Question 1

2021-04-01-09-13-17-26ac4e281adef4bae85e39b38d532e9c

Which of the following will you put into box 4?

Options :

A :

Payment Term

B : Time is of the Essence

C : Subcontracting

D : Specification

Answer: C

Question 2

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 3

Terry's Toys is a Toy Manufacturer who has an agreement to provide Toys to an online retailer. The retailer has ordered 500 toys from Terry and Terry has incurred costs of £3000 manufacturing the toys. Halfway through production the retailer calls Terry to cancel the order. Terry reads through the contract and sees a liquidated damages clause of £1000. What should Terry do?

Options :

A : Terry can apply to the court to increase the liquidated damages to £3000

B : Terry can sue the retailer for the additional costs incurred above the liquidated damages

C : Terry can deliver the toys as agreed as there is a contract in place

D : Terry can do nothing and must pay the additional £2000 out of his own pocket

Answer: D

Question 4

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 5

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

Options :

A : mediation

B : negotiation

C : arbitration

D : conciliation

Answer: B