Question 1

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

Question 2

Which of the following would constitute an offer? Select TWO:

Options :

A : a display in a shop window

B : an advert on a website

C : an auction

D : a bid on an auction

E : a price proposal that is valid for 14 days

Answer: A,D

Question 3

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 4

Which of the following is not a form of ADR (Alternative Dispute Resolution)?

Options :

A : mediation

B : negotiation

C : arbitration

D : conciliation

Answer: B

Question 5

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