AIC 301 Study Guide Exam Questions AIC 301 Study Guide Exam Questions And Answers.AIC 301 Study Guide Exam Questions And Answers.AIC 301 Study Guide Exam Questions And Answers.AIC 301 Study Guide Exam Questions And Answers.301 Study Guide Exam Questions And Answers.AIC 301 Study Guide Exam Question...
contract - (correct answer) -a legally enforceable agreement
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between 2 or more parties
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agreements - (correct answer) -not all __________________ are legally
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binding contracts
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1) agreement
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2) capacity
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3) mutual assent
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4) consideration
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5) legal purpose
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6) form required by law - (correct answer) -6 elements of a legally
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binding contract
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promisor - (correct answer) -party making a promise
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promisee - (correct answer) -party to whom a promise is made
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privity of contract - (correct answer) -the relationship that exists
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between 2 parties to a contract
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privity - (correct answer) -a party cannot sue for breach of
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contract without being in ______________ of contract with the other
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party
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third-party beneficiary - (correct answer) -a person who is not a
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party to a contract but who benefits from it and has a legal right to
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enforce the contract if it is breached by either of the contracting
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parties
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,breach of contract - (correct answer) -the failure without legal
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excuse, to fulfill a contractual promise
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agreement - (correct answer) -must include an offer and its hi hi hi hi hi hi hi hi hi
acceptance
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offeror - (correct answer) -party making the offer
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offeree - (correct answer) -party who makes a promise or acts in
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return for something offered by another party
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definite - (correct answer) -offers must include _____________ terms
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and be communicated to and received by the offeree
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counteroffer - (correct answer) -if the offeree requests changes to hi hi hi hi hi hi hi hi hi
conditions of the offer
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mentally competent - (correct answer) -all parties must be
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______________ _________________ for a contract to be legally binding
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mutual assent - (correct answer) -the act of 2 or more parties
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deliberately negotiating all terms to achieve consensus
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consideration - (correct answer) -something of value that is given hi hi hi hi hi hi hi hi hi
in return for a promise
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legal purpose - (correct answer) -a contract must serve a legal
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purpose to be legally enforceable
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form required by law - (correct answer) -contracts must be in a
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proper, legally stipulated form to be binding
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1) sale of real estate
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2) agreements that can't be performed within 1 year
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3) transactions > $500
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4) agreements to pay a debt owed - (correct answer) -4 examples
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2
,hi of contracts that have to be in writing
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bilateral contract - (correct answer) -a contract where each party
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promises to perform an act in exchange for an act by the other
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party
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unilateral contract - (correct answer) -a contract where one party
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promises to pay for the act of the other party
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executed contract - (correct answer) -contract where nothing
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more is required of either party to be fulfilled
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executory contract - (correct answer) -a contract that hasn't been
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fully executed
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express contract - (correct answer) -contract where terms and
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intentions are clearly stated
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implied contract - (correct answer) -contract where terms and
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intentions are indicated by the actions of the parties to the
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contract and the surrounding circumstances
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implied-in-fact contracts - (correct answer) -parties presumably hi hi hi hi hi hi
intended, either by tacit understanding or by the assumption that
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it already existed
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implied-in-law contracts - (correct answer) -an obligation that is hi hi hi hi hi hi hi hi
not an actual contract but that is imposed by law because of the
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parties' conduct or some special relationship between them or
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because one of them would otherwise be unjustly enriched
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implied-in-law contracts - (correct answer) -sometimes called hi hi hi hi hi hi
"quasi-contracts"
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voidable contract - (correct answer) -a contract that one of the
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parties can reject (avoid) based on some circumstances regarding
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its execution
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, behavior - (correct answer) -the _______________ of one of the hi hi hi hi hi hi hi hi hi
contracting parties can make a contract voidable
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void contract - (correct answer) -an agreement that despite that
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parties' intentions, never reaches contract status and is therefore
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not legally enforceable or binding
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void contact - (correct answer) -ex. agreement to commit a crime
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(what type of contract?)
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1) fraud hi
2) mistake hi
3) duress hi
4) undue influence hi hi
5) innocent misrepresentation - (correct answer) -5 factors lacking
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for mutual assent
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fraud - (correct answer) -an intentional misrepresentation
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resulting in harm to a person or an organization
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1) rescission hi
2) sue for damages - (correct answer) -2 remedies that can be
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sought if fraud is proven
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rescission - (correct answer) -a legal act of cancelling something hi hi hi hi hi hi hi hi hi
and making it void
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sue for damages - (correct answer) -action taken if rescission can't
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make the plaintiff whole
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1) insured knew the fact concealed was material
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2) insured concealed the fact with the intent to defraud - (correct
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answer) -2 things insurers need to prove to establish fraudulent
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concealment
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unilateral; bilateral - (correct answer) -mistakes can be hi hi hi hi hi hi hi
4
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