Content and meaning under the UCC Practice Questions

Question 1

A merchant seller signed a writing offering to sell a buyer a specific used printing press for $40,000. The writing stated, “In exchange for the buyer's payment of $500, received today, this offer will remain open until 5:00 p.m. Friday.” On Thursday, the buyer sent an acceptance by overnight courier to the address specified in the offer. A transportation disruption delayed delivery until 10:00 a.m. Saturday. At 4:00 p.m. Friday, before receiving the acceptance, the seller sold the press to another buyer. The original buyer learned of that sale only after the courier delivered the acceptance. The buyer asks whether a contract to purchase the press was formed. Which of the following is the most appropriate advice?

Accepted Answer

No contract was formed because acceptance of an option contract became effective only upon receipt, which occurred after the option expired.

Answer

A contract was formed when the buyer mailed the acceptance because the mailbox rule applies to every acceptance sent by an authorized means.

Answer

A contract was formed when the buyer mailed the acceptance because the seller's promise to keep the offer open prevented expiration.

Answer

No contract was formed because an offer concerning goods worth more than $500 cannot be accepted through an electronic communication.

Question 2

Using only the supplied client file and legal resources, prepare a client-advisory letter explaining whether EventWorks may stop performance and recover additional costs after the convention center became unavailable. The letter must recommend a practical response to the venue owner and a negotiation position that protects EventWorks while preserving the September conference if feasible.

Question 3

Question 4

Question 5

Question 6

Question 7

A homeowner hired a landscaping company to renovate the homeowner's mother's yard by May 15 for a family celebration. The signed contract identified the mother's property, stated that the renovation was a birthday gift for her, and required the company to coordinate access directly with her. The mother learned of the contract from the company and, reasonably expecting timely completion, paid a nonrefundable deposit to rent a large tent for the May 20 celebration. Before any landscaping work began, the homeowner and the company agreed to cancel their contract. The mother promptly demanded performance. There is no issue concerning the form of the contract. Which of the following is the mother's strongest argument that the cancellation did not eliminate her contractual rights?

Accepted Answer

She was an intended beneficiary whose rights vested when she materially relied on the promised performance.

Answer

She became an assignee because the contract required the company to perform work on property she owned.

Answer

She was an incidental beneficiary whose rights vested when the landscaping company contacted her about access.

Answer

She supplied consideration by paying the tent deposit in anticipation of the landscaping company's performance.

Question 8

A furniture manufacturer, a merchant, signed and emailed a retailer an offer to sell 200 desks for $300 each. The email stated, "This offer will remain open for six months." The retailer gave no consideration for that assurance. Four months later, the manufacturer telephoned the retailer and said, "Material prices increased, so I revoke the offer." The next day, before buying replacement desks, the retailer emailed an unequivocal acceptance of the original offer. The manufacturer received the acceptance immediately but refused to deliver, arguing that the offer had been revoked. The retailer consults a lawyer about whether a contract was formed. Which of the following is the lawyer's strongest conclusion?

Accepted Answer

No contract was formed because the merchant's firm-offer assurance is irrevocable for at most three months, after which the offer could be revoked like any other offer.

Answer

A contract was formed because the signed merchant's assurance made the offer irrevocable through the stated six-month period.

Answer

No contract was formed because an option is enforceable only when the offeree gives consideration for the promise to keep it open.

Answer

A contract was formed only if the retailer can prove foreseeable reliance on the assurance before the manufacturer attempted revocation.

Content and meaning under the UCC — MCQs

Content and meaning under the UCC — MCQs

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