Contract Law Basics Quiz

True (A)

A meeting of the minds showing an offer and acceptance.

<p>proprietary</p> Signup and view all the answers

<p>Mutual Agreement = A meeting of the minds with an offer and acceptance Legal Objective = The purpose of the contract must be legal Valid Consideration = Something of value must be exchanged Legal Capacity = The parties must have the legal ability to enter into a contract</p> Signup and view all the answers

<p>Mutual Agreement (C)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>A response to an offer that proposes different terms.</p> Signup and view all the answers

<p>Lump sum and scheduled contract (D)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>Cost plus fixed fee contract</p> Signup and view all the answers

<p>fee</p> Signup and view all the answers

<p>Turn-key Contract = Fully integrated project delivery Package Contract = Combination of multiple projects Negotiated Contract = Direct agreement on terms Running Contract = Extended period of work with several tasks</p> Signup and view all the answers

<p>Encouragement of cost increases (A)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>Unpredictable weather conditions</p> Signup and view all the answers

<p>Goods or Services (D)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>Parties must be of age and mentally competent.</p> Signup and view all the answers

<p>lump sum</p> Signup and view all the answers

<p>Unit Price contract (A)</p> Signup and view all the answers

<p>Lump sum contract = Fixed price for a project Unit rate contract = Price based on quantity of work done Cost plus fixed fee contract = Reimbursement of costs plus a set fee Cost plus percentage of cost contract = Reimbursement of costs plus a percentage markup</p> Signup and view all the answers

<p>True (A)</p> Signup and view all the answers

<p>Renegotiation of the unit price.</p> Signup and view all the answers

<p>Both A and B (C)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>Maintenance Period, Remedial works, Left Over Claims, Disputes, Closing of Accounts, Completion Certificates.</p> Signup and view all the answers

<p>entitlements and liabilities</p> Signup and view all the answers

<p>A claim can be an assertion to a contractual right. (C)</p> Signup and view all the answers

<p>Entitlements = Arise from contractual rights Liabilities = Concerns obligations under the contract Delay damages = Compensation for time lost Extension of Time = Request to extend project deadlines</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>To mediate disputes and manage claims effectively.</p> Signup and view all the answers

<p>International arbitration (A)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>Addis Ababa Chamber of Commerce &amp; Sectoral Associations (AACCSA) Arbitration Institute</p> Signup and view all the answers

<p>21 June 1985</p> Signup and view all the answers

<p>Ethiopia = Addis Ababa Chamber of Commerce &amp; Sectoral Associations (AACCSA) Arbitration Institute Kenya = Dispute Resolution Center Nigeria = Nigerian Arbitration and Conciliation Act South Africa = Center for Conflict Resolution</p> Signup and view all the answers

<p>Time Extension only (C)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>Changed conditions, Additional works, Delay for cost overruns and time extension.</p> Signup and view all the answers

<p>Amicable Dispute Resolution System</p> Signup and view all the answers

<p>Change in project management style (A)</p> Signup and view all the answers

<p>True (A)</p> Signup and view all the answers

<p>The process where parties are relieved from contractual obligations due to valid claims.</p> Signup and view all the answers

A legally binding agreement that creates, changes, or ends obligations between two or more parties, affecting their legal relationship.

An agreement where both sides clearly understand and agree to the terms of the deal.

A proposal made by one party to another, clearly outlining the terms of the agreement.

The clear and unambiguous acceptance of all the terms of the offer, without any changes.

The purpose of the contract must be legal and not against public policy.

Something of value exchanged between parties (money, goods, services) to make the contract binding.

Parties must be capable of entering a contract (not minors, mentally incompetent, etc.).

A binding contract requires mutual agreement, a legal objective, valid consideration, and legal capacity of the parties.

A promise to do something specific in exchange for something of value from the other party.

The act of accepting the terms of the offer, usually by agreeing to perform the specified action.

Both parties fulfilling their obligations as outlined in the contract.

The legally binding responsibility to fulfill the terms of the contract.

A contract where the total price is fixed upfront and doesn't change, even if costs exceed the initial estimate.

A contract where the price is determined based on the quantity of materials used and labor performed, using pre-set unit prices.

A contract that combines elements of both lump sum and unit rate contracts.

A contract where the contractor is reimbursed for all costs incurred plus a fixed fee for their services.

Combines elements of lump sum and schedule contracts, allowing for additional items to be priced based on a pre-determined rate.

Used when accurate cost prediction is difficult, such as unpredictable weather or other external factors.

A type of cost plus contract where the contractor receives a fixed fee regardless of actual costs.

A type of cost plus contract where the contractor receives a percentage of the actual costs as a fee.

A contract where the contractor is responsible for all aspects of the project, from design to completion, and delivers a fully operational facility.

A contract that bundles various project components, such as design, construction, and equipment, under a single contractor.

A contract where the terms are negotiated directly between the client and contractor, allowing for flexibility and customization.

A contract where work is completed in phases or installments, allowing for payments to be made as each phase is completed.

A disagreement or difference in opinion between parties involved in a contract.

A demand for payment, compensation, or adjustments arising from a legally binding contract.

A situation where a party tries to gain an advantage through dishonest means.

A last chance to recover losses in a failing project.

An assertion of a right related to a contract.

Claims related to additional compensation or money owed beyond the initial contract agreement.

Claims related to extending the project deadline due to unforeseen circumstances.

Claims associated with damages caused by delays or other unforeseen events.

The UNCITRAL Model Law is a set of guidelines for international arbitration, adopted in 1985. It promotes fair and consistent arbitration processes globally, and sets standards for how arbitration agreements should be structured and enforced.

The Model Law focuses specifically on international arbitration, meaning disputes between parties from different countries.

The Model Law views 'commercial' relationships broadly, covering not just contracts but any business-related interactions, regardless of legal structure.

The Addis Ababa Chamber of Commerce & Sectoral Associations (AACCSA) Arbitration Institute plays a key role in arbitration in Ethiopia.

Various organizations and initiatives exist across different regions to promote and support arbitration, such as the 'Dispute Resolution Center' in Kenya and the 'Center for Conflict Resolution' in South Africa.

Claims that focus on monetary compensation for changes or additional costs, such as rate adjustments, price changes, or provisional sum adjustments.

A method of resolving disputes without going to court, often used in construction to avoid time and cost delays.

Claims that arise due to a delay or disruption in the project's timeline, leading to time extensions, liquidated damages, or both.

A category of claim causes focused on unexpected changes to the original project scope, leading to additional work and costs.

These claims are based on contractual obligations that are not met by either party, like delays in payments or project terminations.

This type of ADR focuses on friendly resolution through negotiation, mediation, or mini-trials, aiming to keep things simple and confidential.

Claims caused by poorly defined contracts, inadequate project management, or unforeseen situations during execution.

These claims focus on additional work outside of the original scope, leading to cost and time overruns.