07 Oct October Contracts Practice
Over the past few days we have been testing ourselves, working on Torts and Criminal Law questions, and hopefully changing and editing our study schedule as we have gone along. Every time we do MCQ’s we should be aiming for 80% correct. If we are not getting between 60 – 80% for each daily MCQ session then we need to stop what we are doing and re-calibrate our calendar.
Today we default in Contracts. We should be doing a minimum of 20 Contract MCQ’s and Outlining 2 Contract Essays.
Buyer opened a new automobile service station earlier this year. Buyer wanted to buy a television set for the station so her customers could watch television while she worked on their cars.
Buyer found the television set she wanted at Seller Sets, Inc. (“Seller”), a television set retailer. A Seller salesperson told Buyer she could purchase the set for $300. Buyer replied that she would like to “shop around”. The salesperson then wrote “Seller Sets, Inc.– $300″ on a sales brochure describing the set and gave the brochure to Buyer. The printed phrase “Available for a Limited Time Only” appeared at the top of the brochure. As the salesperson handed Buyer the brochure he said, “I think you’ll find no one will beat our price.”
Not finding a better price, Buyer returned to Seller’s one week later to buy the television set. However, the salesperson told her that the set was out of stock and that Seller could not sell her another at the $300 price. Two months later, Buyer purchased the same model set from another dealer for $450.
Buyer wishes to sue Seller, seeking damages for lost profits. Buyer intends to allege that she lost customers because she has not had television in the station for the past two months.
What theory or theories for recovery of damages will Buyer assert in her complaint and what is her likelihood of success on each theory? Discuss.
Seller sent Buyer a form letter stating that Seller was “offering for sale a full line of zinc bolts, in 1,000 bolt lots, delivery within 30 days.” The letter concluded by stating, “Responses must be received within ten days.” Attached to the letter was a purchase order form. The front of the purchase order form contained the prices of various bolts followed by blank spaces in which the purchaser could enter the desired quantity of bolts. The back of the purchase order form included the following statement: “Any action for breach of warranty under this contract must be commenced within one year after the cause of action has accrued.”
Upon receipt of Seller’s letter, Buyer immediately copied the description and price of one type of bolt from Seller’s form onto the front of Buyer’s own purchase order form, specified a quantity of 1,000 bolts, and sent the form to Seller, who received it three days later. On the back of Buyer’s form was the following statement: “This order is subject to the terms and conditions below.” Paragraph 4 of said form provided in part: “The parties agree that the four-year limitations period provided in Uniform Commercial Code 2-725(1) shall be applicable.”
Section 2-725(1) of the Uniform Commercial Code states: “An action for breach of any contract for sale must be commenced within four years after the cause of action has accrued. By original agreement the parties may reduce the period of limitation to not less than one year but may not extend it.”
The price of zinc rose dramatically in the two weeks following Seller’s receipt of Buyer’s form. Seller then sent a telegram to Buyer stating: “Because of market conditions we cannot fill your order.” Buyer responded with a demand for delivery.
If Seller fails to deliver the bolts, will it be liable for breach of contract? Discuss.
If Seller does deliver the bolts and they are defective, what is the applicable limitations period for Buyer to file an action for breach of warranty under the contract? Discuss.
Some years the contracts questions are short and other years students feel like the contracts questions are so long there is now way they will ever finish the MCQ portion. The process for answering Contract MCQ’s is very similar to Torts and Criminal Law but it is also very different. First, as always, go to the call of your question. Identify what you are being asked. In a Contract call you will not be told a “theory” like arson in Criminal Law, but you will be given “directions”. I use the term directions because Contracts is like a one way road. You have to show a valid enforceable agreement before you get to discuss conditions. You can only go one way. So with your Contract MCQ’s your call is your address.
You know that this is a one way road and you are trying to see if you can get to your address.
With the longer contract questions it can be helpful to diagram them out. This helps you keep track of the parties and who is doing what. Often in Contract fact patterns the person labeled the “offeree” ends up becoming the offeror and the labeling can really throw people!