WorksheetsSBEC1312 Intro to Construction Contract
Total questions: 10
Worksheet time: 5mins
Which statement best defines a contract?
Any promise made between two parties
An agreement enforceable by law between two or more parties
A written document signed by parties
A commercial transaction involving payment
Which of the following agreements can form a valid contract?
Written agreements only
Verbal agreements only
Agreements made verbally, in writing, or by conduct
Agreements witnessed by a third party
Construction contracts often contain elements of standard form contracts because:
All terms are freely negotiated
Contractors prepare all contract terms
One party has limited freedom to negotiate key terms
Courts require standardised contracts
Why is it important for a contract to be legally binding?
To allow parties to withdraw freely
To ensure a defaulting party can escape liability
To allow parties to enforce rights and claim remedies
To guarantee profit to all parties
Once a contract has been formed, it can be varied:
By either party at any time
Only by the court
Only with agreement of the contracting parties
Automatically if an error is discovered
In a construction contract, an offer refers to:
A client’s project brief
A proposal made with intention to be legally binding upon acceptance
A preliminary discussion
A cost estimate prepared by consultants
Which of the following best describes valid acceptance?
Acceptance with new conditions
Acceptance made after an unreasonable delay
Absolute and unconditional agreement to the offer
Silence by the offeree
Which statement correctly describes consideration?
It must be equal in value for both parties
It must guarantee profit
It must have economic value but need not be adequate
It must be approved by the court
Which JKR standard form is based on bills of quantities?
JKR 203
JKR 203A
PWD DB/T
PAM 2018
Which party is appointed by the main contractor and has no contractual relationship with the client?
Consultant
Clerk of Works
Nominated Subcontractor
Domestic Subcontractor
