AIC 301 EXAM QUESTIONS AND ANSWERS LATEST
VERSION (ALREADY GRADED A+)
contract
a legally enforceable agreement between 2 or more parties
agreements
not all __________________ are legally binding contracts
1) agreement
2) capacity
3) mutual assent
4) consideration
5) legal purpose
6) form required by law
6 elements of a legally binding contract
promisor
party making a promise
promisee
party to whom a promise is made
privity of contract
the relationship that exists between 2 parties to a contract
privity
a party cannot sue for breach of contract without being in ______________ of contract with the other
party
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
agreement
must include an offer and its acceptance
offeror
, party making the offer
offeree
party who makes a promise or acts in return for something offered by another party
definite
offers must include _____________ terms and be communicated to and received by the offeree
counteroffer
if the offeree requests changes to conditions of the offer
mentally competent
all parties must be ______________ _________________ for a contract to be legally binding
mutual assent
the act of 2 or more parties deliberately negotiating all terms to achieve consensus
consideration
something of value that is given in return for a promise
legal purpose
a contract must serve a legal purpose to be legally enforceable
form required by law
contracts must be in a proper, legally stipulated form to be binding
1) sale of real estate
2) agreements that can't be performed within 1 year
3) transactions > $500
4) agreements to pay a debt owed
4 examples of contracts that have to be in writing
bilateral contract
a contract where each party promises to perform an act in exchange for an act by the other party
unilateral contract
a contract where one party promises to pay for the act of the other party
executed contract
contract where nothing more is required of either party to be fulfilled
executory contract
a contract that hasn't been fully executed
VERSION (ALREADY GRADED A+)
contract
a legally enforceable agreement between 2 or more parties
agreements
not all __________________ are legally binding contracts
1) agreement
2) capacity
3) mutual assent
4) consideration
5) legal purpose
6) form required by law
6 elements of a legally binding contract
promisor
party making a promise
promisee
party to whom a promise is made
privity of contract
the relationship that exists between 2 parties to a contract
privity
a party cannot sue for breach of contract without being in ______________ of contract with the other
party
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
agreement
must include an offer and its acceptance
offeror
, party making the offer
offeree
party who makes a promise or acts in return for something offered by another party
definite
offers must include _____________ terms and be communicated to and received by the offeree
counteroffer
if the offeree requests changes to conditions of the offer
mentally competent
all parties must be ______________ _________________ for a contract to be legally binding
mutual assent
the act of 2 or more parties deliberately negotiating all terms to achieve consensus
consideration
something of value that is given in return for a promise
legal purpose
a contract must serve a legal purpose to be legally enforceable
form required by law
contracts must be in a proper, legally stipulated form to be binding
1) sale of real estate
2) agreements that can't be performed within 1 year
3) transactions > $500
4) agreements to pay a debt owed
4 examples of contracts that have to be in writing
bilateral contract
a contract where each party promises to perform an act in exchange for an act by the other party
unilateral contract
a contract where one party promises to pay for the act of the other party
executed contract
contract where nothing more is required of either party to be fulfilled
executory contract
a contract that hasn't been fully executed
