AIC 301 PRACTICE SOLUTION STUDY SHEET
QUESTIONS AND DETAILED ANSWERS
●● 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 laws that govern commercial transactions in the
United States
●● 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 intentions 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 an 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.
QUESTIONS AND DETAILED ANSWERS
●● 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 laws that govern commercial transactions in the
United States
●● 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 intentions 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 an 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.
