Question 1

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 2

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 3

Franky B's is a popular restaurant chain which is seeking a resolution to a conflict it has with its supplier of Fried Chicken. It is looking for a dispute resolution that does not involve the court but in which an expert third party will make a binding decision. Which is the most suitable dispute resolution method for Franky B's?

Options :

A : litigation

B : adjudication

C : conciliation

D : mediation

Answer: B

Question 4

Which of the following are a suitable course of action to take in the event of a minor breach of a contract? Select TWO

Options :

A : litigation

B : progress meetings

C : collaboration

D : adjudication

E : liquidated damages

Answer: B,C

Question 5

2021-03-31-15-36-11-0cfaf8452dd7dd756d2fb60fe4b41708

Which of the following will you put into box 2?

Options :

A : subcontracting

B : reputational damage

C : penalty clause

D : consequential loss

Answer: B

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