Question 1

Prior to circulating the service specification to a tendering supplier, it is good practice for the purchasing organisation to request completion of a non-disclosure agreement. Is this statement correct?

Options :

A : No, because the non-disclosure agreement only applies after contracting

B : Yes, because the non-disclosure agreement protects intellectual property

C : Yes, because the non-disclosure agreement encourages transparent bidding

D : No, because the non-disclosure agreement has no legal standing

Answer: B

Question 2

In contracts, implied terms play a crucial role in defining the rights and obligations of parties, even when not expressly stated in the contract. Which of the following are potential examples of implied terms? Select TWO that apply.

Options :

A : Terms that are incorporated by reference to another contract document, such as a technical specification

B :

Terms that are inferred by the courts based on general legal principles, ensuring parties act honestly and fairly in their contractual dealings

C :

Terms that are not fundamental but the breach of which entitles the innocent party to claim damages without the right to terminate the contract

D :

Terms that are fundamental to a contract, the breach of which may give rise to the right to terminate the contract

E :

Terms that are fundamental to a contract, the breach of which may give rise to the right to terminate the contract

Answer: B,E

Question 3

An office manager buys some wallpaper based on samples, only to find the batch of paper delivered is of a slightly different colour than the sample provided. Is this an implied term covered under sale by description?

Options :

A : No, it is sale by sample. The bulk does not correspond with the sample

B : Yes, it is sale by description. The wallpaper is not the correct colour

C : No, it is not of satisfactory quality. The wallpaper is not fit for purpose intended

D : Yes, it is sale by description. The wallpaper does not conform to the description

Answer: A

Question 4

Which of the following would be most suitable for a one-off purchase agreement?

Options :

A : New desk fans for a sales office

B : Copy paper for a printing supplier

C : Installation of and support for new HR software

D : Supply of vegetables for an office canteen

Answer: C

Question 5

While it is recognised that longer-term contracts have the potential to drive significant benefits for the organisation, a number of situations are more suited to making one-off purchases. Which of the below situations is likely to be more suited to a one-off purchase?

Options :

A : The ordering of equipment for a special project

B : A requirement for the maintenance of buildings

C : The purchase of compatible IT infrastructure equipment

D : The purchase of internal and external audit services

Answer: A

Free L3M4 Mock Exam – Practice Online Confidently

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