AIC 301 EXAM QUESTIONS AND ANSWERS LATEST
VERSION (ALREADY GRADED A+)
A legally enforceable agreement between two or more parties.
contract
The party to a contract making a promise.
Promisor
The party to a contract to whom a promise is made.
Promisee
The relationship that exists between the parties to a contract.
Privity of contract
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.
Third-party beneficiary
The failure, without legal excuse, to fulfill a contractual promise.
Breach of contract
The party to a contract who promises to give something in return for a promise or an act by another
party.
Offeror
The party to a contract who makes a promise or acts in return for something offered by another party.
Offeree
A code of federal laws that govern commercial transactions in the United States.
Uniform Commercial Code
A contract in which each party promises a performance.
Bilateral contract
A contract in which only one party makes a promise or undertakes the requested performance.
Unilateral contract
A contract that has been completely performed by both parties.
Executed contract
, A contract that has not been completely performed by one or both of the parties.
Executory contract
A contract whose terms and intentions are explicitly stated.
Express contract
A contract whose terms and intentions are indicated by the actions of the parties to the contract and
the surrounding circumstances.
Implied contract
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-fact 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.
Implied-in-law contract
A contract that one of the parties can reject (avoid) based on some circumstance surrounding its
execution.
Voidable contract
An agreement that, despite the parties' intentions, never reaches contract status and is therefore not
legally enforceable or binding.
Void contract
What are the elements of a legally binding contract?
Agreement
capacity
mutual assent
consideration
legal purpose
and the form required by law
The act of two or more parties coming together to agree to the terms of a contract.
Mutual assent
An intentional misrepresentation resulting in harm to a person or an organization.
Fraud
A statement of alleged fact.
Representation
VERSION (ALREADY GRADED A+)
A legally enforceable agreement between two or more parties.
contract
The party to a contract making a promise.
Promisor
The party to a contract to whom a promise is made.
Promisee
The relationship that exists between the parties to a contract.
Privity of contract
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.
Third-party beneficiary
The failure, without legal excuse, to fulfill a contractual promise.
Breach of contract
The party to a contract who promises to give something in return for a promise or an act by another
party.
Offeror
The party to a contract who makes a promise or acts in return for something offered by another party.
Offeree
A code of federal laws that govern commercial transactions in the United States.
Uniform Commercial Code
A contract in which each party promises a performance.
Bilateral contract
A contract in which only one party makes a promise or undertakes the requested performance.
Unilateral contract
A contract that has been completely performed by both parties.
Executed contract
, A contract that has not been completely performed by one or both of the parties.
Executory contract
A contract whose terms and intentions are explicitly stated.
Express contract
A contract whose terms and intentions are indicated by the actions of the parties to the contract and
the surrounding circumstances.
Implied contract
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-fact 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.
Implied-in-law contract
A contract that one of the parties can reject (avoid) based on some circumstance surrounding its
execution.
Voidable contract
An agreement that, despite the parties' intentions, never reaches contract status and is therefore not
legally enforceable or binding.
Void contract
What are the elements of a legally binding contract?
Agreement
capacity
mutual assent
consideration
legal purpose
and the form required by law
The act of two or more parties coming together to agree to the terms of a contract.
Mutual assent
An intentional misrepresentation resulting in harm to a person or an organization.
Fraud
A statement of alleged fact.
Representation
