AIC 301 Study Guide Exam
Questions and Answers (Verified
Answers) Most Recent exam
COMPLETE (Latest Update 2026)
UPDATE!!
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
something of value that is given in return for a promise - 🧠 ANSWER
✔✔consideration
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2026. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
3
, a contract must serve a legal purpose to be legally enforceable - 🧠
ANSWER ✔✔legal purpose
contracts must be in a proper, legally stipulated form to be binding - 🧠
ANSWER ✔✔form required by law
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 contract where one party promises to pay for the act of the other party - 🧠
ANSWER ✔✔unilateral contract
contract where nothing more is required of either party to be fulfilled - 🧠
ANSWER ✔✔executed contract
Questions and Answers (Verified
Answers) Most Recent exam
COMPLETE (Latest Update 2026)
UPDATE!!
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
something of value that is given in return for a promise - 🧠 ANSWER
✔✔consideration
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2026. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
3
, a contract must serve a legal purpose to be legally enforceable - 🧠
ANSWER ✔✔legal purpose
contracts must be in a proper, legally stipulated form to be binding - 🧠
ANSWER ✔✔form required by law
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 contract where one party promises to pay for the act of the other party - 🧠
ANSWER ✔✔unilateral contract
contract where nothing more is required of either party to be fulfilled - 🧠
ANSWER ✔✔executed contract
