Question 1

In a contract, both buyer and supplier agreed the lead time is 3 days. The contract also requires that any variation must be made in writing. Then the buyer places an order by phone call and requests delivery the next day, but the supplier delivers on the third day since the order. Can buyer refuse to pay as supplier did not deliver per time?

Options :

A : No, the supplier delivers within a reasonable time

B : Yes, late delivery is a force majeure event

C : No, supplier has shortened lead time to 1 day

D : Yes, the supplier has breached the contract

Answer: A

Question 2

Which of the following is set down in statute as a liability that exists without any need to prove fault?

Options :

A : Strict liability

B : Contingent liability

C : Current liability

D : Non-current liability

Answer: A

Question 3

Transit New Zealand, a public railway authority in New Zealand, opens an ITT for a contract to realign the railroads at Vinegar Hill. The agency has a statutory obligation to employ a fair and transparent tendering process. Which of the following is one of the actions that the agency must perform to ensure their compliance with the law?

Options :

A : Deploying open tendering process in all projects

B : Deploying request for quotation in all projects

C : Using category management approaches to aggregate spend

D : Publicising the evaluation criteria

Answer: D

Question 4

MWB operates serviced offices in central London. Rock entered a contractual licence with MWB to occupy office space in Marble Arch and had accumulated licence fees in arrears. The original licence agreement contained a ‘No Oral Modification’ clause that said: 'All variations to this licence must be agreed, set out in writing and signed on behalf of both parties before they take effect'.
After 6 months, Rock director re-negotiated to extend payment period over phone call and MWB credit controller agreed his proposal. Is this agreement considered as an effective variation to the original licence agreement?

Options :

A : No, because the mechanism for variation has been set out in the original contract

B : Yes, because parties who agree to altering the original contract orally despite a ‘No Oral Modification’ clause, must have intended to dispense with the clause

C : No, because Rock director assumed that the variation was effective and convinced credit controller to believe it

D : Yes, because the credit controller had agreed with Rock director’s proposal

Answer: A

Question 5

Which of the following usually have no legal standing? Select TWO that apply:

Options :

A : Commission

B : Framework agreement

C : Framework arrangement

D : Estimate

E : Service level agreement

Answer: C,D

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