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AIC 301 Exam Questions With All 100% Correct Answers

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AIC 301 Exam Questions With All 100% Correct Answers What are the elements of a legally binding contract? - Answer -To be legally binding, contracts must: • Contain an agreement between all parties • Involve parties with the legal capacity to contract • Contain mutual assent • In...

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  • 17 mai 2024
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  • 2023/2024
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What are the elements of a legally binding contract? - Answer -To be legally binding , contracts must: • Contain an agreement between all parties • Involve parties with the legal capacity to contract • Contain mutual assent • Involve consideration • Have a legal purpose • Be in the form prescribed by law What are the similarities an d differences between bilateral and unilateral contracts? - Answer -In bilateral contracts, each party promises to perform an act in exchange for the act of the other party. In a unilateral contract, one party promises to pay for an act of the other party. If the act isn't performed, no payment is required What are the similarities and differences between voidable and void contracts? - Answer -A voidable contract is a valid contract that can continue in force, and the parties can execute it completely unless an innocent or injured party chooses to avoid it. The behavior of one of the contracting parties, such as an act of fraud or illegal deceit, can also make a contract voidable. A void contract is an agreement that never met the necessary criteria to be considered a contract What are the two remedies avail able to the plaintiff if fraud is proved in a given case? - Answer -If fraud is proved, the plaintiff can seek one of two remedies: • Rescission —If the court rescinds the contract, the plaintiff has no further duties under it and is entitled to reimburse ment of all payments made to the defendant. The plaintiff also must return anything of value received under the contract. The court's goal is to restore the parties to the condition they were in before they entered the contract. • Sue for damages —If resc ission wouldn't make the plaintiff whole, the plaintiff can sue for damages in a tort action. The plaintiff can seek compensatory damages for quantifiable harm and punitive damages to further punish the defendant and deter future, similar fraudulent action s. The plaintiff must prove the extent of the loss to receive damages. What are two things the insurer must prove to establish that fraudulent concealment occurred? - Answer -To establish that fraudulent concealment occurred, the insurer must prove two th ings: • The insured knew that the fact concealed was material. • The insured concealed the fact with the intent to defraud. What is the difference between unilateral and bilateral mistakes in a contract? - Answer -A unilateral mistake is made by one p arty to a contract. Bilateral mistakes occur when both parties to a contract make the same mistake involving a material fact. On what grounds can a person who has reasonably relied on an innocently misrepresented material fact later avoid a contract? - Answer -A person who relies on a misrepresented material fact can later avoid a resulting contract because he or she didn't achieve mutual assent What is the purpose of the parol evidence rule? - Answer -The parol evidence rule serves three purposes: • Car ry out the parties' presumed intention. • Achieve certainty and finality as to the parties' rights and duties . • Exclude fraudulent and perjured claims How do courts resolve doubts and ambiguities in the language of a contract? - Answer -
Courts use well -accepted interpretation guidelines to resolve doubts and ambiguities in an existing contract. These guidelines are not strict legal rules, and they aren't designed to create a new contract or rewrite an old one . What's the difference between entire and divisible contracts? - Answer -Contracts can be characterized as entire or divisible. In an entire contract, one party must fulfill all terms of the contract to be entitled to the other party's specified act. In a divisible contract, one party is entitled to payment for each portion of the contract completed How do courts prioritize the types of changes that can be made to printed contract forms? - Answer -Courts prioritize any changes to printed contract forms in this order: • Handwriting prevails over p rinting. • Words prevail over numbers Why might contract rights be unassignable? - Answer -Contract rights are unassignable if: • Laws restrict prior assignment of such rights as veterans disability benefits, government pensions, wages, inheritances, and workers compensation benefits. • The parties to an agreement specify that they cannot, under the contract, assign the rights. • They are personal rights. • An assignment materially alters or varies the obligor's performance. • A judgment is pending in a personal injury case. Charlotte is an assignee in a contractual assignment. She contends that her rights should extend beyond Marvin's, the assignor, because she bears the brunt of the contractual burden. What can Charlotte learn about the validity of her argument? -

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