Exactprep L4M3 Questions

A construction company wishes to place the contract for the building of a new hotel to a principal contractor using a model form contract. Which of these is an advantage of using a 'model form contract?'

Maximum Score: 1

When a company has decided to outsource part of its operation, the contract will need to include a number of key contract terms to minimise risk. Which of the following should be included?

A confidentiality clause designed to protect either party

A clause stating how long the service is to be outsourced

A clause stating how long the employees can take for holiday

A contract variation and price adjustment clause

Royal Naval Hospital at Rockstown, Anyport manages a fleet of nine ambulance vehicles. During busy periods, it becomes very difficult to keep track of the location of each ambulance (and the nature of their journey). Continual problems lead to the proposal for a new control system (ERNS).

For this ERNS project, the procurement department has drafted a specification in which only a bullet point list of basic requirements was written down. The procurement manager understands that the specification should be developed more specifically but a cross functional team from the Hospital could not do that. A senior buyer suggests that some of Hospital's pre-qualified suppliers could support them in developing the specification.

Which of the following should be a priority approach of procurement department in developing dialogue with those suppliers about specification development?

Maximum Score 1

Buyer O has placed an order for the supply and installation of six new servers for a total amount of £600,000 from Supplier A. Which of the following could potentially be treated as examples of a liquidated damages clause within the contract for the supply of the servers?

If the supplier delivers any of the servers late, £1,000 per server will be deducted from the order per day

This contract is subject to delay remedies of £X - the amount to be agreed by both parties during delivery

The sum for breach of the completion date for the order is £40,000 per day up to a maximum of 50% of the contract price

If the performance of any of the servers degrades within five years, a full refund of £600,000 will be provided