L4M3 Practice Exam Questions and Answers

To expand its operation, Steel Co. decides to build a new plant. Despite of excitement, the senior management is very concerned about the complexity and risks of such project. Hugo, the procurement manager, suggests that the company can adopt a model form of contract. What is the advantage of using model form of contract?

According to rule of contract formation, which of the following is a valid acceptance?

Which of the following is most likely to reduce ITT preparation time while maintaining the clarity of tendering documents?

Streaming Ltd is a music streaming provider based in the UK. The company is looking for extending its presence in the US. To achieve this, the company needs to outsource the data centre service to a local company. To monitor the performance, the procurement manager would like to introduce a service level agreement (SLA) to the data centre service provider. Which of the following should be included in the SLA?

1. System availability

2. The mean time to recover from system failure

3. The actual number of on-time service delivery

4. Dispute resolution procedure

In a sale contract, a clause requires the seller to "defend, reimburse, and hold harmless" the buyer and its personnel from and against any and all damages arising in connection with some specific circumstances. This clause is an example of...?

Which of the following are most likely to be substantive elements of the specification of a truck? Select TWO that apply:

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

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

A service contract is going to be expired, which data source is good to create specifications for ITT?

1. Incumbent supplier

2. Maintenance services

3. Alternative supplier

4. User's knowledge

A procurement manager is preparing a long-term contract with a major supplier. She decides to use the variable pricing arrangement using price indices. The payment terms describe the circumstances and mechanism where the price is allowed to change. In order to successfully manage this type of contract, the buying organisation should have...?

Which of the following are likely to be advantages of using request for quotation? Select TWO that apply:

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

Which of the following contracts would be best suited to a ‘variable pricing’ arrangement?

In a contract, both buyer and supplier agreed the lead time is 3 days. The contract also requires that any variation must be made in writing. Then the buyer places an order by phone call and requests delivery the next day, but the supplier delivers on the third day since the order. Can buyer refuse to pay as supplier did not deliver per time?

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?

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:

MWB operates serviced offices in central London. Rock entered a contractual licence with MWB to occupy office space in Marble Arch and had accumulated licence fees in arrears. The original licence agreement contained a ‘No Oral Modification’ clause that said: 'All variations to this licence must be agreed, set out in writing and signed on behalf of both parties before they take effect'.

After 6 months, Rock director re-negotiated to extend payment period over phone call and MWB credit controller agreed his proposal. Is this agreement considered as an effective variation to the original licence agreement?

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

In which of the following conditions, request for quotation produces the best results?

Which of the following will always give rise to a claim of misrepresentation?

1. Silence

2. False thought

3. Statement of fact

4. Representation by conduct

Which of the following should be used in a contract for window cleaning during the next three months?

Which of the following is a key feature of liquidated damage clauses?

Social and environmental criteria are often incorporated into which of the following type of specification?

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

Express terms in a contract are stated in which of the following? Select TWO that apply

Michelle contacts Hannah and asks her if she would be interested in purchasing her car for £2000. Hannah immediately takes £2000 to Michelle and says she wants to buy the car. Michelle subsequently refuses to proceed. Has the contract between Michelle and Hannah been made?

Company A based in Canada signed a commercial contract with Company B in Egypt. Both countries are Contracting States to Vienna Convention on Contracts for the International Sale of Goods. The contract states that "The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of Canada". Which of the following set of rules will be applied if dispute between contracting parties occurs?

Which of the following shall help the purchaser control the selection of tier 2 suppliers?