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CIPS - Commercial Contracting (L4M3) paper 1.
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What are TWO reasons a purchaser may wish to include a subcontracting clause in the main contract?
Which of the following elements are likely in an outcome-based specification?
1. Dimension
2. Performance requirement
3. Input material
4. Product function
Which components are typically included in a conformance specification?
1. Brand names
2.Operating environment description
3.Chemical composition
4. Required safety level
What pricing method involves adding a markup to the base cost to determine the final price?
Under common law, which of the following contractual instruments is valid without needing consideration?
Which standard construction contract is endorsed by the World Bank?
Which UK legislation promotes public sector contracting with an emphasis on social and environmental goals?
When a service level agreement (SLA) is part of a contract, which area does it primarily affect?
When considering entering a new market, which THREE external factors impact the difference between cost and price?
What tool helps clarify complex details that could be overly verbose in the primary document?
How can conflicts between orally agreed terms and a written contract be avoided before finalizing it?
What should the purchaser have to ensure the supplier follows the labor standards outlined in the contract?
In a contract that specifies a 3-day lead time, but the buyer requests next-day delivery over the phone, and the supplier delivers in 3 days, can the buyer withhold payment for late delivery?
ABC Insurance requires a new CRM system due to an increase in customer demand. Tech Ltd is chosen to supply the system, but Thomas, the technical director at Tech, made unrealistic assurances about project deadlines. ABC later seeks contract rescission. Is ABC’s request valid?
Which rewards can be included in contract terms to encourage better performance? Select THREE.
Which term describes principles that help courts interpret and uphold a contract's precise language?
What does the term quantum meruit mean?
Does the government serve as the sole provider of industrial standards?
Which characteristics define performance specifications?
1. Method to achieve the desired result
2. Desired outcome of using the product
3. Purpose of the product
4. Technical and physical properties of the product
A construction firm facing space limitations opts for scheduled deliveries of building materials, with fixed quantities and intervals. What type of contract does it use with its suppliers?
Which term refers to the relationship between profit and costs?
Which area does the ISO 14001 standard govern?
Nasa intends to contract with Oxford for software and IT services, using IBM products. To avoid potential risks and legal action, which clause should be incorporated into the primary contract to hold IBM accountable
What do you call an item purchased once for a specific purpose or use?
Which of the following actions will always result in automatic termination of an offer?
1. Negotiation
2. Rejection
3. Failure conditionality
4. Non-disclosure
Which of the following documents are likely to be legally binding? Select TWO.
Gotham Ltd. is working on a long-term contract with a supplier. To prevent underperformance, Fabian (the procurement manager) and Emma (the legal manager) draft a service level agreement (SLA) with penalties or service credits for poor performance. Which mechanisms should be included in the SLA?
1. Warranties
2. Force majeure clauses
3. Penalty clauses
4. Service credits
What benefits can the tender process offer? Select TWO.
In a sales contract, a clause requiring the seller to "protect, reimburse, and absolve" the buyer from damages is an example of:
What is it called when a third party’s claim results in one party compensating the other for damages?
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