Question 1

Harry is negotiating a contract for a new IT system for his business. He is investing heavily in the system and wants the system to be able to provide the services he requires for the next 10 years. However he is aware that technology is changing quickly and would like to include a clause in the contract to ensure that the system he is purchasing is useable for the next 10 years. What should Harry include in the contract?

Options :

A : limitation of liability

B : service credits

C : benchmarking

D : change control

Answer: C

Question 2

Sarah is a baker and orders free-range eggs from a local supplier which she uses to make cakes. There is a contract in place which included a specification that states that the eggs must be free-range. One day the supplier delivers eggs which Sarah uses in the cakes. Later she discovered that these were not free-range. Sarah believes that the supplier has broken the contract. Is this true?

Options :

A : Yes- this is a breach of a condition

B : Yes- this is a fundamental breach

C : no- the specification is not a contract document

D : no - there has been a breach in a warranty

Answer: D

Question 3

2021-04-01-10-29-32-60d4982a051344803c8102c9c6f0c318

Which of the following will you put into box 6?

Options :

A : adjudication

B : arbitration

C : mediation

D : litigation

Answer: C

Question 4

Logan Gin Distillery is creating a contract for one of its new suppliers. It is a complicated item that they are ordering and if things go wrong, it would have an extremely negative impact on production, and therefore on revenue. However it is impossible to say what the cost of this would be if things were to go wrong. What type of clause should be included in the contract?

Options :

A : liquidated damages

B : unliquidated damages

C : penalty clause

D : service credit

Answer: B

Question 5

Which of the following would be included in a contract to assign costs and responsibilities between buyer and seller when products are delivered?

Options :

A : Indemnity

B : Liquidated Damages

C : Liability

D : Incoterms

Answer: D

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