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Download CIPS Commercial Contracting Exam Dumps

NEW QUESTION 34
Which of the following is used to detail the complex matter that may be verbiage to the main document?

• A. Schedule
• B. Standard terms and conditions
• C. Contract variation
• D. Subcontracting

Answer: A

Explanation:
Without further explanation, a schedule may be deemed to form an integral part of the obligations of either or both parties. Obviously, the scope or binding nature of such schedule depends on the way it is referred to in the obligatory language of the main agreement. Accordingly, merely attaching the general terms and conditions of sale without explaining to which part of the sale they apply or which provisions apply does not subject a sale pursuant to the body text of the agreement to those general terms and conditions.
Subcontracting is the practice of assigning, or outsourcing, part of the obligations and tasks under a contract to another party known as a subcontractor.
Reference:
- Schedules, annexes and exhibits
- CIPS study guide page 22-26
LO 1, AC 1.1

NEW QUESTION 35
According to mailbox rule in some common law countries, at which point the offeree's acceptance will be effective?

• A. When the letter of acceptance is opened and its contents read by the offeree.
• B. When the letter of acceptance is received by the offeror.
• C. When the letter of acceptance has been correctly addressed, its postage paid, and posted.
• D. When the letter of acceptance has been written.

Answer: C

Explanation:
When parties do not negotiate face-to-face, a key Question: becomes when things like acceptances, rejections and revocations take effect. The general rule is that acceptances are effective on dispatch (when they are mailed). Everything else becomes effective when the offeror actually receives them. This idea is codified by the "mailbox rule" which states that acceptance is effective on dispatch, even before the offeror has received it. (The one minor exception to this rule involves option contracts for which acceptances are not effective until they are received by the offeror.) Reference:
- The Mailbox Rule
- CIPS study guide page 34

NEW QUESTION 36
Which of the following are always considered as minimum preconditions for a contract? Select TWO that apply:

• A. Promise
• B. Omission
• C. Intention to be bound
• D. Consideration
• E. Specification

Answer: C,D

Explanation:
In order to form a contract to come into being, there are five conditions:
- Offer
- Acceptance
- Consideration
- Intention to be legally bound
- Capacity to contract
Reference:
LO 1, AC 1.2

NEW QUESTION 37
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:

• A. Review contract performance
• B. Design new specification
• C. Develop relationships with potential suppliers
• D. Submit full business justification
• E. Get high-level authority approval

Answer: D

Explanation:
This urgent needs occasionally occur due to a sudden change in circumstances. The process for selecting a replacement supplier must still be controlled. If there is a reason for normal processes to be waived, this must be fully documented and approved at a high level.
Reference:
LO 1, AC 1.1

NEW QUESTION 38
Which of the following should be specially noticed in market dialogue with suppliers in specification development?

• A. The buying organisation must avoid social media at all cost
• B. Market dialogue is banned in the public sector
• C. Market dialogue should only be conducted with well-known supplier
• D. Both parties must respect confidentiality

Answer: D

Explanation:
Being clear on your objectives helps you to design the best approach to the dialogue. There are some notices in developing dialogue with suppliers:
- All meetings should be documented
- Respect commercial confidentiality. Although insights gained from one conversation lead to questions in another, you must be very careful not to allow this to happen in a way that breaches the confidentiality of the first conversation.
Reference:
LO 2, AC 2.1

NEW QUESTION 39
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