Topic 6 to 8 Procurement and Contract Management

What is a contract?

• A verbal agreement

• An informal arrangement

• A legally enforceable agreement

• A suggestion between parties

Which of the following is NOT an element of a valid contract?

• Intention to create legal relations

• Acceptance

• Offer

• Good faith

What type of contract involves promises from both parties?

• Oral Contract

• Implied Contract

• Unilateral Contract

• Bilateral Contract

What is consideration in contract law?

• The price for a promise

• The intention to create legal relations

• The capacity to contract

• The acceptance of an offer

Which of the following is a requirement for consideration?

• It must be adequate

• It must be verbal

• It must be past

• It must be legal

Which best describe express terms in a contract?

• Terms implied by law

• Terms that are explicitly stated

• Terms that are assumed

• Terms that are verbal

What is the primary objective of contract management?

• To ensure compliance with laws

• To maximize profits

• To ensure all parties fulfill their obligations

• To minimize costs

What is a potential pitfall of poor contract management?

• Inadequate planning

• Effective communication

• Clear specifications

• Timely execution

What is the purpose of performance measurement in contract management?

• To compare actual results with planned performance

• To increase costs

• To reduce staff motivation

• To avoid communication

What is liquidated damages?

• Uncertain damages

• Predetermined damages

• Damages that are always high

• Damages that are not enforceable