CIPS Exam L4M3 Topic 3 Question 34 Discussion

Actual exam question for CIPS's L4M3 exam

Question #: 34
Topic #: 3

[All L4M3 Questions]

A construction company is undertaking a housing development project. They need lots of bricks and other building materials, but the construction site doesn't have large area for storage of materials. Therefore, the company's suppliers must deliver the building materials with fixed quantity and at fixed time intervals. What type of contract is used between the construction company and its suppliers?

AFramework agreement

BSpot transaction

COne off contract

DCall off contract

Show Suggested Answer

Suggested Answer: C

Express terms are the terms of the agreement which are expressly agreed between the parties. Ideally, they will be written down in a contract between the parties but where the contract is agreed verbally, they will be the terms discussed and agreed between the parties.

The types of express terms to be found in a contract are many and varied and will depend on the type of contract. Any term written into the contract is an express term and may refer to price, time scales, warranties and indemnities, limitations on liability, conditions precedent and so on.

- Contracts: Express and Implied Terms

- CIPS study guide page 32

LO 1, AC 1.2

by Jamie at May 13, 2024, 01:59 PM

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Charlene

16 days ago

I'm not sure, but I think A) Framework agreement could also work in this situation. It provides a structure for future orders and pricing.

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Deeanna

21 days ago

I agree with Shawna. A call off contract allows the construction company to order materials as needed without having to store them on site.

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Shawna

24 days ago

I think the answer is D) Call off contract.

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