Term of Agreement - Contracts - Exam, Exams of Contract Law

Download Term of Agreement - Contracts - Exam and more Exams Contract Law in PDF only on Docsity! Student Exam # __________ Sylvester: Contracts II, Final Exam, Spring 2010 Page 1 of 13 CONTRACTS II FINAL EXAMINATION Professor Sylvester Golden Gate University School of Law SPRING SEMESTER 2010 INSTRUCTIONS 1. The two parts of this closed book examination are worth a possible combined total of 100 points. a. Part One consists of 25 multiple-choice questions scored at two points each. Thus, Part One is worth a possible total of 50 points. Answer each multiple-choice question by indicating, on the ParSCORE answer sheet provided, the response you believe to be most correct. Follow the instructions on the form. If you change an answer, place a clear X through the wrong answer and mark the correct answer. A machine will score the exam and ambiguities will be counted as wrong answers. You will receive zero points for questions answered incorrectly. Points will not be deducted for incorrect answers in Part One. b. Part Two consists of one essay question worth a possible total of 50 points. 2. You will have a total of two and one half hours (2.5 hours) to complete both parts of this examination. It is strongly suggested that you do the parts of this examination in the order in which they are presented, and that you aim to complete Part One in approximately one hour. It is strongly suggested that you not spend any more than 75 minutes on Part One. Devote the remainder of your time to Part Two. In grading the essay portion of your answer, points will be awarded for organization and clarity, so take time to organize a succinct but comprehensive response. 3. Assume that the Uniform Commercial Code has been enacted in all relevant jurisdictions and that the state Supreme Court has adopted all relevant sections of the Restatement (2d) of Contracts. 4. Write your student examination number in the space provided in the upper right corner of each page of this examination. Also write your exam number on your exam envelope, your ParSCORE answer sheet and any used blue books. Do not use your name, student ID number or Social Security Number on any exam materials. 5. You may mark on this examination and/or use it for scratch paper (no such marks will be considered in determining your score), but failure to return this exam with all its pages intact will result in a failing grade. 6. At the conclusion of the exam, return all exam materials to the exam envelope and submit it to the proctor. This examination must be returned. Do not seal the envelope. GOOD LUCK! Student Exam # __________ Sylvester: Contracts II, Final Exam, Spring 2010 Page 12 of 13 PART II Grower grows strawberries on her farm in Madera County, California. In 2006, Grower entered into a written agreement with Foodco (a food wholesaler). The agreement was written by Foodco, and provides that “During the ten year term of this Agreement, Grower shall offer to sell strawberries grown on her Madera County farm to Foodco for $25 per 100 pounds. Foodco shall have the right, in its sole discretion, to reject any strawberries that it finds unsatisfactory. Grower shall not sell strawberries (including strawberries rejected by Foodco) to any other company without Foodco’s written consent.” When housing prices in the San Francisco Bay area soared, two new housing subdivisions were built immediately adjacent to Grower’s farm. Vehicular traffic increased dramatically. Sensing a new business opportunity, Grower decided to create roadside fruit markets on the two edges of her farm that were bordered by the busiest roadways. In 2007 she entered into a written agreement with Builder (a general contractor) to construct identical buildings in the two locations she specified. Among other things, the Agreement provided that (1) Builder was to be paid $100,000 for each of the buildings; (2) for each building, he would be paid $25,000 upon completion of each of four phases of construction – provided that Grower’s architect (“Architect”) certified that the work was satisfactory; and (3) it was absolutely essential that both buildings be fully functional in time for summer sales beginning in May 2008. Builder began work immediately. Grower was disappointed, however, to see that Builder apparently planned to construct one building at a time. In light of the short deadline, Builder had assured Grower that he would dedicate enough workers and equipment to construct the two structures simultaneously. However, this commitment by Builder did not make it into the very detailed written agreement that Builder prepared. Nonetheless, work on the first building seemed to go smoothly, and Grower made the last two $25,000 payments on the first building even though Architect had moved away and was unavailable to inspect and certify the work. Grower expected Builder to start work on the second building immediately, because it had taken six months to complete the first one. By the end of January 2008, however, Builder had not started work on the second building. In February 20008, Grower called Builder and demanded that he start work on the second building immediately. “If you do not start work this week,” she said, “the deal is off, and I will find someone else who knows how to stay on schedule!” “Calm down,” replied Builder. “I have never missed a deadline.” Grower did not reply. Builder started work on the second building three weeks later, while Grower was away on vacation. When Grower returned, Builder had finished the first phase of construction on the second building. He submitted an invoice for $25,000. Grower refused payment, saying that Builder had not submitted the required certificate from Architect and that, in any event, she had canceled the contract after their February telephone conversation.