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NEW QUESTION 34
Which of the following encourages social and environmental criteria in public sector contracting in the UK?
- A. Children and Social Work Act
- B. Social Action, Responsibility and Heroism Act
- C. The Public Services Act
- D. Supply and Appropriation Act
Answer: C
Explanation:
Social and environmental criteria are increasingly encouraged in public sector contracting. In the UK, The Public Services (Social Value) Act 2012 encourages public organising to apply social and environmental criteria in contract.
Reference:
LO 2, AC 2.1
NEW QUESTION 35
Which of the following is the best definition of consideration in contract law?
- A. One thing given in exchange
- B. The act of thinking carefully about one thing
- C. Formal discussion between people who are trying to reach an agreement
- D. Full statement about something to provide
Answer: A
Explanation:
A simple definition of consideration is as follows – an exchange between the parties which results in a benefit to one party, and a detriment to the other. The case of Currie v Misa (1874) LR 10 Ex 153 provides an apt description of this:
“A valuable consideration, in the sense of the law, may consist either in some right, interest, profit, or benefit accruing to the one party, or some forbearance, detriment, loss, or responsibility, given, suffered, or undertaken by the other.” A practical example of this can be found by examining a simple contract. Party A offers £500 to Party B, who in exchange will fit his car with a new engine. Party A receives the benefit of his car being fixed, whilst Party B incurs the detriment of having to take time, effort, and perhaps expenses to fix the car.
Reference:
– Consideration & Promissory Estoppel
– CIPS study guide page 36-40
LO 1, AC 1.2
NEW QUESTION 36
Which of the following are likely to be express terms in a contract?
1. Legislation
2. Custom and practice
3. Contract particulars
4. Terms and conditions
- A. 3 and 4 only
- B. 1 and 2 only
- C. 1 and 4 only
- D. 2 and 3 only
Answer: A
Explanation:
Express terms are the terms of the agreement which are expressly agreed between the parties. Ideally, they will be written down in a contract between the parties but where the contract is agreed verbally, they will be the terms discussed and agreed between the parties.
The types of express terms to be found in a contract are many and varied and will depend on the type of contract. Any term written into the contract is an express term and may refer to price, time scales, warranties and indemnities, limitations on liability, conditions precedent and so on.
Reference:
– Contracts: Express and Implied Terms
– CIPS study guide page 32
LO 1, AC 1.2
NEW QUESTION 37
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?
- A. No, because the strike is a force majeur event, so Vogon did not breach any contract with SFO
- B. No, because Vogon had no intention to be bound by the quotation, therefore, it didn’t constitute a contract
- C. Yes, because the contract was formed since Vogon had sent the quotation as an acceptance to SFO’s offer
- D. Yes, because the contract had been formed between SFO and Vogon with the quotation as an offer and the notification as an acceptance
Answer: D
Explanation:
SFO issued an RFQ with defined terms and condition and detailed specification. This RFQ can be considered as an invitation to treat. Vogon’s quotation is an answer to the purchaser’s RFQ and is an offer to SFO. The contract come to life at the time Vogon received the notification from SFO senior management.
The strike may be a force majeur event, depending on the contract particular clauses and jurisdiction. In common law countries, force majeur is applicable as an exclusion of liability only if the contract allows it. In many civil law countries, force majeur is an implied term. But in every jurisdiction, force majeur is only a reason for excluding liability for non-performance of a contract. In other words, the non-performance party is not liable for any breach if force majeur event occurs but the event does not exclude the breach.
LO 1, AC 1.2
NEW QUESTION 38
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