AIC 301 Expanding Your Claims Perspec ve| Associate
In Claims - Ins tutes Course 2
Contract
a legally enforceable agreement between two or more par es
Promisor
The party to a contract making a promise.
Promisee
The party to a contract to whom a promise is made.
Privity of contract
The rela onship that exists between the par es to a contract
Third-party beneficiary
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 contrac ng par es
Breach of contract
The failure, without legal excuse, to fulfill a contractual promise
Offeror
The party to a contract who promises to give something in return for a promise or an act by
another party
Offeree
The party to a contract who makes a promise or acts in return for something offered by another
party
Uniform Commercial Code (UCC)
A code of federal laws that govern commercial transac ons in the United States
A model code that has been adopted in whole or in part by each state and whose purpose is to
provide a consistent legal basis for business transac ons throughout the United States and its
territories
,Bilateral contract
A contract in which each party promises a performance
Unilateral contract
A contract in which only one party makes a promise or undertakes the requested performance
Executed contract
A contract that has been completely performed by both par es
Executory contract
A contract that has not been completely performed by one or both of the par es
Express contract
A contract whose terms and condi ons are explicitly stated
Implied contract
A contract whose terms and inten ons are indicated by the ac ons of the par es to the
contract and the surrounding circumstances
Implied-in-fact contract
A contract that is not express but that the par es presumably intended, either by tacit
understanding or by the assump on that it existed
Implied-in-law contract
An obliga on that is not an actual contract but that is imposed by law because of the par es'
conduct or some special rela onship between them or because one of them would otherwise
be unjustly enriched
Voidable contract
A contract that one of the par es can reject (avoid) based on some circumstance surrounding
its execu on.
Void contract
An agreement that, despite the par es' inten ons, never reaches contract status and is
therefore not legally enforceable or binding.
Mutual assent
The act of two or more par es coming together to agree to the terms of a contract.
, Fraud
An inten onal misrepresenta on resul ng in harm to a person or organiza on
Representa on
A statement of alleged fact
Material fact
A fact that is significant to a decision or ma3er at hand
Rescission
A legal act of canceling something (like a contract) and making it void
Unilateral mistake
A percep on by one party to a contract that does not agree with the facts
Bilateral mistake
A percep on by both par es to a contract that does not agree with the facts.
Duress
The use of restraint, violence, threats of violence, or wrongful pressure to compel a party to act
contrary to his or her wishes or interests
Undue influence
The improper use of power or trust to deprive a person of free will and subs tute another's
objec ve, resul ng in lack of genuine assent to a contract
Parol evidence rule
A provision that prevents the terms of a contract from being modified by evidence of oral or
other agreements a6er the contract has been wri3en
Statute of frauds
A law to prevent fraud and perjury by requiring that certain contracts be in wri ng and contain
the signature of the party responsible for performing that contract.
Real property (realty)
Tangible property consis ng of land, all structures permanently a3ached to the land, and
whatever is growing on the land.
In Claims - Ins tutes Course 2
Contract
a legally enforceable agreement between two or more par es
Promisor
The party to a contract making a promise.
Promisee
The party to a contract to whom a promise is made.
Privity of contract
The rela onship that exists between the par es to a contract
Third-party beneficiary
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 contrac ng par es
Breach of contract
The failure, without legal excuse, to fulfill a contractual promise
Offeror
The party to a contract who promises to give something in return for a promise or an act by
another party
Offeree
The party to a contract who makes a promise or acts in return for something offered by another
party
Uniform Commercial Code (UCC)
A code of federal laws that govern commercial transac ons in the United States
A model code that has been adopted in whole or in part by each state and whose purpose is to
provide a consistent legal basis for business transac ons throughout the United States and its
territories
,Bilateral contract
A contract in which each party promises a performance
Unilateral contract
A contract in which only one party makes a promise or undertakes the requested performance
Executed contract
A contract that has been completely performed by both par es
Executory contract
A contract that has not been completely performed by one or both of the par es
Express contract
A contract whose terms and condi ons are explicitly stated
Implied contract
A contract whose terms and inten ons are indicated by the ac ons of the par es to the
contract and the surrounding circumstances
Implied-in-fact contract
A contract that is not express but that the par es presumably intended, either by tacit
understanding or by the assump on that it existed
Implied-in-law contract
An obliga on that is not an actual contract but that is imposed by law because of the par es'
conduct or some special rela onship between them or because one of them would otherwise
be unjustly enriched
Voidable contract
A contract that one of the par es can reject (avoid) based on some circumstance surrounding
its execu on.
Void contract
An agreement that, despite the par es' inten ons, never reaches contract status and is
therefore not legally enforceable or binding.
Mutual assent
The act of two or more par es coming together to agree to the terms of a contract.
, Fraud
An inten onal misrepresenta on resul ng in harm to a person or organiza on
Representa on
A statement of alleged fact
Material fact
A fact that is significant to a decision or ma3er at hand
Rescission
A legal act of canceling something (like a contract) and making it void
Unilateral mistake
A percep on by one party to a contract that does not agree with the facts
Bilateral mistake
A percep on by both par es to a contract that does not agree with the facts.
Duress
The use of restraint, violence, threats of violence, or wrongful pressure to compel a party to act
contrary to his or her wishes or interests
Undue influence
The improper use of power or trust to deprive a person of free will and subs tute another's
objec ve, resul ng in lack of genuine assent to a contract
Parol evidence rule
A provision that prevents the terms of a contract from being modified by evidence of oral or
other agreements a6er the contract has been wri3en
Statute of frauds
A law to prevent fraud and perjury by requiring that certain contracts be in wri ng and contain
the signature of the party responsible for performing that contract.
Real property (realty)
Tangible property consis ng of land, all structures permanently a3ached to the land, and
whatever is growing on the land.
