3 MBE Contracts Questions to Study

3 MBE Contracts Questions to Study

Let’s look at some Contracts questions I’ve tossed together! Offer, acceptance, consideration, mailbox rule, detrimental reliance, UCC, Restatement of Contracts, widgets….Contracts was likely a flurry of buzz words, definitions, and elements. It is an important part of the legal landscape, and you’ll definitely need to refresh yourself on what was likely a two-semester 1L course.

Disclaimer – these are not actual MBE Contracts questions. However, I can say with confidence that they are fairly representative of the types of questions you will see, and cover concepts you will need to know. Alright, let’s dive in!

Question 1

Thanos owned a small jewelry store specializing in rare gemstones called “Thanos Infinity Stones.” Thanos contacted the local paper and published an advertisement that said “FIRST COME, FIRST SERVED! 1 Infinity Stone Ring Worth $750, selling for $75.” Loki saw the advertisement and was the first to arrive at the store the very next morning, asking to purchase the necklace. Thanos refused, stating that the sale on the Infinity Stone Ring was available to females only.

Loki wishes to bring an action against Thanos for not selling him the ring. Will he win?

A) No, because Loki did not write to Thanos stating his intent to accept the offer to sell the Infinity Stone Ring at a discount.

B) No, because the advertisement in the local paper was only an invitation to the public to make an offer.

C) Yes, because Thanos is not allowed to add gender conditions to his invitation to the public to make an offer.

D) Yes, because the advertisement placed in the local paper will be considered a binding offer.

Question 2:

Poison Ivy had three tickets for the Gotham Arboretum Gala on July 15, but was unable to attend. On June 7, she mailed this letter to Mr. Freeze:

“June 6,

Mr. Freeze, I’ve got three tickets to the Gotham Arboretum Gala on July 15, but I’ve got to skip town for a bit. I’ll sell them to you for $45 each. I’ll give you 10 days from the above date to decide if you want to accept my offer or not.

Btdubs, don’t freeze the plants if you decide to go or I’ll kill you.”

Mr. Freeze received the letter on June 8, and got around to opening and reading it on June 11. He finally stopped over by Poison Ivy’s greenhouse on July 1st, informing her that he accepted the offer. Poison Ivy told him he was too late – she had sold them to Two Face just that morning.

If the letter granted power of acceptance to Mr. Freeze, was the power to accept terminated before his attempted acceptance?

A) No, because Mr. Freeze got the letter on June 8.

B) No, because Mr. Freeze opened and read the letter on June 11.

C) Yes, because the letter from Poison Ivy was dated June 6.

D) Yes, because the letter from Poison Ivy was mailed on June 7.

Question 3

Peter Parker got accepted into an exclusive engineering summer program with Oscorp Industries. Oscorp would provide these students with weekly updates for the eight-week program, ranking them into C, B, A, and S tiers depending on performance, with C being the lowest and S the highest. Aunt May told Peter that, if he promised to study a minimum of 3 hours each night, she would pay him $300 for each S he received on his weekly program updates. Eagerly, Peter told Aunt May that he’d work hard to make her proud.

How might this occurance be regarded?

A) As a voidable offer.

B) As a conditional gift, without legal enforceability.

C) As lacking the detriment element necessary to trigger legal enforceability.

D) As a legally enforceable, bargained-for exchange.

Bar question answer kitten

Answer Question 1: D

Generally speaking, advertisements are considered to be inviting offers. One exception to that though (which you may recall from case law) is when language to the effect of “FIRST COME, FIRST SERVED” is used. This language is a promise to sell and specified quantity, and is considered an offer. Here, because Thanos’ advertisement is an offer, Loki will likely win.

A is incorrect because nothing about the advertisement/offer appears to indicate that acceptance must be in writing.

B is the general rule that most advertisements fall under – as invitations for offers to be made. However, the language used in this particular advertisement takes it outside the general rule, which makes B incorrect.

C is incorrect because there is no common law contract principle forbidding gender distinctions within offers.

Answer Question 2: C

The terms of the offer, as provided in the letter, state that it is open for 10 days. The offer also provides that this 10 day period is “from the above date,” which makes the date of the letter (June 6) relevant to the offer. The offer needed to be accepted by June 16.

A is incorrect because, by the language of the offer, the date the letter was received is not relevant.

B is incorrect for a similar reason. Since Poison Ivy has the ability to limit the offer in nearly any manner desired, and specifically limited the term to the date provided, when Mr. Freeze actually got around to reading the letter is also irrelevant.

D is incorrect, again, for a similar reason. Poison Ivy has near-limitless power to craft the offer as she wishes, including naming the date on which a given term of expiration will begin. Because she did this, the date the letter was actually mailed is irrelevant as well.

Answer Question 3: D

Here we’re reviewing just what can be considered consideration. As you might recall, adequate consideration requires a bargained-for exchange of legal value. This “legal value” can be some kind of detriment that induces a promise. Here we have two distinct promises – Peter’s promise to study a minimum of 3 hours each night, and Aunt May’s promise to pay $300 for each S. Each is a legal detriment to their respective promisor, adequate consideration has been met, and a legally enforceable, bargained-for exchange created.

A is incorrect because Aunt May has not provided any terms of voidability in her offer, and no common law presumptions of voidability apply.

B is perhaps tempting, considering what appears on the face of the statement to be a generous offer from the proud Aunt May looking to reward Peter Parker. Still, we have adequate consideration present between the parties for the creation of a legally enforceable exchange that brings this above a mere gift.

C is incorrect because Peter offers a detriment through his promise to study at least 3 hours a night, and Aunt May offers a detriment through the payment of $300 per “S.”

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