AIC 301 EXAM PREP 2026 HIGH-YIELD
QUESTIONS AND SOLUTIONS GRADED A+
◉ Promisor. Answer: Party making a promise in a contract.
◉ Promisee. Answer: party to whom a promise is made
◉ privity of contract. Answer: The relationship that exists between the
parties to a contract.
◉ third party beneficiary. Answer: 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. Answer: The failure, without legal excuse, to
fulfill a contractual promise.
◉ Offeror. Answer: The party to a contract who promises to give
something in return for a promise or an act by another party.
◉ Offeree. Answer: The party to a contract who makes a promise or acts
in return for something offered by another party.
,◉ Uniform Commercial Code. Answer: A code of laws that govern
commercial transactions in the united states
◉ Bilateral contract. Answer: A contract in which each party promises a
performance.
◉ Unilateral Contract. Answer: A contract in which only one party
makes a promise or undertakes the requested performance.
◉ Executed contract. Answer: A contract that has been completely
performed by both parties.
◉ executory contract. Answer: A contract that has not been completely
performed by one or both of the parties.
◉ Express Contract. Answer: A contract whose terms and intentions are
explicitly stated.
◉ Implied Contract. Answer: 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. Answer: A contract that is not express but
that the parties presumably intended, either by tacit understanding or by
he assumption that it existed.
◉ implied-in-law contract. Answer: 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. Answer: A contract that one of the parties can
reject (avoid) based on some circumstance surrounding its execution.
◉ Void Contract. Answer: An agreement that, despite the parties'
intentions, never reaches contract status and is therefore not legally
enforceable or binding.
◉ Mutual Assent. Answer: The act of two or more parties coming
together to agree to the terms of a contract.
◉ fraud. Answer: An intentional misrepresentation resulting in harm to a
person or an organization.
◉ Representation. Answer: A statment of alleged fact
QUESTIONS AND SOLUTIONS GRADED A+
◉ Promisor. Answer: Party making a promise in a contract.
◉ Promisee. Answer: party to whom a promise is made
◉ privity of contract. Answer: The relationship that exists between the
parties to a contract.
◉ third party beneficiary. Answer: 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. Answer: The failure, without legal excuse, to
fulfill a contractual promise.
◉ Offeror. Answer: The party to a contract who promises to give
something in return for a promise or an act by another party.
◉ Offeree. Answer: The party to a contract who makes a promise or acts
in return for something offered by another party.
,◉ Uniform Commercial Code. Answer: A code of laws that govern
commercial transactions in the united states
◉ Bilateral contract. Answer: A contract in which each party promises a
performance.
◉ Unilateral Contract. Answer: A contract in which only one party
makes a promise or undertakes the requested performance.
◉ Executed contract. Answer: A contract that has been completely
performed by both parties.
◉ executory contract. Answer: A contract that has not been completely
performed by one or both of the parties.
◉ Express Contract. Answer: A contract whose terms and intentions are
explicitly stated.
◉ Implied Contract. Answer: 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. Answer: A contract that is not express but
that the parties presumably intended, either by tacit understanding or by
he assumption that it existed.
◉ implied-in-law contract. Answer: 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. Answer: A contract that one of the parties can
reject (avoid) based on some circumstance surrounding its execution.
◉ Void Contract. Answer: An agreement that, despite the parties'
intentions, never reaches contract status and is therefore not legally
enforceable or binding.
◉ Mutual Assent. Answer: The act of two or more parties coming
together to agree to the terms of a contract.
◉ fraud. Answer: An intentional misrepresentation resulting in harm to a
person or an organization.
◉ Representation. Answer: A statment of alleged fact
