AIC 301 EXAM: LATEST A+ QUESTIONS AND ANSWERS
BREAKDOWN
Assignment
The transfer of rights or property.
Assignor
The party to a contract who makes an assignment.
Assignee
The individual or entity to whom property, rights, or interests have been transferred.
Statute of frauds
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
The relationship that exists between the parties to a contract.
Third-party beneficiary contract
A contract between two parties that benefits a third party.
Creditor beneficiary
A third-party beneficiary owed a debt that is to be satisfied by performance of a contract.
Donee beneficiary
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
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
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
BREAKDOWN
Assignment
The transfer of rights or property.
Assignor
The party to a contract who makes an assignment.
Assignee
The individual or entity to whom property, rights, or interests have been transferred.
Statute of frauds
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
The relationship that exists between the parties to a contract.
Third-party beneficiary contract
A contract between two parties that benefits a third party.
Creditor beneficiary
A third-party beneficiary owed a debt that is to be satisfied by performance of a contract.
Donee beneficiary
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
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
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
