Gavin Howe
Contract law is a branch of law that deals with the creation and enforcement of contractual agreements. It is tested in various law school examinations and licensing exams for attorneys, such as the Multistate Bar Examination (MBE) and state-specific bar exams. These exams assess knowledge of contract law principles, including contract formation, performance, breach, discharge, defences, remedies, and third-party rights. The MBE, in particular, covers both common law and the Uniform Commercial Code (UCC), with a focus on sales of goods. In addition to academic examinations, contract law is also tested in court when disputes arise over contractual agreements. English courts, for example, have established tests to determine the validity and enforceability of contracts, including the business efficacy test and the test of foreseeability.
| Characteristics | Values |
|---|---|
| Exam | California Bar Exam, Multistate Bar Examination (MBE), Multistate Essay Examination (MEE), State-Specific Essay Examination, State Bar Examination |
| Exam format | Multiple-choice questions, essay questions |
| Topics | Contract formation, contract breaches, contract defences, remedies, damages, warranties, specific performance, common law, Uniform Commercial Code (UCC), unilateral and bilateral contracts |
| Subtopics | Offer, acceptance, consideration, parol evidence rule, statute of frauds, perfect-tender rule, contract termination, knock-out rule, mirror image rule |
| Number of questions | 175 scored multiple-choice questions, 25 on contracts |
| Number of essays | Once or twice a year |
| Number of questions per category | 50% on formation of contracts or performance, breach, and discharge; 50% on defences to enforceability, contract content and meaning, remedies, and third-party rights |
| Number of questions per subcategory | 6-7 on formation of contracts, 6-7 on UCC Article 2, revised Article 1 |
| Recommended study materials | Concepts and Case Analysis in the Law of Contracts, Contracts: Examples & Explanations by Brian A. Blum, Contracts Stories by Douglas G. Baird, High Court Case Summaries on Contracts, Exam Pro on Contracts, Objective by Robert D. Brain, Friedman's Contracts, Second Edition by Joel Wm Friedman, Gilbert Law Summaries on Contracts by Melvin A. |
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What You'll Learn
Law School Examinations
Contract law is a core subject in law school curricula, and it is commonly included in law school examinations. These exams aim to evaluate students' comprehension of key concepts and their ability to apply them to practical scenarios. The questions are designed to mirror actual legal situations and may vary in length, ranging from short to medium and long essays.
Exam Structure and Content:
Study Aids and Preparation:
Preparing for law school examinations in contract law involves a comprehensive understanding of the subject matter. Students can benefit from utilising study aids, such as exam guides, practice tests, and case summaries. Exam guides, such as "Exam Pro on Contracts, Objective by Robert D. Brain," offer objective questions, detailed answer explanations, and easy-to-understand overviews of critical issues. Case summaries, like "Contracts Stories" by Douglas G. Baird, provide historical and cultural context to leading contract law cases, enriching students' understanding.
Essay Writing Techniques:
Given the essay-based nature of many law school examinations, developing strong essay writing skills is essential. Students should familiarise themselves with highly tested topics and practice essay questions. A standard introduction for essays is recommended, including a discussion of applicable law, such as Article 2 of the Uniform Commercial Code (UCC) or common law. Additionally, addressing contract formation, even briefly, can enhance the completeness of the answer.
Multistate Bar Examination (MBE):
The Multistate Bar Examination (MBE) is a crucial component of law school assessments. It includes multiple-choice questions on contract law, accounting for approximately 25 out of 175 scored questions. Students are advised to prepare by understanding the organisation, topics, and weighting of the exam. The ability to determine whether common law or UCC principles apply to a given scenario is vital, as the distinction can impact the outcome.
In conclusion, law school examinations in contract law require a solid grasp of theoretical concepts and their practical application. Students can enhance their performance by utilising study aids, understanding highly tested topics, and honing their essay writing skills. The MBE, a significant component of law school assessments, demands a strategic approach, emphasising the distinction between common law and UCC principles.
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The State Bar Exam
To prepare for the State Bar Exam, law graduates should gain a comprehensive understanding of contract law and its application. This includes familiarizing themselves with the basic elements of a contract, such as offer, acceptance, and consideration. Additionally, it is essential to know the distinctions between unilateral and bilateral contracts and the rules for creating and terminating offers. Understanding the distinctions between common law and the Uniform Commercial Code (UCC) is crucial, as both are regularly tested. While common law applies to most contracts, UCC Article 2 specifically pertains to contracts for the sale of goods.
In addition to the MBE, the State Bar Exam may include other components, such as the Multistate Essay Examination (MEE), state-specific essay examinations, and performance tests. The MEE also covers contract law and may test topics such as contract formation, the parol evidence rule, statute of frauds, and damages. State-specific essay examinations allow for the exploration of unique aspects of contract law within a particular state's jurisdiction. Performance tests, such as the Multistate Performance Test (MPT), assess an individual's ability to apply their knowledge of contract law in practical scenarios.
Overall, the State Bar Exam is a comprehensive assessment that ensures law graduates possess the necessary knowledge and skills to practice law within a specific state. By testing contract law, the exam reinforces the understanding of contractual agreements and their enforcement, which is essential for legal practitioners to protect the rights and interests of their clients.
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Multistate Bar Examination (MBE)
The Multistate Bar Examination (MBE) is a standardised exam consisting of 200 multiple-choice questions that assess a candidate's ability to apply fundamental legal principles and reasoning in legal practice. It is a key component of the bar exam in every U.S. jurisdiction except Puerto Rico and Louisiana. The National Conference of Bar Examiners (NCBE) administers the MBE, which prospective attorneys must pass to practice law in most U.S. jurisdictions.
The MBE is only one of several measures that a board of bar examiners may use in determining competence to practice. Each jurisdiction decides its own policy regarding the relative weight given to the MBE and other scores. The MBE is a component of the Uniform Bar Examination (UBE). Jurisdictions that administer the UBE weigh the MBE component at 50%. In some states, it is worth less. The MBE is a secure exam protected by US copyright laws. NCBE strictly prohibits copying, reproducing, or disclosing any MBE questions or answers.
The MBE is developed by NCBE and administered by user jurisdictions as part of the bar examination. Applicants register for the MBE by applying to a jurisdiction for the bar exam. The MBE is offered on the last Wednesday in February and the last Wednesday in July of each year. The MBE is scored on a scale ranging from 40 (low) to 200 (high). “Raw” MBE scores (i.e. the number of correct answers out of 175 scored MBE questions) are scaled using a statistical process called “equating”, which accounts for differences in difficulty between exams. For example, if an exam is more difficult than a previous exam, more points will be added to an examinee’s raw score. The converted score is what is released to examinees. Raw scores are no longer released to examinees.
The MBE does not test any state-specific law. Instead, it tests majority law and federal rules. Every examinee in every state takes the same Multistate Bar Exam. The MBE is a critical step for aspiring legal professionals to standardise legal knowledge, streamline score portability, and foster fairness.
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Court of Law
A court of law is one of the primary settings in which contract law is tested. When a contract is breached, the non-breaching party can sue, and the case will be heard in a court of law. The court will determine whether the contract was valid and enforceable, and if so, whether the breaching party must indemnify the non-breaching party.
The validity of a contract is determined by various factors, including the presence of essential terms, the mutual assent and consideration of both parties, and compliance with statutory requirements, such as the Statute of Frauds, which mandates that certain contracts must be in writing. For instance, the Virginia Supreme Court upheld a contract written on a napkin as valid, given the existence of mutual assent and consideration. In contrast, a contract with indefinite essential terms may be deemed invalid.
Courts also assess the performance of contractual obligations. Full performance signifies the completion of a contract, whereas partial or incorrect performance can lead to a lawsuit. The court may void a contract if it finds that a party knowingly misrepresented or lied during its formation, constituting fraud.
Additionally, courts evaluate damages in cases of breach of contract. The non-breaching party must demonstrate actual losses to receive damages. Legitimate liquidated damages are permitted in common law jurisdictions, while penalties are generally prohibited. Specific performance, where the court orders the partial or complete performance of the contract, may be required in certain circumstances.
Courts also interpret uncertain or incomplete clauses in contracts. If a contract includes a severability clause, affected clauses can be severed and voided if they do not impact the overall contract. In the case of mutual mistake, where both parties are mistaken about the terms, the court may grant relief if the mistake is fundamental to the contract's performance.
Furthermore, courts may apply equitable doctrines, such as promissory estoppel, to enforce promises that are not considered contracts. In such cases, the non-breaching party may be awarded reliance damages if they can demonstrate reasonable reliance on the assurances of the other party.
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Transactional Firm Environments
Contract attorneys often work in a transactional firm environment and may not be in court very often. Contract attorneys must be familiar with the contract law of their state, the different types of contracts, and what their clients want to achieve from any contractual relationship they enter into.
Contract law is the branch of law that deals with the creation of contractual agreements and their enforcement in court. Contracts are made between parties, often in a business relationship, that govern the terms of their relationship and provide remedies for breaking the terms of the contract. These remedies are often decided and enforced in a court of law. The aim of contract law is to ensure parties enter contractual agreements with full knowledge of their rights and responsibilities, as well as the agreement they are entering into.
Contract attorneys can work in small or large firm environments or as in-house counsel for large companies. They can also offer support to litigation teams and advise on company policies and standards. Contract law is regularly tested on the California Bar Exam, and from February 2025, the exam will introduce multiple-choice questions developed by Kaplan to replace the traditional MBE questions. The updated exam will consist of 200 questions administered over four 90-minute sessions, allowing for remote and in-person test options.
The Multistate Bar Examination (MBE) is a significant component of the bar exam, with about 25 out of 175 scored multiple-choice questions focusing on contracts. The questions are divided into six categories, with 50% falling under the formation of contracts or performance, breach, and discharge, and the remaining 50% covering defences to enforceability, contract content and meaning, remedies, and third-party rights. The MBE covers both common law and the Uniform Commercial Code (UCC), with a focus on the sale of goods.
Students can prepare for the bar exam by gaining legal experience through internships, part-time jobs, or school programs. They can also take classes in contract drafting and practice essay questions to familiarise themselves with highly tested topics in contract law.
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Frequently asked questions
Contract law is tested in the US in the Multistate Bar Examination (MBE) and the State Bar Examination. The State Bar Exam may contain any variation of the MBE, the Multistate Essay Examination (MEE), State-Specific Essay Examination, State-Specific Civil and Criminal Procedure and Evidence Exam, and the Multistate Performance Test (MPT).
The Multistate Bar Examination consists of 175 scored multiple-choice questions, 25 of which will be on contract law.
The California Bar Exam consists of multiple-choice questions and essays. The essays cover topics such as contract formation, the parol evidence rule, the Statute of Frauds, and common law.
Some examples of contract law cases include Hadley v Baxendale, Anglia Television Ltd v. Reed, and Britton v. Turner.
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