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L5M3 Managing Contractual Risk Paper *11.
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1.
If a claim for a major breach is made, courts will consider several factors before awarding any damages, including which of the following TWO?
(i) The impact of the breach
(ii) The size of the organisations
(iii) Intention of the innocent party
(iv) The impact on the public
2.
A Ltd refuses to pay substantial interim payments to B Ltd as per a financing agreement. Which of the following is true with regards to the above statement?
3.
A Ltd and B Ltd signed a contract for a duration of 5 years. 2 years later and due to changes in the economic environment, a conflict stopped the performance of the contract. Both parties are keen to get back to performing their obligations immediately however early talks between the two did not reach a resolution as both parties would not compromise. Which TWO methods of conflict resolution would be most appropriate in this case?
4.
X Ltd and Y Ltd are companies that are contracted to one another and deal with Intellectual property. A conflict has developed over some of the intellectual property rights. Which method of conflict resolution would be the least appropriate to use in this case?
5.
Which of the following dispute resolution tools is most commonly used in the construction industry?
6.
Which TWO of the following are advantages of Litigation?
i. It is quick in reaching a resolution as lawyers are used
ii. Cannot be used for stalling there ensures a decision is reached
iii. Gives rise or makes use of precedence
iv. Preserves the relationship between the parties by ensuring the court decides on the outcome of the conflic
7.
In situations where conflict resolution is taking longer than expected but it is vital for the contract to be delivered on time, which of the following would be a suitable option?
8.
Where a company is negotiating a contract but it is worried about a potential ‘act of God’ impacting its ability to perform its obligations, it could construct which of the following to allow it to terminate its obligations?
9.
Where a company is keen to agree to contract terms but is worried that due to the size of the contract, it will be put in severe hardships if a claim for damages is awarded against them. Which of the following would be most appropriate to use?
10.
Gerald has agreed to purchase Reta’s home for $50,000. As part of the agreement, he must put down a deposit of $5,000.
Both parties agree that if either of them fails to follow the terms of the contract, the other person will receive the $5,000 deposit. If Gerald fails to follow through with the purchase, Reta gets to keep the $5,000. If Reta decides she does not want to sell her home to Gerald, she must return the $5,000. This is an example of what type of clause?
11.
Which TWO of the following are considerations when deciding to use a subcontractor?
12.
Neal signs a contract agreeing to buy 10 hours of landscaping services from John's Landscaping at $50 an hour. John's Landscaping breaks the contract, and Neal is forced to hire another service at $60 an hour.
If Neal claims damages, which measure of damages is most likely to be used?
13.
Tom and Jerry agree to produce a cartoon series together. In anticipation of this agreement, Tom incurs costs to fly Jerry from his hometown to the location of the studiomand pays for his upkeep during the weeks leading up to the filming of the series. However, just before filming Jerry withdrew from the series and now Tom is seeking damages.
Which measure of assessment damages would be most appropriate?
14.
Where a party gains from breaching a contract and the innocent party cannot prove losses suffered as a result of the breach, which of the following methods of assessing damages would be most appropriate to use?
15.
Where a painter is contracted to paint a house but the house burns down when he is part of the way through. Damages can be awarded under which assessment method?
16.
Where financial compensation is not adequate to cover consequential losses as a result of a breach, which of the following would be most likely used?
17.
Which THREE of the following are valid reasons for terminating a commercial contract?
18.
Which TWO of the following are aims of using the Restitution measure to award damages?
19.
Which combination of words best describes what characteristics dispute mechanisms should have?
20.
Which TWO are reasons why negotiations break down?
21.
A right amount of conflict can increase the performance of a contract. Is this statement true or false?
22.
Which TWO the following dispute resolution methods are considered the most collaborative and informal?
i. Adjudication
ii. Mediation
iii. Litigation
iv. Negotiation
23.
Which of the following correctly defines the term Crystallised in the context of contractual non-conformance?
24.
Which of the following correctly defines limitation periods?
25.
A claim or lawsuit can be stopped because it has been filed too late to assess the real consequences of a breach. Which term best describes this situation?
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