AIC 301 Final Exam Resource (Verified)
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
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
