Contracts
Contracts covers the formation, performance, and enforcement of agreements, including both common-law rules and the UCC for the sale of goods. This chapter reviews general principles tested on the MBE; the UCC and jurisdictions modify some rules.
Formation
A basic contract generally requires an offer, an acceptance, and consideration (a bargained-for exchange). At common law, the mirror-image rule requires the acceptance to match the offer's terms, while the UCC relaxes this rule for the sale of goods.
Consideration and Enforceability
Consideration must be a bargained-for exchange of value. Under the traditional pre-existing duty rule, promising to do what one is already legally bound to do is generally not sufficient consideration, subject to recognized exceptions. Certain contracts, such as those for the sale of land, must satisfy the Statute of Frauds by being evidenced in writing.
Performance and Remedies
Once formed, contracts impose duties whose breach may give rise to remedies, most commonly damages designed to put the injured party in the position it would have occupied had the contract been performed. Equitable remedies such as specific performance apply in limited circumstances.