New York State BAR Contracts Exam Questions and Answers

New York State BAR Contracts Exam Questions and Answers 7. Real Estate - CL or Article 2?: CL 8. Sale of Goods - CL or Article 2?: Article 2 o Regardless of $ amount o Regardless of who people are 9. Mixed deal - CL or Article 2?: • Look to see which is more important part of transaction • Whichever is more important part of transaction, the governing authority controls the entire transaction 10. What is the exception to the mixed-deal rule to determine whether CL or Article 2 applies?: If the K divides payment, then apply UCC to sale of goods part and CL to the rest 11. What law applies to the lease of goods?: NY ONLY: article 2A of the UCC, regardless of whether consumer lease or commercial 12. What are the steps regarding the formation of a K?: 1) initial communication -- an "offer" 2) was there a "termination of the offer" 3) who responds & how she responds - acceptance" 4) is the agreement under the above 3 steps legally enforceable? Defenses Against Formation 13. What is the general test for an offer?: Manifestation of intention to be bound 14. When are terms of an offer too indefinite to be enforced?: • Open price term: court will read in "reasonable" price, except in a contract for the sale of real property o For Sale of goods under Article 2: the price is the reasonable price at the time of delivery • Requirements contracts are valid under Article 2 even though the quantity is uncertain o It is measured by the buyer's requirements o Note: cannot take the seller by surprise with a huge increase in requirements: must be in line w/ prior demands o Key words: "all", "only", "exclusively", "solely" o Commitment of exclusivity is hallmark 15. Is an offer required to contain all material terms?: NO • Missing price term in sales contract o Sale of real estate - CL - price and description required, not an offer o Sale of goods - Article 2 - no price requirement, offer if parties so intend 16. Vague or Ambiguous material terms re: the offer?: Not an offer under either CL or Article 2 • Key words to look for o "appropriate", "fair", "reasonable" 17. Is an advertisement an offer?: Generally no, unless there is a quantity 18. What are the two exceptions re: advertisements as offers?: 1) an advertise- ment can be an offer if it is in the nature of a reward • 2) an advertisement can be an offer if it is specific as to quantity 19. What are the four methods of termination of an offer?: 1) Lapse of Time • 2) Revocation • 3) Rejection • 4) Death of a Party Prior to Acceptance