AIC 301 EXAM: LATEST A+ QUESTIONS AND ANSWERS
BREAKDOWN
Contract
A legally enforceable agreement between two or more parties.
Promisor
The party to a contract making a promise.
Promisee
The party to a contract to whom a promise is made.
Privity of contract
The relationship that exists between the parties to a contract.
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 federal 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 the 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 statement 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.
BREAKDOWN
Contract
A legally enforceable agreement between two or more parties.
Promisor
The party to a contract making a promise.
Promisee
The party to a contract to whom a promise is made.
Privity of contract
The relationship that exists between the parties to a contract.
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 federal 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 the 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 statement 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.
