Online Access Free L4M3 Practice Test

Which of the following contracts would be best suited to a 'variable pricing' arrangement?

• A.A contract for the supply of 100 printing machines to be delivered next month
• B.A contract for window cleaning during the next three months
• C.A contract for the supply of lubricating oil for immediate delivery
• D.A contract for road building estimated to take five years to complete

Maria is working on a new one-off construction project and is looking to expand a factory. A requisition comes through for an outright purchase of a digger. Maria changes this to a lease order instead. Is she right to do so?

• A.Yes, equipment should always be leased and never purchased
• B.No, diggers are not allowed to be leased
• C.Yes, this saves money and the business will not end up with an unwanted asset
• D.No, buyers should not challenge or change a requisition

Express terms in a contract are stated in which of the following? Select TWO that apply

• A.Writing form
• B.Idea
• C.Statutes
• D.Orality
• E.Trade customs

You are to do the KPIs and targets for international supplier and the following was done
1. Delivery in an hour
2. Return orders in an hour
Is that a good thing or not?

• A.No, the local suppliers are always the best choice
• B.Yes, the higher the targets are, the better the outcomes will be
• C.Yes, because these targets will propel the suppliers to continuous improvement
• D.No, because the KPIs are not a realistic and justified

ABC Ltd is a UK based company. It plans to enter into a contract with XYZ Ltd which is based in Singapore.
Which of the following are the mandatory elements for the contract between ABC Ltd and XYZ Ltd to be legally binding? Select THREE that apply.

• A.There must be an offer and an acceptance
• B.The invitation to tender must be sent by the agreed deadline
• C.The two parties must have intention to be bound
• D.There must be an invitation to treat
• E.All parties must have capacity to contract
• F.An amount of money must be paid upfront