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Download Managing Contractual Risk Exam Dumps
NEW QUESTION 32
Which of the following will you put into box 6?
- A. Condition
- B. Innominate Term
- C. Warranty
The correct answers are as follows:
This is a warranty as it is a minor term. If the invoices aren't processed in 30 days this isn't a major breach- the supplier has said they'd be okay with it.
NEW QUESTION 33
A breach of representation by party A in a contract would allow party B to do what?
- A. rescind the contract
- B. nothing - this is not a fundamental breach
- C. claim damages
- D. rescind the contract and claim damages
A breach of representation is a major/ fundamental breach and allows the innocent party to rescind the contract and claim damages. A Breach of Representation is when you provide false information about who you are- this might have been a fundamental reason as to why the contract went ahead. If it turns out not to be true, the other party has the right to cancel the contract and claim damages. See p.126
NEW QUESTION 34
Tyrone Enterprises has just come out of a meeting with one of its suppliers Bob. The meeting has not gone well and the contract has become frustrated. What does this mean?
- A. a situation has occurred which means that the contract can no longer be performed
- B. The buyer no longer requires the supplier but is tied into the contract
- C. the supplier has committed a major breach and is unable to fulfil the contract
- D. Negotiations between the buyer and supplier have failed and dispute resolution will need to take place
Frustrated is when "a situation has occurred which means that the contract can no longer be per-formed". The situation is one which is outside of the control of either party and its no one's fault that this has happened. A common example of this is when contracts were unable to be performed due to Covid-19 and the national lockdown. The government mandated everyone 'stay at home' and therefore some business contracts were unable to be fulfilled, and were therefore 'frustrated' (for example the delivery of popcorn to cinemas- the cinemas were told by the government to close so the popcorn couldn't be delivered. This wasn't anyone's fault). See p. 47 for more information on Contract Frustration
NEW QUESTION 35
Which of the following is a consensual form of dispute resolution?
- A. adjudication
- B. litigation
- C. mediation
- D. negotiation
Mediation is consensual- consensual is when a third party is introduced to help reach an agreement. This is in contrast to adjudicative dispute resolution in which the third party acts as a judge and decision maker. Negotiation doesn't involve a third party so is neither. See p. 137.
NEW QUESTION 36