AIC 301 - All the terms and definitions
Exam UPDATED QUESTIONS AND
CORRECT ANSWERS
What is a contract? - CORRECT ANSWER A legally enforceable agreement between two or
more parties.
Who is the promisor? - CORRECT ANSWER The party to a contract making a promise.
Who is the promisee? - CORRECT ANSWER The party to a contract to whom a promise is
made.
What is privity of contract? - CORRECT ANSWER The relationship that exists between the
parties to a contract.
Who is a third-party beneficiary? - CORRECT 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.
What is a breach of contract? - CORRECT ANSWER The failure, without legal excuse, to
fulfill a contractual promise.
Who is the offeror? - CORRECT ANSWER The party to a contract who promises to give
something in return for a promise or an act by another party.
Who is the offeree? - CORRECT ANSWER The party to a contract who makes a promise or
acts in return for something offered by another party.
What is the Uniform Commercial Code? - CORRECT ANSWER A code of laws that govern
commercial transactions in the United States.
What is a bilateral contract? - CORRECT ANSWER A contract in which each party promises a
performance.
, What is a unilateral contract? - CORRECT ANSWER A contract in which only one party
makes a promise or undertakes the requested performance.
What is an executed contract? - CORRECT ANSWER A contract that has been completely
performed by both parties.
What is an executory contract? - CORRECT ANSWER A contract that has not been
completely performed by one or both of the parties.
What is an express contract? - CORRECT ANSWER A contract whose terms and intentions
are explicitly stated.
What is the definition of Uniform Commercial Code? - CORRECT ANSWER A model code
that provides a consistent legal basis for business transactions.
What is the definition of Parol evidence rule? - CORRECT ANSWER A provision that
prevents contract modification by oral agreements.
What is the definition of Statute of frauds? - CORRECT ANSWER A law requiring certain
contracts to be in writing.
What is the definition of Real property (realty)? - CORRECT ANSWER Tangible property
consisting of land and attached structures.
What is the definition of Assignment? - CORRECT ANSWER The transfer of rights or
property.
What is the definition of Assignor? - CORRECT ANSWER The party who makes an
assignment.
What is the definition of Assignee? - CORRECT ANSWER The individual or entity receiving
the transferred property or rights.
Exam UPDATED QUESTIONS AND
CORRECT ANSWERS
What is a contract? - CORRECT ANSWER A legally enforceable agreement between two or
more parties.
Who is the promisor? - CORRECT ANSWER The party to a contract making a promise.
Who is the promisee? - CORRECT ANSWER The party to a contract to whom a promise is
made.
What is privity of contract? - CORRECT ANSWER The relationship that exists between the
parties to a contract.
Who is a third-party beneficiary? - CORRECT 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.
What is a breach of contract? - CORRECT ANSWER The failure, without legal excuse, to
fulfill a contractual promise.
Who is the offeror? - CORRECT ANSWER The party to a contract who promises to give
something in return for a promise or an act by another party.
Who is the offeree? - CORRECT ANSWER The party to a contract who makes a promise or
acts in return for something offered by another party.
What is the Uniform Commercial Code? - CORRECT ANSWER A code of laws that govern
commercial transactions in the United States.
What is a bilateral contract? - CORRECT ANSWER A contract in which each party promises a
performance.
, What is a unilateral contract? - CORRECT ANSWER A contract in which only one party
makes a promise or undertakes the requested performance.
What is an executed contract? - CORRECT ANSWER A contract that has been completely
performed by both parties.
What is an executory contract? - CORRECT ANSWER A contract that has not been
completely performed by one or both of the parties.
What is an express contract? - CORRECT ANSWER A contract whose terms and intentions
are explicitly stated.
What is the definition of Uniform Commercial Code? - CORRECT ANSWER A model code
that provides a consistent legal basis for business transactions.
What is the definition of Parol evidence rule? - CORRECT ANSWER A provision that
prevents contract modification by oral agreements.
What is the definition of Statute of frauds? - CORRECT ANSWER A law requiring certain
contracts to be in writing.
What is the definition of Real property (realty)? - CORRECT ANSWER Tangible property
consisting of land and attached structures.
What is the definition of Assignment? - CORRECT ANSWER The transfer of rights or
property.
What is the definition of Assignor? - CORRECT ANSWER The party who makes an
assignment.
What is the definition of Assignee? - CORRECT ANSWER The individual or entity receiving
the transferred property or rights.
