AIC 301 EXAM 2026 ACTUAL EXAM PAPER
QUESTIONS WITH ANSWERS GRADED A+
◉ Promisor. Answer: The party to a contract making a promise.
◉ Promisee. Answer: The party to a contract 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 (UCC). Answer: 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. 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 conditions 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
the 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 organization
, ◉ Representation. Answer: A statement of alleged fact
◉ Material fact. Answer: A fact that is significant to a decision or matter
at hand
◉ Rescission. Answer: A legal act of canceling something (like a
contract) and making it void
◉ Unilateral mistake. Answer: A perception by one party to a contract
that does not agree with the facts
◉ Bilateral mistake. Answer: A perception by both parties to a contract
that does not agree with the facts.
◉ Duress. Answer: 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. Answer: 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
QUESTIONS WITH ANSWERS GRADED A+
◉ Promisor. Answer: The party to a contract making a promise.
◉ Promisee. Answer: The party to a contract 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 (UCC). Answer: 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. 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 conditions 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
the 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 organization
, ◉ Representation. Answer: A statement of alleged fact
◉ Material fact. Answer: A fact that is significant to a decision or matter
at hand
◉ Rescission. Answer: A legal act of canceling something (like a
contract) and making it void
◉ Unilateral mistake. Answer: A perception by one party to a contract
that does not agree with the facts
◉ Bilateral mistake. Answer: A perception by both parties to a contract
that does not agree with the facts.
◉ Duress. Answer: 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. Answer: 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
