AIC 301 Exam Questions With Verified
Answers(Updated)
Assignment - Answer-The transfer of rights or property.
/.Assignor - Answer-The party to a contract who makes an assignment.
/.Assignee - Answer-The individual or entity to whom property, rights, or interests have
been transferred.
/.Statute of frauds - Answer-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.
/.Privity of contract - Answer-The relationship that exists between the parties to a
contract.
/.Third-party beneficiary contract - Answer-A contract between two parties that benefits
a third party.
/.Creditor beneficiary - Answer-A third-party beneficiary owed a debt that is to be
satisfied by performance of a contract.
/.Donee beneficiary - Answer-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.
/.Incidental beneficiary - Answer-A third-party beneficiary who has no contractual rights
but benefits from a contract even though that is not the intent of the parties to the
contract.
/.Contract - Answer-A legally enforceable agreement between two or more parties.
/.Promisor - Answer-The party to a contract making a promise.
/.Promisee - Answer-The party to a contract to whom a promise is made.
/.Privity of contract - Answer-The relationship that exists between the parties to a
contract.
, /.Third-party beneficiary - Answer-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 - Answer-The failure, without legal excuse, to fulfill a contractual
promise.
/.Offeror - Answer-The party to a contract who promises to give something in return for
a promise or an act by another party.
/.Offeree - Answer-The party to a contract who makes a promise or acts in return for
something offered by another party.
/.Uniform Commercial Code - Answer-A code of federal laws that govern commercial
transactions in the United States.
/.Bilateral contract - Answer-A contract in which each party promises a performance.
/.Unilateral contract - Answer-A contract in which only one party makes a promise or
undertakes the requested performance.
/.Executed contract - Answer-A contract that has been completely performed by both
parties.
/.Executory contract - Answer-A contract that has not been completely performed by
one or both of the parties.
/.Express contract - Answer-A contract whose terms and intentions are explicitly stated.
/.Implied contract - Answer-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 - Answer-A contract that is not express but that the parties
presumably intended, either by tacit understanding or by the assumption that it existed.
/.Implied-in-law contract - Answer-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 - Answer-A contract that one of the parties can reject (avoid) based
on some circumstance surrounding its execution.
/.Void contract - Answer-An agreement that, despite the parties' intentions, never
reaches contract status and is therefore not legally enforceable or binding.
/.Contract - Answer-A legally enforceable agreement between two or more parties.
Answers(Updated)
Assignment - Answer-The transfer of rights or property.
/.Assignor - Answer-The party to a contract who makes an assignment.
/.Assignee - Answer-The individual or entity to whom property, rights, or interests have
been transferred.
/.Statute of frauds - Answer-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.
/.Privity of contract - Answer-The relationship that exists between the parties to a
contract.
/.Third-party beneficiary contract - Answer-A contract between two parties that benefits
a third party.
/.Creditor beneficiary - Answer-A third-party beneficiary owed a debt that is to be
satisfied by performance of a contract.
/.Donee beneficiary - Answer-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.
/.Incidental beneficiary - Answer-A third-party beneficiary who has no contractual rights
but benefits from a contract even though that is not the intent of the parties to the
contract.
/.Contract - Answer-A legally enforceable agreement between two or more parties.
/.Promisor - Answer-The party to a contract making a promise.
/.Promisee - Answer-The party to a contract to whom a promise is made.
/.Privity of contract - Answer-The relationship that exists between the parties to a
contract.
, /.Third-party beneficiary - Answer-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 - Answer-The failure, without legal excuse, to fulfill a contractual
promise.
/.Offeror - Answer-The party to a contract who promises to give something in return for
a promise or an act by another party.
/.Offeree - Answer-The party to a contract who makes a promise or acts in return for
something offered by another party.
/.Uniform Commercial Code - Answer-A code of federal laws that govern commercial
transactions in the United States.
/.Bilateral contract - Answer-A contract in which each party promises a performance.
/.Unilateral contract - Answer-A contract in which only one party makes a promise or
undertakes the requested performance.
/.Executed contract - Answer-A contract that has been completely performed by both
parties.
/.Executory contract - Answer-A contract that has not been completely performed by
one or both of the parties.
/.Express contract - Answer-A contract whose terms and intentions are explicitly stated.
/.Implied contract - Answer-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 - Answer-A contract that is not express but that the parties
presumably intended, either by tacit understanding or by the assumption that it existed.
/.Implied-in-law contract - Answer-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 - Answer-A contract that one of the parties can reject (avoid) based
on some circumstance surrounding its execution.
/.Void contract - Answer-An agreement that, despite the parties' intentions, never
reaches contract status and is therefore not legally enforceable or binding.
/.Contract - Answer-A legally enforceable agreement between two or more parties.
