Section 2: 15–25%R4

Contracts

Exam insight

Contracts is the most heavily tested business-law area on REG. The first call you make in every question is whether common law or UCC Article 2 governs. Get that one wrong and everything after it (formation, modification, the battle of the forms) falls apart too.

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

Patterns in this topic

The exam re-skins the same archetypes. Recognize these here, then drill them in the Pattern Lab.

The Contract RulesSort common law from UCC Article 2 first; the mirror image, the writing rules, and the remedies all fork from there.

Exam tip

Study smarter: before you expand each card, cover the screen and try to recall what the concept means from its title alone. Retrieving it from memory builds the recall the exam actually tests, and it beats re-reading.