AIC 301 Expanding Your Claims Perspective Questions Answered Correctly Latest Update
2026/2027
Contract - Answers a legally enforceable agreement between two or more parties
Promisor - Answers The party to a contract making a promise.
Promisee - Answers The party to a contract to whom a promise is made.
Privity of contract - Answers The relationship that exists between the parties to a contract
Third-party beneficiary - Answers 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 - Answers The failure, without legal excuse, to fulfill a contractual promise
Offeror - Answers The party to a contract who promises to give something in return for a
promise or an act by another party
Offeree - Answers The party to a contract who makes a promise or acts in return for something
offered by another party
Uniform Commercial Code (UCC) - Answers A code of federal laws that govern commercial
transactions in the United States
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 United States and its
territories
Bilateral contract - Answers A contract in which each party promises a performance
Unilateral contract - Answers A contract in which only one party makes a promise or undertakes
the requested performance
Executed contract - Answers A contract that has been completely performed by both parties
Executory contract - Answers A contract that has not been completely performed by one or both
of the parties
Express contract - Answers A contract whose terms and conditions are explicitly stated
Implied contract - Answers 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 - Answers 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 - Answers 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 - Answers A contract that one of the parties can reject (avoid) based on some
circumstance surrounding its execution.
Void contract - Answers An agreement that, despite the parties' intentions, never reaches
contract status and is therefore not legally enforceable or binding.
Mutual assent - Answers The act of two or more parties coming together to agree to the terms
of a contract.
Fraud - Answers An intentional misrepresentation resulting in harm to a person or organization
Representation - Answers A statement of alleged fact
Material fact - Answers A fact that is significant to a decision or matter at hand
Rescission - Answers A legal act of canceling something (like a contract) and making it void
Unilateral mistake - Answers A perception by one party to a contract that does not agree with
the facts
Bilateral mistake - Answers A perception by both parties to a contract that does not agree with
the facts.
Duress - Answers 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 - Answers The improper use of power or trust to deprive a person of free will
and substitute another's objective, resulting in lack of genuine assent to a contract
Parol evidence rule - Answers A provision that prevents the terms of a contract from being
modified by evidence of oral or other agreements after the contract has been written
Statute of frauds - Answers 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.
Real property (realty) - Answers Tangible property consisting of land, all structures permanently
attached to the land, and whatever is growing on the land.
Assignment - Answers The transfer of rights or property
Assignor - Answers The party to a contract who makes an assignment
2026/2027
Contract - Answers a legally enforceable agreement between two or more parties
Promisor - Answers The party to a contract making a promise.
Promisee - Answers The party to a contract to whom a promise is made.
Privity of contract - Answers The relationship that exists between the parties to a contract
Third-party beneficiary - Answers 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 - Answers The failure, without legal excuse, to fulfill a contractual promise
Offeror - Answers The party to a contract who promises to give something in return for a
promise or an act by another party
Offeree - Answers The party to a contract who makes a promise or acts in return for something
offered by another party
Uniform Commercial Code (UCC) - Answers A code of federal laws that govern commercial
transactions in the United States
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 United States and its
territories
Bilateral contract - Answers A contract in which each party promises a performance
Unilateral contract - Answers A contract in which only one party makes a promise or undertakes
the requested performance
Executed contract - Answers A contract that has been completely performed by both parties
Executory contract - Answers A contract that has not been completely performed by one or both
of the parties
Express contract - Answers A contract whose terms and conditions are explicitly stated
Implied contract - Answers 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 - Answers 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 - Answers 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 - Answers A contract that one of the parties can reject (avoid) based on some
circumstance surrounding its execution.
Void contract - Answers An agreement that, despite the parties' intentions, never reaches
contract status and is therefore not legally enforceable or binding.
Mutual assent - Answers The act of two or more parties coming together to agree to the terms
of a contract.
Fraud - Answers An intentional misrepresentation resulting in harm to a person or organization
Representation - Answers A statement of alleged fact
Material fact - Answers A fact that is significant to a decision or matter at hand
Rescission - Answers A legal act of canceling something (like a contract) and making it void
Unilateral mistake - Answers A perception by one party to a contract that does not agree with
the facts
Bilateral mistake - Answers A perception by both parties to a contract that does not agree with
the facts.
Duress - Answers 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 - Answers The improper use of power or trust to deprive a person of free will
and substitute another's objective, resulting in lack of genuine assent to a contract
Parol evidence rule - Answers A provision that prevents the terms of a contract from being
modified by evidence of oral or other agreements after the contract has been written
Statute of frauds - Answers 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.
Real property (realty) - Answers Tangible property consisting of land, all structures permanently
attached to the land, and whatever is growing on the land.
Assignment - Answers The transfer of rights or property
Assignor - Answers The party to a contract who makes an assignment
