Section 2: 15–25%R4
Contracts
Exam Insight
Contracts is the most heavily tested business-law area on REG. The single biggest decision in every question is whether common law or UCC Article 2 governs — get that wrong and the formation, modification, and battle-of-the-forms answers all fall apart.
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What AICPA Wants You to Know
- 1Determine whether common law or UCC Article 2 governs a contract
- 2Apply the three formation elements: offer, acceptance, and consideration
- 3Apply the UCC firm offer, mailbox rule, and §2-207 battle of the forms
- 4Identify which contracts must be in writing under the Statute of Frauds
- 5Distinguish the contract defenses (fraud, duress, mistake, capacity, illegality)
- 6Select the correct remedy for breach and apply the parol evidence rule