©EVERLY 2025 ALL RIGHTS RESERVED
AIC 301 Exam Questions And Answers
Latest Updated 2025 |100% Verified.
What is a contract? - Answer✔A legally enforceable agreement.
Are all agreements legally binding contracts? - Answer✔No, not all agreements are legally
binding contracts.
What is a promisor? - Answer✔The party making a promise in a contract.
What is a promisee? - Answer✔The party to whom a promise is made in a contract.
What is privity of contract? - Answer✔The relationship that exists between the parties of a
contract.
What are the elements required for a legally enforceable contract? - Answer✔Agreement,
capacity, mutual assent, consideration, legal purpose, and proper form.
What does the agreement in a contract include? - Answer✔The offer and acceptance.
What is an offer in a contract? - Answer✔Language that clearly establishes a desire to create a
binding contract.
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, ©EVERLY 2025 ALL RIGHTS RESERVED
What is acceptance in a contract? - Answer✔The offeree agreeing to the offer unconditionally
and unequivocally.
Who must have capacity in a contract? - Answer✔All parties must be mentally competent or
able to understand the nature and consequences of the agreement.
Who does not meet the capacity requirement in a contract? - Answer✔Minors, insane or
intoxicated individuals, and artificial entities.
What is mutual assent in a contract? - Answer✔The deliberate negotiation of all terms by two
or more parties to achieve consensus.
What is consideration in a contract? - Answer✔Something of value given in return for a
promise, such as money or a promise to perform or refrain from an act.
What is the requirement of legal purpose in a contract? - Answer✔The contract must not run
counter to the law.
What forms can a contract be in to be legally binding? - Answer✔Either written or oral, as long
as it is in a proper, legally stipulated form.
What types of contracts are required to be in writing? - Answer✔Sale of real estate,
agreements where performance exceeds 1 year, transactions worth more than $500 or
involving personal property, agreements to pay a debt owed by another person, agreements
where an executor of an estate promises to pay estate debts from personal funds.
What is a bilateral contract? - Answer✔A contract in which each party promises a performance.
What is a unilateral contract? - Answer✔A contract in which one party promises a performance
or undertakes the requested performance.
What is an executed contract? - Answer✔A contract that has been completed by both parties.
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AIC 301 Exam Questions And Answers
Latest Updated 2025 |100% Verified.
What is a contract? - Answer✔A legally enforceable agreement.
Are all agreements legally binding contracts? - Answer✔No, not all agreements are legally
binding contracts.
What is a promisor? - Answer✔The party making a promise in a contract.
What is a promisee? - Answer✔The party to whom a promise is made in a contract.
What is privity of contract? - Answer✔The relationship that exists between the parties of a
contract.
What are the elements required for a legally enforceable contract? - Answer✔Agreement,
capacity, mutual assent, consideration, legal purpose, and proper form.
What does the agreement in a contract include? - Answer✔The offer and acceptance.
What is an offer in a contract? - Answer✔Language that clearly establishes a desire to create a
binding contract.
1
, ©EVERLY 2025 ALL RIGHTS RESERVED
What is acceptance in a contract? - Answer✔The offeree agreeing to the offer unconditionally
and unequivocally.
Who must have capacity in a contract? - Answer✔All parties must be mentally competent or
able to understand the nature and consequences of the agreement.
Who does not meet the capacity requirement in a contract? - Answer✔Minors, insane or
intoxicated individuals, and artificial entities.
What is mutual assent in a contract? - Answer✔The deliberate negotiation of all terms by two
or more parties to achieve consensus.
What is consideration in a contract? - Answer✔Something of value given in return for a
promise, such as money or a promise to perform or refrain from an act.
What is the requirement of legal purpose in a contract? - Answer✔The contract must not run
counter to the law.
What forms can a contract be in to be legally binding? - Answer✔Either written or oral, as long
as it is in a proper, legally stipulated form.
What types of contracts are required to be in writing? - Answer✔Sale of real estate,
agreements where performance exceeds 1 year, transactions worth more than $500 or
involving personal property, agreements to pay a debt owed by another person, agreements
where an executor of an estate promises to pay estate debts from personal funds.
What is a bilateral contract? - Answer✔A contract in which each party promises a performance.
What is a unilateral contract? - Answer✔A contract in which one party promises a performance
or undertakes the requested performance.
What is an executed contract? - Answer✔A contract that has been completed by both parties.
2
