AIC 301 EXAM QUESTIONS AND ANSWERS LATEST
VERSION (ALREADY GRADED A+)
Injunction
A court-ordered equitable remedy requiring a party to act or refrain from acting
Undue Influence
improper influence that is asserted by one dominant person over another, without the threat of harm
Void Contract
Not legally enforceable or binding
intended beneficiary
A third party for whose benefit a contract is formed.
Contractual Consideration
Legal Meaning
Contract Novation
The substitution of one party for another in an agreement; the original party is released from all
obligations
breach of contract
A failure to perform, as promised, at the time the performance was due.
breach of contract by anticipatory repudiation
buyer no longer can afford car, says they will not buy
contra proferentum
The ambiguity is construed against the drafter.
not repudiated the contract
gave notice - inability to perform in the future
Donee Beneficiary
a third party beneficiary to whom no legal duty is owed and for whom performance is a gift
Voidable Contract
A contract that may be legally avoided (canceled, or annulled) at the option of one of the parties.
Obvious mathematical error.
, Fraudulent Alteration
An alteration with an intent to defraud
Bilateral Contract
promise for a promise
third parties
that expect to benefit under another's contract, may have enforceable rights under that contract
contract is not enforceable
if fraudulent information was knowingly provided
fraud elements are proven
complete unmaking of the contract
Specific Performance
A legal action to compel a party to carry out the terms of a contract. Damages are inappropriate or
inadequate
nonperformance
failing to fulfill or accomplish a promise, contract, or obligation according to its terms; materially
breached contract
Executed Contract
A contract that has been completely performed by both parties.
Direct action, pursuant to statute
law that permits a negligence victim to sue an insurer directly or to sue both the insurer and wrongdoer
negligence per se
An action or failure to act in violation of a statutory requirement.
result of an insurer's waiver, estoppel, or election
insurer is prevented from reviving a defense it forfeited earlier
contribute-to-loss
misrepresentation does not allow an insurer to avoid a contract if it could not contribute to the loss
agreements must be
sufficiently specific on key terms; coverage sought, obj or premises, amount of insurance, name,
duration
Estoppel
VERSION (ALREADY GRADED A+)
Injunction
A court-ordered equitable remedy requiring a party to act or refrain from acting
Undue Influence
improper influence that is asserted by one dominant person over another, without the threat of harm
Void Contract
Not legally enforceable or binding
intended beneficiary
A third party for whose benefit a contract is formed.
Contractual Consideration
Legal Meaning
Contract Novation
The substitution of one party for another in an agreement; the original party is released from all
obligations
breach of contract
A failure to perform, as promised, at the time the performance was due.
breach of contract by anticipatory repudiation
buyer no longer can afford car, says they will not buy
contra proferentum
The ambiguity is construed against the drafter.
not repudiated the contract
gave notice - inability to perform in the future
Donee Beneficiary
a third party beneficiary to whom no legal duty is owed and for whom performance is a gift
Voidable Contract
A contract that may be legally avoided (canceled, or annulled) at the option of one of the parties.
Obvious mathematical error.
, Fraudulent Alteration
An alteration with an intent to defraud
Bilateral Contract
promise for a promise
third parties
that expect to benefit under another's contract, may have enforceable rights under that contract
contract is not enforceable
if fraudulent information was knowingly provided
fraud elements are proven
complete unmaking of the contract
Specific Performance
A legal action to compel a party to carry out the terms of a contract. Damages are inappropriate or
inadequate
nonperformance
failing to fulfill or accomplish a promise, contract, or obligation according to its terms; materially
breached contract
Executed Contract
A contract that has been completely performed by both parties.
Direct action, pursuant to statute
law that permits a negligence victim to sue an insurer directly or to sue both the insurer and wrongdoer
negligence per se
An action or failure to act in violation of a statutory requirement.
result of an insurer's waiver, estoppel, or election
insurer is prevented from reviving a defense it forfeited earlier
contribute-to-loss
misrepresentation does not allow an insurer to avoid a contract if it could not contribute to the loss
agreements must be
sufficiently specific on key terms; coverage sought, obj or premises, amount of insurance, name,
duration
Estoppel
