Which of the following is most likely to be an one-off contract?

Which of the following is most likely to be an one-off contract?
A . Franchise Agreement
B. Framework Agreement for supply of mono-crystalline silicon
C. Contract for construction of a power plant
D. Commercial lease agreement of an office building

View Answer

Answer: C

Explanation:

One-off contracts are used where a supplier is only needed for a single activity unlikely to be repetitive, and where the need of the buyer is concrete and finite. Among the answers, only construction for power plant is one-off since the work is non-repetitive and the need is clearly defined.

A framework agreement is an agreement between one or more businesses or organisations, "the purpose of which is to establish the terms governing contracts to be awarded during a given period, in particular with regard to price and, where appropriate, the quantity envisaged".

A Commercial Lease Agreement is a contract used when renting business property to or from another individual or company. It gives the tenant (or renter) the right to use the property for business purposes during the term of the lease in exchange for payment to the landlord.

A franchise agreement is a legally binding document that outlines a franchisor’s terms and conditions for a franchisee. Every franchise is governed by these terms, which are generally outlined in a written agreement between both parties.

Reference: CIPS study guide page 55-58

LO 1, AC 1.3