QUESTION 85
A procurement professional is drafting payment terms for a commercial contract. He is considering about payment method if defective products are found. Which of the following should be embedded in payment terms to control this issue?

QUESTION 86
Which of the following is the international standard for labelling hazardous substances?

QUESTION 87
Which of the following can be considered as implied terms in a contract?
1. Case law
2. Statute
3. Trade custom
4. A term can never be implied, it must always be expressed by the parties

QUESTION 88
In common law, which of the following documents is legally binding without the need for consideration?

QUESTION 89
Which of the following are implied terms in sales contracts? Select THREE that apply.

QUESTION 90
CMS Corp goes into a gainshare agreement with the contractor, EIP Ltd. Both parties agree that the final fee will be calculated on target cost – target fee basis. Which of the following will affect the final fee payable in this gainshare agreement? Select TWO that apply:

QUESTION 91
Which of the following regulates barriers to the provision of services between countries?

QUESTION 92
A purchase order can become a contract between supplier and purchaser if it is…?

QUESTION 93
Standard terms and conditions should become the governing terms for which group of items?

QUESTION 94
Which of the following documents are likely to have legal standing? Select TWO that apply:

QUESTION 95
In which of the following section of a specification, requirements for training to use the equipment will be set out?

QUESTION 96
Which of the following is most likely to be an one-off contract?

QUESTION 97
Which of the following is always automatically considered as a contract?

QUESTION 98
Cleveland Insurance (Cleveland) offers a range of insurance services. The main software used in the call centre is a customer relationship management (CRM) system. Cleveland perceived an urgent need to replace the existing CRM system to deal with the increasing number of customers and services.
Urgent Digital Ltd (Digital) is one of the bidders of Cleveland’s ITT for designing, building and managing the new CRM system. Its bid team is led by Hank Irvine, its technical director. Hank realises that winning the Cleveland contract (valued at approximately £50M) will enhance his career. During discussions with Cleveland, Hank offers certain assurances regarding timescales for the project. He has not carried out any investigations into the viability of the timescales. Hank has little idea whether the timescales can be met.
Cleveland decides that Digital’s bid meets with its requirements, especially given the assurances in timescale offered by Hank, and decides to proceed with it, subject to a formal contract. Eventually, a formal contract is signed by both parties. The initial assurances given by Hank about the timing of the project are never going to be achieved and are at best grossly exaggerated.
Cleveland brought the case to the court and sought rescission of contract with Digital. Is Cleveland’s claim appropriate in this case?

QUESTION 99
Which of the following are likely to be express terms in a contract?
1. Legislation
2. Custom and practice
3. Contract particulars
4. Terms and conditions

QUESTION 100
A retailer prefers to display its best selling products and promotion programme on the building windows. According to rule of contract formation, this act will generally constitute…?

QUESTION 101
Which of the following are true statements about RFQ process? Select TWO that apply.

QUESTION 102
Which of the following statement is true about one-off contract?

QUESTION 103
Consequences and actions that arise from certain KPI scores must be…? Select TWO that apply.

QUESTION 104
Which of the following encourages social and environmental criteria in public sector contracting in the UK?

QUESTION 105
GPP, the employer, and Prosolia UK, the contractor, entered into five EPC contracts for the development of five different solar power generation plants in the United Kingdom. Four out of the five developments failed to be commissioned by the relevant due dates, with the delays ranging from 44 to 285 days.
Among other claims, GPP, acting through its two investment vehicles, claimed liquidated damages of £500 per day in all four contracts for Prosolia UK’s failure to achieve completion of the plants by the due date. The liquidated damages claimed amounted to £1,804,221 across the four delayed contracts.
Prosolia, alongside various other defences, raised the defence that the liquidated damages provision in each contract was a penalty, and therefore unenforceable against it. Is Prosolia contractually obliged to make the payment to the plaintiff?

QUESTION 106
Which of the following are the conditions for revocation of offer to be valid?
1. The offeree has not received the offer yet
2. Revocation of offer must be communicated with the offeree
3. Revocation of offer must be sent via email
4. Offeree has not accepted the offer yet