CONTRACTS EXAM QUESTIONS 1.

ESSAY EXAM QUESTIONS

INTRODUCTORY NOTE
The essay questions that follow have been selected to provide you with an opportunity to experi-
ence how the substantive law you have been reviewing may be tested in the hypothetical essay exami-
nation question context. These sample essay questions are a valuable self-diagnostic tool to enable you
to enhance your issue-spotting ability and practice your writing skills. It is suggested that you approach
each question as though under actual examination conditions. Note the issues as you see them, and then
analyze the issues before writing. The time allowed for actual writing is 60 minutes. Should you prefer
to forgo the actual writing involved on these questions, be sure to give yourself no more time for issue
spotting than you would on the actual examination.
After completing your own analysis of each question, compare your answer with that provided
herein. These are "passing" answers that show sufficient coverage to earn a passing grade for the
question. They are not "model" answers.

EXAM QUESTION NO.1

On Thursday, May 14, Tenant received the following letter from Shore: "Dear Tenant, I will let
you have my 'Shore House' for this June through August season, same terms under which you occupied
it last year. Please reply in a week." Tenant noticed Shore's letter was postmarked May 11.
Earlier in May, Tenant had made inquiry at "The Cliffs," a mountain resort owned by Cliff. In
Cliff's absence, Joe, one of Cliff's caretakers, had shown Tenant two available houses, "Hi- Vu" and
"Lo-Vu," which Joe stated were listed for rent at $6,000 and $3,000 respectively, for one season.
On May 15, Tenant received a letter from Cliff which read, "This confirms statements by Joe. You
may have Hi- Vu at $6,000, or Lo- Vu at $3,000, for the season June through August, all services
included, payable in equal monthly installments."
On May 17, Tenant wrote to Cliff as follows, "I think your prices are high. Will you take $5,000
for Hi- Vu? If not, then I'll have to settle for Lo- Vu, and I agree to pay the $3,000 you ask, only I hope
you may be willing to consider some concession if I pay the whole $3,000 in advance."
On May 17, Tenant learned that Shore had sold Shore House to Jones for Jones's immediate
occupancy.
On May 18, Cliff received Tenant's letter and Cliff immediately telegraphed Tenant, "No change
in prices. See my letter of the 16th." Tenant received Cliff's telegram the same day, May 18. Later that
day Tenant also received Cliff's letter of May 16, which read, "Our deal is off." Tenant immediately
wrote Shore, "I'll take Shore House per your letter of the 11 th."
The normal course of post between Tenant and Shore and Tenant and Cliff was one day.
You may assume that all requirements of the Statute of Frauds have been satisfied. What rights,
if any, does Tenant have against Shore and against Cliff? Discuss.
2. CONTRACTS EXAM QUESTIONS

EXAM QUESTION NO.2

In response to Buyer's request for a firm annual price on fuel oil, Seller wrote Buyer on December
20: "I offer to supply you with any #2 fuel oil ordered during next year beginning January 1. Price: 641t
per gallon, to be ordered only in 3,000-gallon tank cars. Because of your past favors, this offer will not
be withdrawn during the year." On December 22, Buyer wrote: "I accept your offer." Seller received
Buyer's communication on December 24.
During January and February, Buyer ordered 400 tank cars of fuel oil, the oil was delivered, and
Buyer paid for it at the rate of 641t per gallon. Early in March, the market price of #2 fuel oil rose to
671t per gallon. On March 9, Seller mailed a letter to Buyer reading: "I revoke my December offer."
Seller's letter was misdirected by the post office and did not arrive until March 16. Buyer placed the
following March orders, all by mail: On March 10, for 50 tank cars; on March 17, for 50 tank cars; on.
March 30, for 100 tank cars. Seller received all orders two days after mailing but refused to fill any of
the March orders.
On April 5, Buyer purchased 200 tank cars of #2 fuel oil from Petro (a competitor of Seller) at
Petro's regular price of 681t per gallon, although Buyer admits that by shopping around he could have
purchased the oil at 671t per gallon.
What rights (if any) does Buyer have against Seller? Discuss.
 CONTRACTS EXAM QUESTIONS 3.

EXAM QUESTION NO.3

On April 1 , Ann Star, a young television personality, signs a contract with Bland Television
Network to perform May 1 in a one-hour "live" T.V. show from 8 to 9 p.m. Bland agrees to pay Star
$1,000 for this performance. The contract also provides that if for any reason Star does not appear as
scheduled, she will "forfeit the sum of $25,000 to Bland as liquidated damages."
On April 10, Star informs Bland that she is suffering from acute fatigue and that her physician
probably will not allow her to appear as scheduled. Bland immediately urges her in writing to fulfill her
contractual obligations.
On April 15, Star tells Bland that she has miraculously recovered and will appear as scheduled on
the May 1 show.
On April 23, Bland informs Star that, due to her unpredictability, it has hired actress Prima
Donna as of that date and will not require Star's services.
On April 28, Prima Donna breaks her leg in an accident. Bland immediately wires Star that it has
reconsidered the whole matter and will hold her to the original contract to perform on May 1.
On the evening of May 1, Star appears at the studio ready to perform, but Bland, acting under
orders from the Federal Communications Commission, cancels the show in order to broadcast a special
address by the President of the United States.
Discuss the legal implications of the foregoing events.
4. CONTRACTS EXAM QUESTIONS

EXAM QUESTION NO.4

P and D, who were casual acquaintances, resided in communities 100 miles apart. On February 1,
P wrote D as follows:

I have decided to give up my farm, Blackacre, and move to town. 1 thought you
might consider buying it from me because you have often said that you were
going to move to a farm after retirement. 1 will sell you Blackacre for $100,000.
I'll let you have 10 days to think about it and to talk it over with your wife. In
other words, I'll keep the offer open and will not withdraw it during this time.

Sincerely yours,

/s/P
February 1, 2003

As a result of a delay in the mails, P's letter did not arrive in the normal course on February 2, but
was received on February 4. On February 8, P deposited in the mail a letter addressed to D in which he
said, among other things, "Blackacre deal off." This letter was not received by D until February 12, a
few hours after D had posted an acceptance of the offer. The letter of acceptance was received in due
course on February 13. In the correspondence that followed, P denied that any contract resulted, and D
did not tender any money to P. On February 20, D delivered to A a writing that stated, "I hereby
transfer to A my right to Blackacre under my contract with P for $100, receipt of which is hereby
acknowledged. /s/D." On February 25, D gave a similar instrument to B, who immediately presented it
to P. The next day A presented his claim to P.
What are the rights and liabilities of all the parties? Discuss.