AIC 301 COMPREHENSIVE TEST 2027
QUESTIONS WITH ANSWERS GRADED A+
◉ agreements. Answer: not all __________________ are legally binding
contracts
◉ 1) agreement
2) capacity
3) mutual assent
4) consideration
5) legal purpose
6) form required by law. Answer: 6 elements of a legally binding
contract
◉ promisor. Answer: party making a promise
◉ promisee. Answer: party to whom a promise is made
◉ privity of contract. Answer: the relationship that exists between 2
parties to a contract
,◉ privity. Answer: a party cannot sue for breach of contract without
being in ______________ of contract with the other party
◉ 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
◉ agreement. Answer: must include an offer and its acceptance
◉ offeror. Answer: party making the offer
◉ offeree. Answer: party who makes a promise or acts in return for
something offered by another party
◉ definite. Answer: offers must include _____________ terms and be
communicated to and received by the offeree
◉ counteroffer. Answer: if the offeree requests changes to conditions of
the offer
,◉ mentally competent. Answer: all parties must be ______________
_________________ for a contract to be legally binding
◉ mutual assent. Answer: the act of 2 or more parties deliberately
negotiating all terms to achieve consensus
◉ consideration. Answer: something of value that is given in return for a
promise
◉ legal purpose. Answer: a contract must serve a legal purpose to be
legally enforceable
◉ form required by law. Answer: contracts must be in a proper, legally
stipulated form to be binding
◉ 1) sale of real estate
2) agreements that can't be performed within 1 year
3) transactions > $500
4) agreements to pay a debt owed. Answer: 4 examples of contracts that
have to be in writing
◉ bilateral contract. Answer: a contract where each party promises to
perform an act in exchange for an act by the other party
, ◉ unilateral contract. Answer: a contract where one party promises to
pay for the act of the other party
◉ executed contract. Answer: contract where nothing more is required
of either party to be fulfilled
◉ executory contract. Answer: a contract that hasn't been fully executed
◉ express contract. Answer: contract where terms and intentions are
clearly stated
◉ implied contract. Answer: contract where terms and intentions are
indicated by the actions of the parties to the contract and the surrounding
circumstances
◉ implied-in-fact contracts. Answer: parties presumably intended, either
by tacit understanding or by the assumption that it already existed
◉ implied-in-law contracts. 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
◉ implied-in-law contracts. Answer: sometimes called "quasi-contracts"
QUESTIONS WITH ANSWERS GRADED A+
◉ agreements. Answer: not all __________________ are legally binding
contracts
◉ 1) agreement
2) capacity
3) mutual assent
4) consideration
5) legal purpose
6) form required by law. Answer: 6 elements of a legally binding
contract
◉ promisor. Answer: party making a promise
◉ promisee. Answer: party to whom a promise is made
◉ privity of contract. Answer: the relationship that exists between 2
parties to a contract
,◉ privity. Answer: a party cannot sue for breach of contract without
being in ______________ of contract with the other party
◉ 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
◉ agreement. Answer: must include an offer and its acceptance
◉ offeror. Answer: party making the offer
◉ offeree. Answer: party who makes a promise or acts in return for
something offered by another party
◉ definite. Answer: offers must include _____________ terms and be
communicated to and received by the offeree
◉ counteroffer. Answer: if the offeree requests changes to conditions of
the offer
,◉ mentally competent. Answer: all parties must be ______________
_________________ for a contract to be legally binding
◉ mutual assent. Answer: the act of 2 or more parties deliberately
negotiating all terms to achieve consensus
◉ consideration. Answer: something of value that is given in return for a
promise
◉ legal purpose. Answer: a contract must serve a legal purpose to be
legally enforceable
◉ form required by law. Answer: contracts must be in a proper, legally
stipulated form to be binding
◉ 1) sale of real estate
2) agreements that can't be performed within 1 year
3) transactions > $500
4) agreements to pay a debt owed. Answer: 4 examples of contracts that
have to be in writing
◉ bilateral contract. Answer: a contract where each party promises to
perform an act in exchange for an act by the other party
, ◉ unilateral contract. Answer: a contract where one party promises to
pay for the act of the other party
◉ executed contract. Answer: contract where nothing more is required
of either party to be fulfilled
◉ executory contract. Answer: a contract that hasn't been fully executed
◉ express contract. Answer: contract where terms and intentions are
clearly stated
◉ implied contract. Answer: contract where terms and intentions are
indicated by the actions of the parties to the contract and the surrounding
circumstances
◉ implied-in-fact contracts. Answer: parties presumably intended, either
by tacit understanding or by the assumption that it already existed
◉ implied-in-law contracts. 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
◉ implied-in-law contracts. Answer: sometimes called "quasi-contracts"
