Free L5M3 – Managing Contractual Risk Practice Test Question

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  A Guarantee is a secondary obligation of a contract

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  A guarantor's responsibility is higher than the Principle

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  A guarantee is a promise to repair or replace an item within a defined period of time

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  A guarantor's responsibility cannot be higher than the Principle

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  a display in a shop window

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  an advert on a website

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  an auction

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  a bid on an auction

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  a price proposal that is valid for 14 days

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  a painter is contracted to paint a room white but paints it magnolia as there was no white paint available

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  a consultant has given bad advice

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  a zoo orders three baby lions and is given three baby tigers
  a supplier has breached a non-disclosure agreement

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  A supplier delivers a lorry-load of produce six hours late due to a burst tyre.

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  A written agreement between two robbers to rob a bank which states that the money gained would be split evenly between the two.

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  a domestic agreement between two parents about who will pick the kids up from school

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  a phone call between a supplier and buyer in which the buyer agrees to purchase 100 teddy bears from the supplier for £100.

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  a written document in which Paul agrees to clean Freda's house for £10

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  an email chain between a buyer and supplier which includes a PO and Invoice

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  Orders for Specific Performance can be a lengthy and costly process

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  Orders for Specific Performance can be a cheap and quick way to remedy a breach in contract

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  If a party is ordered to complete a 'Specific Performance' and doesn't, they can be ar-rested

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  The innocent party must mitigate all losses

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  Mediation

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  Arbitration

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  Litigation

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  Negotiation

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  compete

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  avoid

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  compromise

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  collaborate

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  Condition

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  Warranty

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  Innominate Term

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  compete

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  avoid

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  compromise

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  collaborate

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  liability

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  warranty

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  damages

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  indemnity