AIC 301 – End Term Exam – A+ Graded
contract - ✔✔a legally enforceable agreement between two or more parties
promisor - ✔✔e 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 beneificiary - ✔✔a person who is not a party to a contract, but who benefits from it and has
a legal right to enforce it 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 (UCC) - ✔✔a code of federal laws that govern commercial transactions in the
U.S.
OR;
a model code that has been adopted in whole or in part by each state, and whose purpose is to provide
a consistent legal basis for business transactions throughout the U.S. and its territories
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 iexisted
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 binding or enforceable
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
bilateral mistake - ✔✔a perception by both parties to a contract that does not agree with the facts
duress - ✔✔the use of restraint, violence, threats of violence, or wrongful pressure to compel a party to
act contrary to his or her wishes or interests
undue influence - ✔✔the improper use of power to deprive a person of free will and substitute
another's objective, resulting in a lack of genuine assent to a contract
parol evidence rule - ✔✔a provision that prevents the terms of a contract from being modified by
evidence or oral or other agreements after the contract has been written
parol evidence - ✔✔evidence of prior negotiations or agreements that led to a contract; can be written
or oral
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 the contract
real property - ✔✔tangible property consisting of land, all structures permanently attached to the land,
and whatever is growing on the land
assignment - ✔✔the transfer of rights or property
contract - ✔✔a legally enforceable agreement between two or more parties
promisor - ✔✔e 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 beneificiary - ✔✔a person who is not a party to a contract, but who benefits from it and has
a legal right to enforce it 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 (UCC) - ✔✔a code of federal laws that govern commercial transactions in the
U.S.
OR;
a model code that has been adopted in whole or in part by each state, and whose purpose is to provide
a consistent legal basis for business transactions throughout the U.S. and its territories
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 iexisted
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 binding or enforceable
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
bilateral mistake - ✔✔a perception by both parties to a contract that does not agree with the facts
duress - ✔✔the use of restraint, violence, threats of violence, or wrongful pressure to compel a party to
act contrary to his or her wishes or interests
undue influence - ✔✔the improper use of power to deprive a person of free will and substitute
another's objective, resulting in a lack of genuine assent to a contract
parol evidence rule - ✔✔a provision that prevents the terms of a contract from being modified by
evidence or oral or other agreements after the contract has been written
parol evidence - ✔✔evidence of prior negotiations or agreements that led to a contract; can be written
or oral
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 the contract
real property - ✔✔tangible property consisting of land, all structures permanently attached to the land,
and whatever is growing on the land
assignment - ✔✔the transfer of rights or property
