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L5M3 Managing Contractual Risk Paper *1.
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1.
An invitation to treat should not be treated as an offer. Is this statement correct?
2.
Samson has made an offer to James to sell his 5-year old vehicle for an amount of $40 000. James is intending to accept the offer made to him but wants to ask for more information about the product before accepting. However, he is worried that Samson may see him as challenging the offer and might terminate it. Does James have a valid reason to be worried?
3.
Which of the following are correct examples of an invitation to treat?
- Asking one party to pay a certain amount for an enhanced product
- Displaying goods with price tags on a supermarket display
- Asking for a price reduction on a product perceived as old
- Advertising a newly manufactured product to stimulate demand
4.
A buyer has not been managing contract delivery since the agreement was created a year ago. The supplier has not been delivering what was required, although the procurement organisation has been paying its monthly invoices for the last year. In all likelihood, the courts would regard this situation as...
5.
TBRF Supplies is a stationery manufacturing organisation. They market themselves by going from organisation to organisation to offer their products to corporate businesses. They made an offer to BITEND Investment. Their offer is to supply 100 reams of plain papers per month for a price of $800.00. BITEND Investors wants to accept the offer but asks TBRF Supplies to add a box of pens for the same price. This is an example of...
6.
Which of the following will terminate an offer?
7.
Which of the following will terminate an offer?
1. Revocation
2. Acceptance
3. Intention
4. Consideration
8.
Which of the following are the requirements of an acceptance? Select THREE that apply.
9.
In relation to contract formation, completion of both offer and acceptance constitutes which of the following?
10.
Which element of a legally enforceable contract constitutes a form of mutual exchange by the contracting parties?
11.
A large financial services organisation (FSO) is entering into a long term contract with a supplier for the provision of information technology (hardware, software and support).The FSO anticipates that there will be a need for the contract to change from time to time during its term. To facilitate this, which type of clause should be included within the contract when it is set up?
12.
Tee Mobiles (TM) is a mobile phone manufacturing organisation based in Germany. They have their small manufacturing branch named TZA Mobiles located in South Africa. TZA Mobiles was set up to provide a service to a number of African countries. SELL IT Technologies, a mobile phone retailer has placed an order for 5000 mobile phones from TZA Mobiles. Which of the following should SELL IT Technologies request from Tee Mobiles for in case TZA Mobiles fails to meet SELL IT Technologies’ requirement?
- Warranty
- Precedence
- Consideration
- Capacity
13.
For consideration to be valid, it must consist of which of the following requirements. Select the TWO that apply.
14.
A buyer has not been managing contract delivery since the agreement was created a year ago. The supplier has not been delivering what was required, although the procurement organisation has been paying its monthly invoices for the last year. In all likelihood, the courts would regard this situation as...
15.
TBRF Supplies is a stationery manufacturing organisation. They market themselves by going from organisation to organisation to offer their products to corporate businesses. They made an offer to BITEND Investment. Their offer is to supply 100 reams of plain papers per month for a price of $800.00. BITEND Investors wants to accept the offer but asks TBRF Supplies to add a box of pens for the same price. This is an example of...
16.
Which of the following will terminate an offer?
- Revocation
- Acceptance
- Intention
- Consideration
17.
Which of the following are the requirements of an acceptance? Select THREE that apply.
18.
In relation to contract formation, completion of both offer and acceptance constitutes which of the following?
19.
Which element of a legally enforceable contract constitutes a form of mutual exchange by the contracting parties?
20.
A large financial services organisation (FSO) is entering into a long term contract with a supplier for the provision of information technology (hardware, software and support). The FSO anticipates that there will be a need for the contract to change from time to time during its term. To facilitate this, which type of clause should be included within the contract when it is set up?
21.
Tee Mobiles (TM) is a mobile phone manufacturing organisation based in Germany. They have their small manufacturing branch named TZA Mobiles located in South Africa. TZA Mobiles was set up to provide a service to a number of African countries. SELL IT Technologies, a mobile phone retailer has placed an order for 5000 mobile phones from TZA Mobiles. Which of the following should SELL IT Technologies request from Tee Mobiles for in case TZA Mobiles fails to meet SELL IT Technologies’ requirement?
22.
Super Clean Group (SCG) is a large facilities management organisation. One of its procurement officers (PO) has a meeting with a cleaning company about a potential future contract. The cleaning company has already submitted a quote to the PO, based on a specification that was provided. The PO explained that he had the authority to commit SCG to the contract and confirmed that the price was acceptable for the services being offered. The PO and the cleaning company agreed that the contract would commence in one month’s time. In addition to the offer and acceptance which of the following from this scenario makes this a legally binding contract?
- Warranty
- Precedence
- Consideration
- Capacity
23.
For consideration to be valid, it must consist of which of the following requirements. Select the TWO that apply.
24.
The concept of ‘battle of forms’ relates mostly to which of the following?
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