AIC 301 COMPREHENSIVE EXAMINATION
TEST FULL QUESTIONS AND CORRECT
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.
TEST FULL QUESTIONS AND CORRECT
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.
