AIC 301 Exam Questions and Answers
(2026/2027) | Complete Study Guide |
Verified Solutions | A+
• Contract -✓✓a legally enforceable agreement between two or more parties
• Promisor -✓✓The 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 beneficiary -✓✓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 -✓✓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 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 -✓✓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 conditions 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
existed
• 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 enforceable or binding.
• 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
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 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 -✓✓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 -✓✓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) -✓✓Tangible property consisting of land, all structures
permanently attached to the land, and whatever is growing on the land.
• Assignment -✓✓The transfer of rights or property
• Assignor -✓✓The party to a contract who makes an assignment
• Assignee -✓✓The individual or entity to whom property, rights, or interests have
been transferred.
• Third-party beneficiary contract -✓✓A contract between two parties that benefits
a third party.
(2026/2027) | Complete Study Guide |
Verified Solutions | A+
• Contract -✓✓a legally enforceable agreement between two or more parties
• Promisor -✓✓The 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 beneficiary -✓✓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 -✓✓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 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 -✓✓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 conditions 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
existed
• 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 enforceable or binding.
• 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
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 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 -✓✓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 -✓✓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) -✓✓Tangible property consisting of land, all structures
permanently attached to the land, and whatever is growing on the land.
• Assignment -✓✓The transfer of rights or property
• Assignor -✓✓The party to a contract who makes an assignment
• Assignee -✓✓The individual or entity to whom property, rights, or interests have
been transferred.
• Third-party beneficiary contract -✓✓A contract between two parties that benefits
a third party.
