AIC 301 Practice Test Questions and Answers
(2026/2027) | Detailed Study Guide | A+
• 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 contracting parties.
• 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 -✓✓A code of laws that govern commercial
transactions in the united states
• 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
parties.
• executory contract -✓✓A contract that has not been completely performed by
one or both of the parties.
• Express Contract -✓✓A contract whose terms and intentions are explicitly
stated.
• Implied Contract -✓✓A contract whose terms and intentions are indicated by the
actions of the parties to the contract and the surrounding circumstances.
,• implied-in-fact contract -✓✓A contract that is not express but that the parties
presumably intended, either by tacit understanding or by he assumption that it
existed.
• implied-in-law contract -✓✓An obligation that is not an actual contract but that
is imposed by law because of the parties' conduct or some special relationship
between them or because one of them would otherwise be unjustly enriched
• Voidable Contract -✓✓A contract that one of the parties can reject (avoid) based
on some circumstance surrounding its execution.
• Void Contract -✓✓An agreement that, despite the parties' intentions, never
reaches contract status and is therefore not legally enforceable or binding.
• Mutual Assent -✓✓The act of two or more parties coming together to agree to
the terms of a contract.
• fraud -✓✓An intentional misrepresentation resulting in harm to a person or an
organization.
• Representation -✓✓A statment of alleged fact
• Material fact -✓✓A fact that is significant to a decision or matter at hand.
• Rescission -✓✓A legal act of canceling something (like a contract) and making
it void
• Unilateral Mistake -✓✓A perception by one party to a contract that does not
agree with the facts.
• Bilateral Mistake -✓✓A perception by both parties to a contract that does not
agree with the facts.
• Duress -✓✓The use of restraint, violence, threats of violence, or wrongdul
pressure to compel a party to act contrary to their wishes or interests
, • Undue Influence -✓✓The improper use of power or trust to deprive a person of
free will and substitute another's objective, resulting in lack of genuine assent to a
contract.
• Uniform Commercial Code (UCC) -✓✓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 transactions throughout the United States and its territories.
• Parole evidence rule -✓✓A provision that prevents the terms of a contract from
being modified by evidence of oral or other agreements after the contract has been
written
• Statute of Frauds -✓✓A law to prevent fraud and perjury by requiring that
certain contracts be in writing and contain the signature of the party responsible for
performing that contract.
• Real property (realty) -✓✓Tangible property consisting of land, all structures
permanently attached to the land, and whatever is growing on the land.
• assignment -✓✓the transfer of contractual rights to a third party
• Assignor -✓✓the party making the assignment
• Assignee -✓✓The individual or entity to whom property, rights, or interests have
been transferred.
• third-party beneficiary contract -✓✓A contract between two parties that benefits
a third party.
• Creditor Beneficiary -✓✓a third party beneficiary owed a debt by a party to a
contract
• Donee Beneficiary -✓✓A third-party beneficiary who receives the benefit of a
contract's performance as a gift from the promisee, with the intent of the
contracting parties.
(2026/2027) | Detailed Study Guide | A+
• 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 contracting parties.
• 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 -✓✓A code of laws that govern commercial
transactions in the united states
• 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
parties.
• executory contract -✓✓A contract that has not been completely performed by
one or both of the parties.
• Express Contract -✓✓A contract whose terms and intentions are explicitly
stated.
• Implied Contract -✓✓A contract whose terms and intentions are indicated by the
actions of the parties to the contract and the surrounding circumstances.
,• implied-in-fact contract -✓✓A contract that is not express but that the parties
presumably intended, either by tacit understanding or by he assumption that it
existed.
• implied-in-law contract -✓✓An obligation that is not an actual contract but that
is imposed by law because of the parties' conduct or some special relationship
between them or because one of them would otherwise be unjustly enriched
• Voidable Contract -✓✓A contract that one of the parties can reject (avoid) based
on some circumstance surrounding its execution.
• Void Contract -✓✓An agreement that, despite the parties' intentions, never
reaches contract status and is therefore not legally enforceable or binding.
• Mutual Assent -✓✓The act of two or more parties coming together to agree to
the terms of a contract.
• fraud -✓✓An intentional misrepresentation resulting in harm to a person or an
organization.
• Representation -✓✓A statment of alleged fact
• Material fact -✓✓A fact that is significant to a decision or matter at hand.
• Rescission -✓✓A legal act of canceling something (like a contract) and making
it void
• Unilateral Mistake -✓✓A perception by one party to a contract that does not
agree with the facts.
• Bilateral Mistake -✓✓A perception by both parties to a contract that does not
agree with the facts.
• Duress -✓✓The use of restraint, violence, threats of violence, or wrongdul
pressure to compel a party to act contrary to their wishes or interests
, • Undue Influence -✓✓The improper use of power or trust to deprive a person of
free will and substitute another's objective, resulting in lack of genuine assent to a
contract.
• Uniform Commercial Code (UCC) -✓✓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 transactions throughout the United States and its territories.
• Parole evidence rule -✓✓A provision that prevents the terms of a contract from
being modified by evidence of oral or other agreements after the contract has been
written
• Statute of Frauds -✓✓A law to prevent fraud and perjury by requiring that
certain contracts be in writing and contain the signature of the party responsible for
performing that contract.
• Real property (realty) -✓✓Tangible property consisting of land, all structures
permanently attached to the land, and whatever is growing on the land.
• assignment -✓✓the transfer of contractual rights to a third party
• Assignor -✓✓the party making the assignment
• Assignee -✓✓The individual or entity to whom property, rights, or interests have
been transferred.
• third-party beneficiary contract -✓✓A contract between two parties that benefits
a third party.
• Creditor Beneficiary -✓✓a third party beneficiary owed a debt by a party to a
contract
• Donee Beneficiary -✓✓A third-party beneficiary who receives the benefit of a
contract's performance as a gift from the promisee, with the intent of the
contracting parties.
