UCLA-LAW-220 BUSINESS LAW EXAM
COMPREHENSIVE PREDICTOR 2026/2027 Q&A
1. Which of the following elements is NOT required for a valid contract
under common law?
A. Offer and acceptance
B. Consideration
C. Written documentation
D. Legal capacity of parties
Correct Answer: C
Explanation: A written document is not required for all contracts;
many oral contracts are enforceable. The essential elements are
offer/acceptance, consideration, mutual assent, legal capacity, and
lawful purpose. The Statute of Frauds requires writing only for
specific contract types.
2. A merchant sends a written confirmation of a contract to another
merchant within a reasonable time after an oral agreement. The
receiving merchant does not object within 10 days. Under the UCC,
what is the legal effect?
A. The contract is unenforceable due to lack of writing
B. The confirmation satisfies the Statute of Frauds between
merchants
C. The contract is voidable at the receiving merchant's option
D. The confirmation constitutes a new offer
Correct Answer: B
Explanation: Under UCC § 2-201(2), between merchants, a written
confirmation sent within reasonable time satisfies the Statute of
Frauds against the recipient who does not object in writing within
10 days.
,3. Which doctrine allows a contract to be enforced despite lack of
consideration when one party reasonably and detrimentally relies on
a promise?
A. Undue influence
B. Promissory estoppel
C. Quantum meruit
D. Unjust enrichment
Correct Answer: B
Explanation: Promissory estoppel enforces promises without
consideration when reliance is foreseeable and detrimental.
Quantum meruit and unjust enrichment relate to quasi-contracts,
while undue influence involves improper persuasion.
4. In a scenario where A threatens to burn B's business unless B signs a
contract, what vitiating factor is present?
A. Mistake
B. Duress
C. Misrepresentation
D. Unconscionability
Correct Answer: B
Explanation: Duress involves improper threats that leave the victim
no reasonable alternative. Physical or economic threats to force
contract formation constitute duress, making the contract voidable.
5. What is the primary difference between a term and a representation
in contract law?
A. Terms are always oral; representations are always written
B. Breach of term allows damages; breach of representation may
allow rescission
C. Representations are more important than terms
D. Terms cannot be breached; only representations can
Correct Answer: B
Explanation: A term is a contractual obligation; breach permits
damages. A representation is a pre-contractual statement; if false
, (misrepresentation), it may allow rescission. The importance and
contractual status distinguish them.
6. Which of the following would NOT discharge a contract by frustration
of purpose?
A. A venue is cancelled due to a natural disaster
B. A coronation parade is cancelled, making rental of viewing
premises useless
C. One party simply changes their mind about the contract
D. A government regulation makes performance illegal
Correct Answer: C
Explanation: Frustration requires an unforeseeable event
destroying the contract's purpose through no fault of either party.
Changed mind is not frustration; it's breach. Natural disasters,
cancellations, and regulatory changes may frustrate purpose.
7. Under the UCC, what happens when an acceptance contains
additional terms not in the original offer between merchants?
A. The contract is void
B. The additional terms automatically become part of the contract
C. The additional terms are proposals for addition unless objected to
D. The acceptance becomes a counteroffer
Correct Answer: C
Explanation: UCC § 2-207(2) states additional terms between
merchants become part of the contract unless they materially alter
it, the offer expressly limits acceptance, or objection is given within
reasonable time.
8. What remedy is available for breach of a contract for the sale of
unique goods?
A. Compensatory damages only
, B. Specific performance
C. Punitive damages
D. Nominal damages only
Correct Answer: B
Explanation: Specific performance is available for unique goods
(e.g., art, antiques) under UCC § 2-716 when monetary damages are
inadequate. Compensatory damages are standard but may be
insufficient for unique items.
9. Which type of misrepresentation allows rescission but NOT damages
at common law?
A. Fraudulent misrepresentation
B. Negligent misrepresentation
C. Innocent misrepresentation
D. Constructive fraud
Correct Answer: C
Explanation: Innocent misrepresentation allows rescission but
typically not damages at common law. Fraudulent
misrepresentation allows both rescission and damages. Negligent
misrepresentation may allow damages in tort.
10. In contract interpretation, what does the parol evidence rule
prohibit?
A. Any oral testimony in contract disputes
B. Evidence of prior or contemporaneous agreements that contradict
a fully integrated written contract
C. Evidence of subsequent contract modifications
D. Evidence of trade usage and course of dealing
Correct Answer: B
Explanation: The parol evidence rule bars evidence of
prior/concurrent agreements contradicting a fully integrated
writing. It doesn't bar evidence of subsequent modifications, trade
usage, course of dealing, or evidence to clarify ambiguities.
COMPREHENSIVE PREDICTOR 2026/2027 Q&A
1. Which of the following elements is NOT required for a valid contract
under common law?
A. Offer and acceptance
B. Consideration
C. Written documentation
D. Legal capacity of parties
Correct Answer: C
Explanation: A written document is not required for all contracts;
many oral contracts are enforceable. The essential elements are
offer/acceptance, consideration, mutual assent, legal capacity, and
lawful purpose. The Statute of Frauds requires writing only for
specific contract types.
2. A merchant sends a written confirmation of a contract to another
merchant within a reasonable time after an oral agreement. The
receiving merchant does not object within 10 days. Under the UCC,
what is the legal effect?
A. The contract is unenforceable due to lack of writing
B. The confirmation satisfies the Statute of Frauds between
merchants
C. The contract is voidable at the receiving merchant's option
D. The confirmation constitutes a new offer
Correct Answer: B
Explanation: Under UCC § 2-201(2), between merchants, a written
confirmation sent within reasonable time satisfies the Statute of
Frauds against the recipient who does not object in writing within
10 days.
,3. Which doctrine allows a contract to be enforced despite lack of
consideration when one party reasonably and detrimentally relies on
a promise?
A. Undue influence
B. Promissory estoppel
C. Quantum meruit
D. Unjust enrichment
Correct Answer: B
Explanation: Promissory estoppel enforces promises without
consideration when reliance is foreseeable and detrimental.
Quantum meruit and unjust enrichment relate to quasi-contracts,
while undue influence involves improper persuasion.
4. In a scenario where A threatens to burn B's business unless B signs a
contract, what vitiating factor is present?
A. Mistake
B. Duress
C. Misrepresentation
D. Unconscionability
Correct Answer: B
Explanation: Duress involves improper threats that leave the victim
no reasonable alternative. Physical or economic threats to force
contract formation constitute duress, making the contract voidable.
5. What is the primary difference between a term and a representation
in contract law?
A. Terms are always oral; representations are always written
B. Breach of term allows damages; breach of representation may
allow rescission
C. Representations are more important than terms
D. Terms cannot be breached; only representations can
Correct Answer: B
Explanation: A term is a contractual obligation; breach permits
damages. A representation is a pre-contractual statement; if false
, (misrepresentation), it may allow rescission. The importance and
contractual status distinguish them.
6. Which of the following would NOT discharge a contract by frustration
of purpose?
A. A venue is cancelled due to a natural disaster
B. A coronation parade is cancelled, making rental of viewing
premises useless
C. One party simply changes their mind about the contract
D. A government regulation makes performance illegal
Correct Answer: C
Explanation: Frustration requires an unforeseeable event
destroying the contract's purpose through no fault of either party.
Changed mind is not frustration; it's breach. Natural disasters,
cancellations, and regulatory changes may frustrate purpose.
7. Under the UCC, what happens when an acceptance contains
additional terms not in the original offer between merchants?
A. The contract is void
B. The additional terms automatically become part of the contract
C. The additional terms are proposals for addition unless objected to
D. The acceptance becomes a counteroffer
Correct Answer: C
Explanation: UCC § 2-207(2) states additional terms between
merchants become part of the contract unless they materially alter
it, the offer expressly limits acceptance, or objection is given within
reasonable time.
8. What remedy is available for breach of a contract for the sale of
unique goods?
A. Compensatory damages only
, B. Specific performance
C. Punitive damages
D. Nominal damages only
Correct Answer: B
Explanation: Specific performance is available for unique goods
(e.g., art, antiques) under UCC § 2-716 when monetary damages are
inadequate. Compensatory damages are standard but may be
insufficient for unique items.
9. Which type of misrepresentation allows rescission but NOT damages
at common law?
A. Fraudulent misrepresentation
B. Negligent misrepresentation
C. Innocent misrepresentation
D. Constructive fraud
Correct Answer: C
Explanation: Innocent misrepresentation allows rescission but
typically not damages at common law. Fraudulent
misrepresentation allows both rescission and damages. Negligent
misrepresentation may allow damages in tort.
10. In contract interpretation, what does the parol evidence rule
prohibit?
A. Any oral testimony in contract disputes
B. Evidence of prior or contemporaneous agreements that contradict
a fully integrated written contract
C. Evidence of subsequent contract modifications
D. Evidence of trade usage and course of dealing
Correct Answer: B
Explanation: The parol evidence rule bars evidence of
prior/concurrent agreements contradicting a fully integrated
writing. It doesn't bar evidence of subsequent modifications, trade
usage, course of dealing, or evidence to clarify ambiguities.
