QUESTION 79
Under general legal principles of contract formation, which of the following will always automatically result in the termination of an offer?
1. Negotiation
2. Rejection
3. Failure conditionality
4. Non-disclosure

QUESTION 80
Which of the following are true statements about RFQ process? Select TWO that apply.

QUESTION 81
In order to monitor supplier’s performance, an organization decides to draft performance management frameworks. Which of the following are the components of a performance management framework? Select THREE that apply:

QUESTION 82
When a supplier signs an insurance policy with an insurance company, which of the following is transferred to insurance company?

QUESTION 83
Which of the following is the procedure that makes no further competition under a framework agreement?

QUESTION 84
GPP, the employer, and Prosolia UK, the contractor, entered into five EPC contracts for the development of five different solar power generation plants in the United Kingdom. Four out of the five developments failed to be commissioned by the relevant due dates, with the delays ranging from 44 to 285 days.
Among other claims, GPP, acting through its two investment vehicles, claimed liquidated damages of £500 per day in all four contracts for Prosolia UK’s failure to achieve completion of the plants by the due date. The liquidated damages claimed amounted to £1,804,221 across the four delayed contracts.
Prosolia, alongside various other defences, raised the defence that the liquidated damages provision in each contract was a penalty, and therefore unenforceable against it. Is Prosolia contractually obliged to make the payment to the plaintiff?

QUESTION 85
Under a price adjustment agreement, which of the following would be supplier’s justification for increasing unit price?

QUESTION 86
Infra Constructions receive a contract for construction of a building, and following terms were agreed upon. “The entire cost of the project will be reimbursed to Infra Constructions (estimated cost of the project being $ 25 million). The profits will be 20% of the entire cost of a project subject to a max of $ 5 million.” This arrangement is an example of…?

QUESTION 87
Which of the following should be specially noticed in market dialogue with suppliers in specification development?

QUESTION 88
Southwark is negotiating a contract with Orchard to provide software and IT services. Orchard will manufacture and install the products which are contractually supplied by IBM. Southwark’s procurement manager is worried that during the contract there would be some problems that they would not able to claim for damages from Orchard. Which of the following should be included in the head contract so that Southward can sue IBM, should the need arise?

QUESTION 89
Which of the following clauses addresses fraud, bribery and corruption?
The Company has undertaken commercially reasonable efforts to eliminate Conflict Minerals from each Company Product and any products currently proposed to be manufactured by the Company or on its behalf in the future. “Conflict Minerals” means columbite-tantalite (coltan), cassiterite, gold, wolframite, or their derivatives, which originate in the Democratic Republic of the Congo or other country the exploitation and trade of which is determined by the United States to be financing conflict in the Democratic Republic of the Congo or other country.

QUESTION 90
Which of the following statements is true about model form of contract?

QUESTION 91
SFO procurement manager sent a request for quotation to Vogon International in which he determined the contract terms and specification. In SFO’s standard terms and conditions, it is stated that ‘Goods shall be delivered and Services performed by the applicable Delivery Date. Supplier must notify Buyer 3 days prior to the Delivery Date if Supplier is likely to be unable to meet a Delivery Date.’ Vogon replied with a quotation without any amendment to SFO’s terms & conditions. The SFO procurement manager found the prices were reasonable and submitted to senior management. Senior management team accepted that quotation and sent a notification to Vogon. On the Delivery Date, Vogon said they had no capacity to supply the product as the quotation due to a workers’ strike. Did Vogon breach any agreement with SFO?

QUESTION 92
Which of the following are driving forces for increasing use of social and environmental criteria in specifications? Select TWO that apply.,

QUESTION 93
CMS Corp goes into a gainshare agreement with the contractor, EIP Ltd. Both parties agree that the final fee will be calculated on target cost – target fee basis. Which of the following will affect the final fee payable in this gainshare agreement? Select TWO that apply:

QUESTION 94
In which of the following conditions, request for quotation produces the best results?

QUESTION 95
Which of the following is most likely to be an one-off contract?

QUESTION 96
Which of the following are reasons why a purchaser wants to embed a subcontracting clause into the main contract? Select TWO that apply:

QUESTION 97
Under hire purchase agreement, when will the ownership of asset legally belong to the purchaser?

QUESTION 98
You are to do the KPIs and targets for international supplier and the following was done
1. Delivery in an hour
2. Return orders in an hour
Is that a good thing or not?

QUESTION 99
Which of the following is the model form of contract for construction which is recommended by World Bank?

QUESTION 100
An organization has a normal tender process that often last 1 month from defining the needs to contract award. Manufacturing department suddenly required a new special part that they could not foresee within a month. Which of the following should be the priority actions of procurement manager in this urgent situation? Select TWO that apply:

QUESTION 101
Which of the following should be applied when measuring frequency of on-time deliveries during a contract period?

QUESTION 102
A procurement manager is setting KPIs measurement for user satisfaction. He also wants to encourage users to share the reason why they feel the way they do. Which of the following types of KPI should the procurement manager apply?