In process of interpreting contract terms, the court will apply which of the following rules?
In order to apply the Parol Evidence Rule, it is necessary to assess
GlassGlassGlass, LLC manufactures glass used in specialty industrial and defense applications. Its salesperson provides a sample of its SuperGlass material to VehicO, Inc., a manufacturer of specialized law enforcement vehicles. VehicO purchases a quantity of SuperGlass and finds that it does not perform as well as the sample did. The contract between GlassGlassGlass, LLC and VehicO, Inc. makes no reference to any warranty. Choose the best answer
Seller enters into a contract with Buyer to sell three used motorcycles to Buyer for $3,000 each. The written contract is completely integrated and contains a no-oral-modification provision. After the written contract is signed and before the contract is performed, Buyer and Seller agree over the telephone to increase the number of motorcycle to four, but to keep the price the same: $3,000 each. Choose the best answer.
Section 2-202 of the Uniform Commercial Code differs from the common law Parol Evidence Rule in which way?
Alan signs a purchase agreement to buy a used car from Dealer. The purchase agreement is a complete integrated agreement, prepared by the Dealer. However, the purchase agreement describes the vehicle purchased as a “Red 2015 Chevy Silverado.” There are two red Chevy Silverado vehicles on the Dealer’s lot, and a dispute arises regarding which one was the subject of the purchase agreement. Choose the best answer:
Which of the following statements regarding the Parol evidence rule is false?
AGRO agrees to provide as many bales of “elephant feed” as the Municipal Zoo requires. The agreement does not include an ending date. After performing the contract for two years, AGRO wonders when its obligations end. Choose the best answer:
Where a contract for the sale of goods fails to include a term, the UCC frequently provides a _______________ filling term.
Buyer and Seller enter into a written, completely integrated agreement for the sale of 300 “grade A” aluminum gaskets. A dispute arises regarding the meaning of “grade A.” Choose the best answer:
Which answer best describes priority of evidence of parties’ intent?
AGRO contracts to hire Consultant to review AGRO’s human resources policies and “prepare a report containing all of Consultant’s recommendations for AGRO’s policies.” Consultant wonders what its specific obligations are to AGRO. Choose the best answer:
Which of the following is a false statement about the Parol Evidence Rule?
CarterCo contacts to sell and DanaCo to buy 2,000 watches specially designed for use by divers who perform industrial underwater welding. The agreement describes the watches as “deep ocean-rated diving timepieces.” Several of the watches fail when used by divers at a depth below 500 meters. CarterCo claims that 500 meters is too deep for the watches. DanaCo claims that the watches failed between 500 and 750 meters, and that such use constitutes “deep ocean” diving. DanaCo seeks to introduce evidence that when the first eight watches failed, CarterCo replaced them. Which answer best describes DanaCo’s evidence:
Seller enters into a contract with Buyer to sell three bulldozers to Buyer for $240,000 each. The written contract is completely integrated but does not contain a no-oral-modification provision. After the written contract is signed and before the contract is performed, Buyer and Seller agree over the telephone to increase the number of bulldozers to four, but to keep the price the same: $240,000 each. Assume the CISG applies to this transaction. Choose the best answer.
True or False: Contract interpretation involves a legal determination of the effect given to the parties’ intent by the applicable governing law, but contract construction is a factual search for what the parties intended.
“A merger clause is a contract provision that seeks to notify the reader that some of the terms of the agreement must be found in another written agreement.” Is that statement correct?
A “no oral modification clause” is unnecessary in a completely integrated agreement because any evidence of subsequent modification of a contract will be excluded by the Parol Evidence Rule.
AGRO agrees to provide as many bales of “elephant feed” as the Municipal Zoo requires between January 1 and December 31 at a price of $12 per bale. After performing the contract for two months, AGRO claims that it is not bound to the contract “because the Zoo is not obligated under the contract and it is therefore illusory.” Municipal Zoo argues that the contract is a valid, enforceable requirements contract. Who is right? Fully explain your answer, including any rule(s) necessary to support it.
AlphaCo purchases 100 dump truck tires from BetaCo. Prior to the purchase the president of AlphaCo speaks with BetaCo’s sales representative regarding whether the tires will work well in the extreme mud conditions where AlphaCo’s trucks frequently work. BetaCo’s sales representative tells him that the tires are not specifically designed for extreme mud conditions but that they will “work perfectly in the kind of mud you are describing to me.” BetaCo claims that the sale of the tires is not subject to an implied warranty of fitness for a particular purpose. Is BetaCo right? Fully explain your answer, including any rule(s) necessary to support it.