Which of the following are key features of standard terms and conditions? Select TWO that apply
A . Standard terms always comply with implied terms
B. Specific to each purchase order
C. Non-disclosure
D. Non-negotiable
E. Designed to be used in repetitive transactions
Answer: D,E
Explanation:
The key features, advantages and disadvantages of standard terms are summarized below:
– Form: Concise, generic and designed to be attached to purchase or sales orders
– Non-negotiable
– Ineffective terms: may be replaced by implied terms or national legal code rules, or subject to court ‘balance of interest’ judgement.
– Advantages: Basic contractual protection for most common circumstances; Avoid having to create new contract for repeat business.
– User friendly
– Usage: Low value, low risk, repetitive transactions
– Coverage: Definitions, relationship to other contracts, formation of the contract, order of precedence, price, invoicing and payment, specification, legal compliance, warrantee and liability, ownership and risk, intellectual property, data management and ethics.
– Disadvantages: Does not allow for specific circumstances; Risk for creating battle of the forms; Can create contractual uncertainty if used with purchase orders under call-off
contracts.
Reference: CIPS study guide page 139
LO 3, AC 3.1
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