QUESTION: 9

What does quantum meruit mean?

As much as is earned
A non-graduations promise
As much as is paid
An implied promise

Answer(s): A

Explanation:

Quantum meruit means "the amount he deserves" or "as much as he has earned". In most cases it denotes a claim for a reasonable sum in respect of services or goods supplied to the defendant. An action in quantum meruit is available to recover money for services or goods supplied to a defendant in circumstances where the claimant is not recompensed by performing his obligations or supplying the goods. The claimant must usually show that the defendant expressly or impliedly requested or freely accepted the services or goods in question. Depending on the facts, the claimant might find it difficult to prove how much the claimant is entitled to receive under the principle of quantum meruit.
A claim for quantum meruit cannot arise if the parties have a contract to pay an agreed sum. In such circumstances, the parties' relationship is governed by the law of contract. However, a claim for quantum meruit may arise where the parties:
- Have not agreed a contract, or there is a so-called quasi-contract. For example, the parties may have agreed some of the contractual terms, but may have failed to reach an agreement on an essential term, such as price.
- Have not fixed a price for the services or goods supplied.
- Have an agreement to pay a reasonable sum for the services or goods supplied.
- Have agreed a scope of work under the original contract and the work carried out falls outside that scope.

Reference:

Quantum meruit LO 3, AC 3.1

Reveal Solution Next Question

QUESTION: 10

Which of the following will be included in a conformance specification?
1. Brand names
2. Description of the operating environments

3. Chemical formulae
4. Required safety level

1 and 2 only
1 and 3 only
1 and 4 only
2 and 3 only

Answer(s): D

Explanation:

According to CIPS, there are two main types of specification:
- Conformance specification is more output driven as it outlines the product details exactly which may include the material, dimensions, tolerances, source, ingredients, packaging, storage of the part or material.
- Performance specification is more output driven in terms of what the part or material must achieve.
Among the four options, only 2. 'Description of the operating environments' and 3. 'Chemical formulae' are possible components of a conformance specification. Brand names can be a part of a performance specification, according to a document published by CIPS and NIGP.

Reference:

- CIPS study guide page 8-10
- Knowledge Byte - Specification Development
- Principles and Practices of Public Procurement: Specifications LO 1, AC 1.1

Reveal Solution Next Question

QUESTION: 11

Which of the following is the term that describes an item bought for a single and non-recurring use or purpose?

Call-off purchase
Ad-hoc purchase
Operational purchase
Stock purchase

Answer(s): B

Explanation:

Ad-hoc purchase is the item bought for a single and non-recurring use or purpose. A call-off contract, also known as a blanket order, is a purchase order which enables bulk orders over a period of time.
Operational procurement refers to the procurement of goods and services that are required to sustain an organization's day-to-day business operations.

Reference:

CIPS study guide page 58 LO 1, AC 1.3

Reveal Solution Next Question

QUESTION: 12

The pricing arrangement in which markup is added into cost base to calculate the final price is known as...?

Fixed Price approach
Market based approach
Price indices
Cost plus pricing

Answer(s): D

Explanation:

The market approach is a method of determining the value of an asset based on the selling price of similar assets.
A fixed-price strategy means you set a price and keep it constant for an extended period of time. Cost-plus pricing is also known as markup pricing. It's a pricing method where a fixed percentage is added on top of the cost to produce
A price index (PI) is a measure of how prices change over a period of time, or in other words, it is a way to measure inflation. There are multiple methods on how to calculate inflation (or deflation).

Reference:

CIPS study guide page 176-179 LO 3, AC 3.3

Reveal Solution Next Question

Free L4M3 Exam Braindumps (page: 3)

QUESTION: 9

Explanation:

Reference:

QUESTION: 10

Explanation:

Reference:

QUESTION: 11

Explanation:

Reference:

QUESTION: 12

Explanation:

Reference: