Which of the following statements is true about model form of contract?

Which of the following statements is true about model form of contract?
A . When model contracts are employed, there are no requirements for legal advice and input
B. Model contract form’s standard clauses often contain correct legal terminology without recourse to third party experts.
C. The standard clauses of model contract forms give the offeror legal advantages over the offeree
D. Only the publishers of model forms of contract can edit the clauses of these forms

View Answer

Answer: B

Explanation:

Model forms of contract are published by some industry or professional organisations such as FIDIC, ITC, CIPS,… These forms are often carefully prepared by legal professionals, with correct legal terminology. The standard clauses within these forms are based on fair and balanced risk/reward allocation between the contracting parties. The model contract forms also include standard clauses to be selected or deleted on an as required basis. Despite being standardised to be used in any jurisdiction, legal advice may be required if the users decide to make variations to the forms.

The correct answer should be "Model contract form’s standard clauses often contain correct legal terminology without recourse to third party experts."

Reference: CIPS study guide page 144-147

LO 3, AC 3.1