Question 1

MWB operates serviced offices in central London. Rock entered a contractual licence with MWB to occupy office space in Marble Arch and had accumulated licence fees in arrears. The original licence agreement contained a ‘No Oral Modification’ clause that said: 'All variations to this licence must be agreed, set out in writing and signed on behalf of both parties before they take effect'.
After 6 months, Rock director re-negotiated to extend payment period over phone call and MWB credit controller agreed his proposal. Is this agreement considered as an effective variation to the original licence agreement?

Options :

A : No, because the mechanism for variation has been set out in the original contract

B : Yes, because parties who agree to altering the original contract orally despite a ‘No Oral Modification’ clause, must have intended to dispense with the clause

C : No, because Rock director assumed that the variation was effective and convinced credit controller to believe it

D : Yes, because the credit controller had agreed with Rock director’s proposal

Answer: A

Question 2

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 the order. Can buyer refuse to pay as supplier did not deliver per time?

Options :

A : No, the supplier delivers within a reasonable time

B : Yes, late delivery is a force majeure event

C : No, supplier has shortened lead time to 1 day

D : Yes, the supplier has breached the contract

Answer: A

Question 3

Which of the following is set down in statute as a liability that exists without any need to prove fault?

Options :

A : Strict liability

B : Contingent liability

C : Current liability

D : Non-current liability

Answer: A

Question 4

Crown Commercial Service signed a four-year framework agreement with three suppliers on providing street lightning services. When the services are needed, the agency holds a mini competition. Eventually, the deal was awarded to Amey Public Services (APS) which was not listed as a supplier on the framework. Is this action compliant with legal requirement?

Options :

A : Yes, because APS tender matched all Crown Commercial Service’s requirement

B : No, because APS tender had not been evaluated before contract award

C : No, because once the framework agreement is set up, no additional suppliers can be added to it

D : Yes, because the intention had been to award the contract to APS in line with the framework agreement

Answer: C

Question 5

Which of the following are likely to be advantages of using invitation to tender? Select TWO that apply:

Options :

A : Quick implementation

B : Short turnaround times

C : Reducing risks of bribery and corruption

D : Driving forward planning culture

E : Lower administration costs

Answer: C,D

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