According to rule of contract formation, which of the following is a valid acceptance?
Answer(s): A
Once a valid acceptance takes place, a binding contract is formed. It is therefore important to know what constitutes a valid acceptance in order to establish if the parties are bound by the agreement.There are three main rules relating to acceptance:1. The acceptance must be communicated to the offeree.2. The terms of the acceptance must exactly match the terms of the offer.3. The agreement must be certain.Among the answers:"The person says that she will think about it overnight" does not match the terms of the offer. The offeree does not assure that she will accept the offer. "The person asks for a lower price": This is a counter-offer. "The person states that she is able to pay the offered price" is not certain. The offeree merely provides information on her financial ability.
- Contractual agreement - offer and acceptance- CIPS study guide page 33-35 LO 1, AC 1.2
Which of the following are the 'fundamental' labour standards laid down by the International Labour Organisation?1. Elimination of child labour2. Payment of a minimum wage3. The right to collective bargaining4. Abolition of forced labor
Answer(s): C
ILO Declaration on Fundamental Principles and Rights at Work was adopted in 1948. The Declaration commits Member States to respect and promote principles and rights in four categories, whether or not they have ratified the relevant Conventions.These categories are: freedom of association and the effective recognition of the right to collective bargaining, the elimination of forced or compulsory labour, the abolition of child labour and the elimination of discrimination in respect of employment and occupation.
- ILO Declaration on Fundamental Principles and Rights at Work- CIPS study guide page 161-163 LO 3, AC 3.2
A senior procurement specialist in UK is preparing a specification in which ISO standards are used to send to global suppliers. Is this action appropriate?
ISO standards are internationally agreed by worldwide experts. They overcome countries' differences and facilitate global trade. If a buying organisation is sourcing globally, they should use ISO standards within the specification.
CIPS study guide page 93-94 LO 2, AC 2.1
MWB operates serviced offices in central London. Rock entered a contractual licence with MWB to occupy office space in Marble Arch and had accumulated licence fees in arrears. The original licence agreement contained a `No Oral Modification' clause that said: 'All variations to this licence must be agreed, set out in writing and signed on behalf of both parties before they take effect'. After 6 months, Rock director re-negotiated to extend payment period over phone call and MWB credit controller agreed his proposal. Is this agreement considered as an effective variation to the original licence agreement?
The license can be amended during its lifespan. However, in this case, it already has a clause allowing for mechanism of variation which sets out who can authorise changes and prohibits any oral variation. Therefore, the agreement between Rock's director and MWB credit controller is not an effective variation to the license.
CIPS study guide page 26-27 LO 1, AC 1.1
Which of the following is most likely to be an one-off contract?
One-off contracts are used where a supplier is only needed for a single activity unlikely to be repetitive, and where the need of the buyer is concrete and finite. Among the answers, only construction for power plant is one-off since the work is non-repetitive and the need is clearly defined.A framework agreement is an agreement between one or more businesses or organisations, "the purpose of which is to establish the terms governing contracts to be awarded during a given period, in particular with regard to price and, where appropriate, the quantity envisaged". A Commercial Lease Agreement is a contract used when renting business property to or from another individual or company. It gives the tenant (or renter) the right to use the property for business purposes during the term of the lease in exchange for payment to the landlord. A franchise agreement is a legally binding document that outlines a franchisor's terms and conditions for a franchisee. Every franchise is governed by these terms, which are generally outlined in a written agreement between both parties.
CIPS study guide page 55-58 LO 1, AC 1.3
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