at ?ar#er rig$t"u!!& re"use% >ainters %e#an% "or paent.

I" >ainter i##e%iate!& ter#inates t$e contract 'it$out painting t$e t$ir% *arn, '$at is >ainterentit!e% to recoer "ro# ?ar#er3

A. Not$ing, *ecause paent 'as epress!& con%itione% on co#p!etion o" a!! t$ree *arns.B. >ainters epen%itures p!us anticipate% pro"it in painting t$e "irst t'o *arns, up to a #ai#u#recoer& o" -),.C. T$e reasona*!e a!ue o" >ainters serices in painting t$e t'o *arns, !ess ?ar#ers %a#ages, i"an&, "or >ainters "ai!ure to paint t$e t$ir% *arn.8. T$e a#ount t$at t$e co#*ine% a!ue o" t$e t'o painte% *arns $as *een increase% *& >ainters'or0.


14/21


15/21

?or t$is /uestion on!&, assu#e t$e "o!!o'ing "acts. Bu&er une/uioca!!& repu%iate% t$e contract onAugust 1. On August 1+, Se!!er urge% Bu&er to c$ange $er #in% an% procee% 'it$ t$e sc$e%u!e%c!osing on 8ece#*er 1. On Octo*er 1, $aing $ear% not$ing "urt$er "ro# Bu&er, Se!!er so!% an%cone&e% $is ranc$ to Ranc$er 'it$out notice to Bu&er. On 8ece#*er 1, Bu&er atte#pte% toc!ose un%er t$e !anner to procee%'it$ t$e 'or0, is ei%ence o" t$e ora! agree#ent a%#issi*!e in >!anners action againstO$ner "or *reac$ o" contract3


16/21

4A5 6es, *ecause t$e ora! agree#ent re/uire% approa! *& a t$ir% part&.4B5 6es, *ecause t$e ei%ence s$o's t$at t$e 'riting 'as inten%e% to ta0e e""ecton!& i" t$e approa! occurre%.4C5 No, *ecause t$e paro! ei%ence ru!e *ars ei%ence o" a prior ora! agree#enteen i" t$e !atter is consistent 'it$ t$e ter#s o" a partia! integration.485 No, *ecause t$e prior ora! agree#ent contra%icte% t$e 'riting *& #a0ing t$eparties %uties con%itiona!.

)+. ?or t$is /uestion on!&, assu#e t$e "o!!o'ing "acts. At O$ners insistence, t$e 'rittenO$ner9>!anner agree#ent containe% a proision t$at neit$er part& 'ou!% *e *oun%un!ess O$ners !a' partner, an ai% stu%ent o" !an%scaping, s$ou!% approe >!anners%esign. Be"ore >!anner co##ence% t$e 'or0, O$ners !a' partner, in t$e presence o"*ot$ O$ner an% >!anner, epress!& %isapproe% t$e !an%scaping %esign. Neert$e!ess,O$ner or%ere% >!anner to procee% 'it$ t$e 'or0, an% >!anner re!uctant!& %i% so. $en>!anners per"or#ance 'as ); co#p!ete, O$ner repu%iate% $is %ut&, i" an&, to pa& t$econtract price or an& part t$ereo".

I" >!anner no' sues O$ner "or %a#ages "or *reac$ o" contract, '$ic$ o" t$e "o!!o'ingconcepts *est supports >!anners c!ai#3

4A5 Su*stantia! per"or#ance.4B5 >ro#issor& estoppe!.4C5 Irreoca*!e 'aier o" con%ition.485 Un7ust enric$#ent.

Questions :)9:+ are *ase% on t$e "o!!o'ing "act situation.

E!%a, t$e age% #ot$er o" A!ice an% Barr&, *ot$ a%u!ts, 'is$e% to e#p!o& a !ie9inco#panion so t$at s$e #ig$t continue to !ie in $er o'n $o#e. E!%a, $o'eer, $a% on!& enoug$inco#e to pa& one9$a!" o" t$e co#panions -2, #ont$!& sa!ar&. Fearning o" t$eir #ot$ersp!ig$t, A!ice an% Barr& agree% 'it$ eac$ ot$er in a signe% 'riting t$at on t$e !ast %a& o" aters *est %e"ense3


17/21

4A5 @e receie% no consi%eration "or $is con%itiona! pro#ise to Tertius.4B5 @is con%itiona! pro#ise to Tertius 'as not to *e per"or#e% in !ess t$an a &ear"ro# t$e ti#e it 'as #a%e.4C5 @is con%itiona! pro#ise to Tertius 'as not #a%e "or t$e pri#ar& purpose o"*ene"iting $i#se!" 4>ater5.485 T$e !oan *& Tertius 'as #a%e 'it$out an& agree#ent concerning t$e app!ica*!einterest rate.

12(. Seisin an% en%ee, stan%ing on Greenacre, ora!!& agree% to its sa!e an% purc$ase "or-+,, an% ora!!& #ar0e% its *oun%s as t$at !ine o" trees %o'n t$ere, t$e %itc$ t$atintersects t$e#, t$e "ence on t$e ot$er si%e, an% t$at street on t$e "ourt$ si%e.

In '$ic$ o" t$e "o!!o'ing is t$e re#e%& o" re"or#ation #ost appropriate3

4A5 As !ater re%uce% to 'riting, t$e agree#ent *& c!erica! #ista0e inc!u%e% t'o acrest$at are actua!!& *e&on% t$e "ence.

4B5 en%ee reasona*!& t$oug$t t$at t'o acres *e&on% t$e "ence 'ere inc!u%e% in t$eora! agree#ent *ut Seisin %i% not. As !ater re%uce% to 'riting, t$e agree#entinc!u%e% t$e t'o acres.

4C5 en%ee reasona*!& t$oug$t t$at t$e price ora!!& agree% upon 'as -),+, *utSeisin %i% not. As !ater re%uce% to 'riting, t$e agree#ent sai% -+,.

485 en%ee reasona*!& t$oug$t t$at a %i!api%ate% s$e% *ac0e% up against t$e "ence'as to *e torn %o'n an% re#oe% as part o" t$e agree#ent, *ut Seisin %i% not.

As !ater re%uce% to 'riting, t$e agree#ent sai% not$ing a*out t$e s$e%.

1:. Stirrup, a ranc$er, an% E/uino, a "ancier o" $orses, signe% t$e "o!!o'ing 'ritingH ?or-+,, Stirrup 'i!! se!! to E/uino a gra& $orse t$at E/uino #a& c$oose "ro# a#ongt$e gra&s on Stirrups ranc$.

E/uino re"use% to accept %e!ier& o" a gra& $orse ti#e!& ten%ere% *& Stirrup or toc$oose a#ong t$ose re#aining, on t$e groun% t$at %uring t$eir negotiations Stirrup $a%ora!!& agree% to inc!u%e a sa%%!e, 'ort$ -1, an% a!so to gie E/uino t$e option to

c$oose a gra& or a *ro'n $orse. E/uino insiste% on one o" Stirrups *ro'n $orses, *utStirrup re"use% to part 'it$ an& o" $is *ro'ns or 'it$ t$e sa%%!e as %e#an%e% *&E/uino.

I" E/uino sues Stirrup "or %a#ages an% see0s to intro%uce ei%ence o" t$e a!!ege% ora!agree#ent, t$e court pro*a*!& 'i!!

4A5 a%#it t$e ei%ence as to *ot$ t$e sa%%!e an% t$e option to c$oose a *ro'n$orse.

4B5 a%#it t$e ei%ence as to t$e sa%%!e *ut not t$e option to c$oose a *ro'n $orse.4C5 a%#it t$e ei%ence as to t$e option to c$oose a *ro'n $orse *ut not t$e pro#ise

to inc!u%e t$e sa%%!e.485 not a%#it an& o" t$e ei%ence.

Questions :29:= are *ase% on t$e "o!!o'ing "act situation.

a!0er, '$o 0ne' not$ing a*out $orses, in$erite% A*er!one, a t$oroug$*re% co!t '$ose%isagreea*!e *e$aior #a%e $i# a pest aroun% t$e *arn. a!0er so!% t$e co!t "or -1,+ toS$er'oo%, an eperience% race$orse9trainer '$o 0ne' o" a!0ers ignorance a*out $orses. Att$e ti#e o" sa!e, a!0er sai% to S$er'oo%, I $ate to sa& it, *ut t$is $orse is *a%9te#pere% an%not$ing specia!.

Question :2


18/21

?or t$is /uestion on!&, assu#e t$at soon a"ter t$e sa!e, A*er!one 'on t$ree races an% earne%-), "or S$er'oo%.

$ic$ o" t$e "o!!o'ing a%%itiona! "acts, i" esta*!is$e% *& a!0er, 'ou!% *est support $is c$ance o"o*taining rescission o" t$e sa!e to S$er'oo%3

A. a!0er %i% not 0no' unti! a"ter t$e sa!e t$at S$er'oo% 'as an eperience%race$orse9trainer.B. At a pre9sa!e eercise session o" '$ic$ S$er'oo% 0ne' t$at a!0er 'as nota'are, S$er'oo% c!oc0e% A*er!one in recor%9setting ti#e, "ar surpassing an&preious per"or#ance.C. A*er!one 'as t$e on!& t$oroug$*re% t$at a!0er o'ne%, an% a!0er %i% not 0no' $o' toea!uate &oung an% unteste% race$orses.8. At t$e ti#e o" t$e sa!e, a!0er 'as angr& an% upset oer an inci%ent in '$ic$

A*er!one $a% reare% an% t$ro'n a ri%er.

Question :=

$ic$ one o" t$e "o!!o'ing scenarios 'ou!% *est support an action *& S$er'oo%,

rat$er t$an a!0er, to rescin% t$e sa!e3

A. In $is "irst race a"ter t$e sa!e, A*er!one ga!!ope% to a $uge !ea% *ut %roppe% %ea% 1 &ar%s"ro# t$e "inis$ !ine *ecause o" a rare congenita! $eart %e"ect t$at 'as un%iscoera*!e ecept *&autops&.B. A*er!one 'on -+ #i!!ion "or S$er'oo% oer a t$ree9&ear racing career *ut upon *eing retire%'as "oun% to *e incura*!& steri!e an% use!ess as a *ree%er.C. A"ter A*er!one $a% 'on t$ree races "or S$er'oo%, it 'as %iscoere% t$at *&c!erica! error, un0no'n to eit$er part&, A*er!ones o""icia! *irt$ registration!iste% an un%istinguis$e% race$orse as t$e sire rat$er t$an t$e "a#ous race$orse t$at in "act 'ast$e sire.8. A 'ee0 a"ter t$e sa!e, A*er!one 'ent *erser0 an% in"!icte% in7uries uponS$er'oo% t$at re/uire% $is $ospita!iation "or si #ont$s an% a "u!! &ear "or $is recoer&.

Question

Tra'", t$e #anager o" a state "air, contracte% 'it$ Sc$'eine*auc$, a reno'ne%$og *ree%er, to e$i*it Sc$'eine*auc$s 'or!% c$a#pion ani#a!, Mega$a'g, "or t$e t$ree 'ee0so" t$e annua! "air, at t$e conc!usion o" '$ic$ Sc$'eine*auc$ 'ou!% receie an $onorariu# o"-=. T'o %a&s *e"ore t$e opening o" t$e "air, Mega$a'g too0 sic0 'it$ *oarsitis, aco##unica*!e %isease a#ong s'ine, an%, un%er t$e app!ica*!e state /uarantine !a', er&pro*a*!& cou!% not *e e$i*ite% "or at !east a #ont$.

Upon !earning t$is, Tra'" can !ega!!& pursue '$ic$ o" t$e "o!!o'ing courses o"action 'it$ respect to $is contract 'it$ Sc$'eine*auc$3

A. Suspen% $is o'n per"or#ance, %e#an% assurances "ro# Sc$'eine*auc$, an% treat a "ai!ure*& Sc$'eine*auc$ to gie t$e# as an actiona*!e repu%iation.B. Suspen% $is o'n per"or#ance an% recoer %a#ages "ro# Sc$'eine*auc$"or *reac$ o" contract un!ess Sc$'eine*auc$ at once supp!ies an un%isease% $og o" e$i*ition/ua!it& as a su*stitute "or Mega$a'g.C. Ter#inate $is o'n per"or#ance an% treat Mega$a'gs i!!ness as %isc$arging a!! re#aining%uties un%er t$e contract.8. Ter#inate t$e contract, *ut on!& i" $e 4Tra'"5 see0s pro#pt!& to o*tain "or t$ee$i*it a suita*!e su*stitute "or Mega$a'g "ro# anot$er $og o'ner.


19/21

Questions 1)191)2 are *ase% on t$e "o!!o'ing "act situation.

On Noe#*er 1+,


20/21

$ic$ o" t$e "o!!o'ing is NOT an accurate state#ent concerning t$e arrange#ent *et'een?reun% an% Tu""3

A. It 'as i#portant to en"orcea*i!it& o" ?reun%s pro#ise to Tu"" t$at it *e e#*o%ie% in a signe%'riting.B. B& eten%ing t$e cre%it to renc$, Tu"" e""ectie!& accepte% ?reun%s o""er "or a uni!atera!contract.C. A!t$oug$ ?reun% receie% no consi%eration "ro# renc$, ?reun%s pro#ise is en"orcea*!e *&Tu"".8. ?reun%s pro#ise is en"orcea*!e *& Tu"" '$et$er or not Tu"" gae ?reun%seasona*!e notice o" t$e etension o" cre%it to renc$.

Questions D299D= are *ase% on t$e "o!!o'ing "act situation.

Question D2

Gour#et, a "a#ous c$e", entere% into a 'ritten agree#ent 'it$ $is "rien% 8e!igor, a 'e!!90no'ninterior %ecorator respecte% "or $is uni/ue %esigns, in '$ic$ 8e!igor agree%, "or a " ie% "ee, to%esign t$e interior o" Gour#ets ne' restaurant, an%, upon Gour#ets approa! o" t$e %esignp!an, to %ecorate an% "urnis$ t$e restaurant accor%ing!&. T$e agree#ent 'as si!ent as to

assign#ent or %e!egation *& eit$er part&. Be"ore *eginning t$e 'or0, 8e!igor so!% $is %ecorating*usiness to Ne'#an un%er an agree#ent in '$ic$ 8e!igor assigne% to Ne'#an, an% Ne'#anagree% to co#p!ete, t$e Gour#et 8e!igor contract. Ne'#an, a!so an eperience% %ecorator o"ece!!ent repute, a%ise% Gour#et o" t$e assign#ent, an% supp!ie% $i# 'it$ in"or#ationcon"ir#ing *ot$ Ne'#ans "inancia! responsi*i!it& an%past co##ercia! success.

Is Gour#et o*!igate% to per#it Ne'#an to per"or# t$e Gour#et98e!igor agree#ent3

A. 6es, *ecause t$e agree#ent containe% no pro$i*ition against assign#ent or %e!egation.B. 6es, *ecause Gour#et receie% a%e/uate assurances o" Ne'#ans a*i!it& to co#p!ete t$e 7o*.C. No, *ecause 8e!igors %uties 'ere o" a persona! nature, ino!ing $is reputation, taste, an%s0i!!.

8. No, *ecause 8e!igors purporte% %e!egation to Ne'#an o" $is o*!igations to Gour#et e""ecte%a noation.

Question D=

I" Gour#et a!!o's Ne'#an to per"or# an% approes $is %esign p!an, *ut Ne'#an "ai!s 'it$out!ega! ecuse to co#p!ete t$e %ecorating as agree%, against '$o# %oes Gour#et $ae anen"orcea*!e c!ai# "or *reac$ o" contract3

A. 8e!igor on!&, *ecause 8e!igors agree#ent 'it$ Ne'#an %i% not %isc$arge $is %ut& toGour#et, an% Ne'#an #a%e no epress pro#ise to Gour#et.B. Ne'#an on!&, *ecause 8e!igors %ut& to Gour#et 'as %isc$arge% '$en 8e!igor o*taine% as0i!!e% %ecorator 4Ne'#an5 to per"or# t$e Gour#et 8e!igor contract.

C. Ne'#an on!&, *ecause Gour#et 'as an inten%e% *ene"iciar& o" t$e 8e!igor9 Ne'#anagree#ent, an% 8e!igors %ut& to Gour#et 'as %isc$arge% '$en Gour#et per#itte% Ne'#an to%o t$e 'or0 an% approe% Ne'#ans %esign.8. Eit$er 8e!igor, *ecause $is agree#ent 'it$ Ne'#an %i% not %isc$arge $is %ut& to Gour#et orNe'#an, *ecause Gour#et 'as an inten%e% *ene"iciar& o" t$e 8e!igor9Ne'#an agree#ent.

Question 1D2

In ec$ange "or a a!i% an% su""icient consi%eration, Goo%*ar ora!!& pro#ise% a!0er, '$o $a% nocar an% 'ante% a #inian, to pa& to an&one "ro# '$o# &ou *u& a #inian 'it$in t$e net si


21/21

#ont$s t$e "u!! purc$ase9price t$ereo". T'o #ont$s !ater, a!0er *oug$t a use% #inian oncre%it "ro# Minianit& ?air, Inc., "or -(,. At t$e ti#e, Minianit& ?air 'as una'are o" Goo%*arsear!ier pro#ise to a!0er, *ut !earne% o" it s$ort!& a"ter t$e sa!e.

Can Minianit& ?air en"orce Goo%*ars pro#ise to a!0er3

A. 6es, un%er t$e %octrine o" pro#issor& estoppe!.B. 6es, *ecause Minianit& ?air is an inten%e% *ene"iciar& o" t$e Goo%*ar9 a!0er contract.C. No% *ecause Goo%*ars pro#ise to a!0er is unen"orcea*!e un%er t$e suret&s$ip c!ause o"t$e statute o" "rau%s.8. No, *ecause Minianit& ?air 'as neit$er i%enti"ie% '$en Goo%*ars pro#ise 'as #a%e nora'are o" it '$en t$e #inian9sa!e 'as #a%e.

Question 1D:

Bree%er *oug$t a t'o9#ont$9o!% registere% *oar at auction "ro# >igst&!e "or -(. No epress'arrant& 'as #a%e. ?i"teen #ont$s !ater, tests *& eperts proe% conc!usie!& t$at t$e *oar $a%*een *orn incura*!& steri!e. I" t$is $a% *een 0no'n at t$e ti#e o" t$e sa!e, t$e *oar 'ou!% $ae*een 'ort$ no #ore t$an -1.

In an action *& Bree%er against >igst&!e to aoi% t$e contract an% recoer t$e price pai%, t$eparties stipu!ate t$at, as *ot$ 'ere an% $a% *een a'are, t$e #ini#u# age at '$ic$ t$e "erti!it& o"a *oar can *e %eter#ine% is a*out 12 #ont$s.

$ic$ o" t$e "o!!o'ing 'i!! t$e court pro*a*!& %eci%e3

A. Bree%er 'ins, *ecause t$e parties 'ere #utua!!& #ista0en as to t$e *oars "erti!it& '$en t$ea%e t$e agree#ent.B. Bree%er 'ins, *ecause >igst&!e i#p!ie%!& 'arrante% t$at t$e *oar 'as "it "or *ree%ing.C. >igst&!e 'ins, *ecause Bree%er assu#e% t$e ris0 o" t$e *oars steri!it&.8. >igst&!e 'ins, *ecause an& #ista0e ino!e% 'as uni!atera!, not #utua!.

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