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NEW QUESTION 34
Which of the following will you put into box 3?

  • A. specification
  • B. anticipatory breach
  • C. fundamental breach
  • D. payment terms

Answer: C

Explanation:
The correct answers are as follows:

This is a fundamental breach. The key here is the scenario says ‘huge issue’. Out of the four scenarios this one is the most important / serious and therefore will be the fundamental breach.

 

NEW QUESTION 35
What is the name given to a term in a contract where one party promises to compensate the other party for a trigger event?

  • A. damages
  • B. liability
  • C. warranty
  • D. indemnity

Answer: D

Explanation:
Indemnity- this is the definition given on p. 20

 

NEW QUESTION 36
Which of the following will you put into box 7?

  • A. Litigation
  • B. Mediation
  • C. Arbitration
  • D. Negotiation

Answer: C

Explanation:
The correct answers are as follows:

Arbitration – this is a binding resolution made by a third party. This answer could be litigation, but that option has been taken by box 6 and you can only use the answers once. Mediation would not be a binding resolution and negotiation doesn’t involve a third party.

 

NEW QUESTION 37
……

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