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Which of the following contracts would be best suited to a ‘variable pricing’ arrangement?
Which of the following contracts would be best suited to a ‘variable pricing’ arrangement?A . A contract for window cleaning during the next three months B. A contract for road building estimated to take five years to complete C. A contract for the supply of 100 printing machines to be...
Required safety level
Required safety levelA . 1 and 2 only B. 1 and 3 only C. 1 and 4 only D. 2 and 3 onlyView AnswerAnswer: D Explanation: According to CIPS, there are two main types of specification: - Conformance specification C is more output driven as it outlines the product details...
Is this a right course of action?
Blakenall District Hospital (BDH) is a large hospital that is a major part of the government’s health service. Purchasing staff are in the habit of placing many long-term contracts with suppliers and sub-contractors. Whilst these contracts are usually carried out successfully, prices are often paid that are well over budget....
Can buyer refuse to pay as supplier did not deliver per time?
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...
Which of the following will be always automatically deemed as a consideration?
Which of the following will be always automatically deemed as a consideration?A . Promise to perform over and above an existing obligation B. Promise given to a third party C. Implied consideration D. Past considerationView AnswerAnswer: A Explanation: Consideration only appears in common law countries. Below are some examples of...
A term can never be implied, it must always be expressed by the parties
A term can never be implied, it must always be expressed by the partiesA . 1,3 and 4 only B. 1, 2 and 3 only C. 1, 2 and 4 only D. 2, 3 and 4 onlyView AnswerAnswer: B Explanation: An implied term is a term which the courts imply...
Non-disclosure
Non-disclosureA . 3 and 4 only B. 1 and 4 only C. 1 and 2 only D. 2 and 3 onlyView AnswerAnswer: D Explanation: There are a number of ways for an offer to be terminated. They are events that may occur after an offer has been made which bring...
Which of the following is the procedure that makes no further competition under a framework agreement?
Which of the following is the procedure that makes no further competition under a framework agreement?A . Closed system B. Direct call-off C. Standing offer D. Blanket orderView AnswerAnswer: B Explanation: Direct call off is the act of placing an order under a framework agreement without having further competition. Standing...
The cost in cost reimbursable contract is...?
The cost in cost reimbursable contract is...?A . Actual cost B. Variable cost C. Fixed cost D. ProfitView AnswerAnswer: A Explanation: A cost reimbursable contract (sometimes called a cost plus contract) is one in which the contractor is reimbursed the actual costs they incur in carrying out the works, plus...
The pricing arrangement in which markup is added into cost base to calculate the final price is known as...?
The pricing arrangement in which markup is added into cost base to calculate the final price is known as...?A . Fixed Price approach B. Market based approach C. Price indices D. Cost plus pricingView AnswerAnswer: D Explanation: The market approach is a method of determining the value of an asset...
