AIC 301 UPDATED STUDYGUIDE EXAM WITH
GRADED ANSWERS
4 examples of contracts that have to be in
writing - answer-1) sale of real estate
2) agreements that can't be performed within 1
year
3) transactions > $500
4) agreements to pay a debt owed
a contract where each party promises to
perform an act in exchange for an act by the
other party - answer-bilateral contract
a legally enforceable agreement between 2 or
more parties - answer-contract
not all __________________ are legally binding
contracts - answer-agreements
,6 elements of a legally binding contract -
answer-1) agreement
2) capacity
3) mutual assent
4) consideration
5) legal purpose
6) form required by law
party making a promise - answer-promisor
party to whom a promise is made - answer-
promisee
the relationship that exists between 2 parties
to a contract - answer-privity of contract
,a party cannot sue for breach of contract
without being in ______________ of contract with
the other party - answer-privity
a person who is not a party to a contract but
who benefits from it and has a legal right to
enforce the contract if it is breached by either
of the contracting parties - answer-third-party
beneficiary
the failure without legal excuse, to fulfill a
contractual promise - answer-breach of
contract
must include an offer and its acceptance -
answer-agreement
party making the offer - answer-offeror
, party who makes a promise or acts in return
for something offered by another party -
answer-offeree
offers must include _____________ terms and be
communicated to and received by the offeree -
answer-definite
if the offeree requests changes to conditions of
the offer - answer-counteroffer
all parties must be ______________
_________________ for a contract to be legally
binding - answer-mentally competent
the act of 2 or more parties deliberately
negotiating all terms to achieve consensus -
answer-mutual assent
GRADED ANSWERS
4 examples of contracts that have to be in
writing - answer-1) sale of real estate
2) agreements that can't be performed within 1
year
3) transactions > $500
4) agreements to pay a debt owed
a contract where each party promises to
perform an act in exchange for an act by the
other party - answer-bilateral contract
a legally enforceable agreement between 2 or
more parties - answer-contract
not all __________________ are legally binding
contracts - answer-agreements
,6 elements of a legally binding contract -
answer-1) agreement
2) capacity
3) mutual assent
4) consideration
5) legal purpose
6) form required by law
party making a promise - answer-promisor
party to whom a promise is made - answer-
promisee
the relationship that exists between 2 parties
to a contract - answer-privity of contract
,a party cannot sue for breach of contract
without being in ______________ of contract with
the other party - answer-privity
a person who is not a party to a contract but
who benefits from it and has a legal right to
enforce the contract if it is breached by either
of the contracting parties - answer-third-party
beneficiary
the failure without legal excuse, to fulfill a
contractual promise - answer-breach of
contract
must include an offer and its acceptance -
answer-agreement
party making the offer - answer-offeror
, party who makes a promise or acts in return
for something offered by another party -
answer-offeree
offers must include _____________ terms and be
communicated to and received by the offeree -
answer-definite
if the offeree requests changes to conditions of
the offer - answer-counteroffer
all parties must be ______________
_________________ for a contract to be legally
binding - answer-mentally competent
the act of 2 or more parties deliberately
negotiating all terms to achieve consensus -
answer-mutual assent
