Free L4M8 Exam Braindumps (page: 11)

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Explain with examples three differences between offers and invitation to treat.

  1. See Explanation section for answer.

Answer(s): A

Explanation:

An offer is created when one party communicates to another or to multiple parties that they wish to enter into a legal binding agreement in accordance with the terms stated, for example; a company in promotion advertising for buyers to buy one and get one free, an offer is a buying organization communicating to a supplier to supply X number of goods and be paid x amount upon delivery at company premises, an offer is when a football club proposes to pay X amount to a player if agrees to play for them for a month. An offer can be legally banded if accepted, whereas invitation to treat does not. An invitation to treat is just an invitation from one party to another to begin negotiations with the intention of creating an offer. If an offer is made without stating terms, this becomes an invitation to treat, for example, an invitation to treat is when a pharmacy displays a drug in its shelf. An invitation to treat can be linked to a request a buyer send to suppliers asking them for specific information.



Describe one implied term and one expressed term from a contract with which you are familiar.

  1. See Explanation section for answer.

Answer(s): A

Explanation:

Terms are the right and duties agreed between parties which are then documented in contract.
Terms can be implied or expressed.
Implied terms are always present in a contract and are set by national laws; implied terms do not have to be written or verbally agreed : they always exist, for example sales of Gods Act, good being fit for purpose, Negligence, confidence, whereas expressed terms are negotiated and agreed rather than being automatically included, express terms are agreed between, parties negotiating the contract. For example; payment terms, specification, delivery detail and quantities



Describe one implied term and one expressed term from a contract with which you are familiar.

  1. See Explanation section for answer.

Answer(s): A

Explanation:

Terms are the right and duties agreed between parties which are then documented in contract.

Terms can be implied or expressed.
Implied terms are always present in a contract and are set by national laws; implied terms do not have to be written or verbally agreed : they always exist, for example sales of Gods Act, good being fit for purpose, Negligence ,confidence , whereas expressed terms are negotiated and agreed rather than being automatically included, express terms are agreed between, parties negotiating the contract. For example; payment terms, specification, delivery details and quantities.



Which contract term contains details of when a product or service should be delivered and ex- plained the potential loss of business?

  1. See Explanation section for answer.

Answer(s): A

Explanation:

Contract terms are the right and duties agreed between parties with which are then documented in contract. Terms can be either implied or expression.
Implied terms are always present in a contract and are set by national laws; like the sales of goods act, whereas express terms are negotiated and created, for example; time is of the essence.
When the procurement professional is setting key performance indicators, where which the supplier's performance will be monitored and managed, the KPI is expected to be SMART. The SMART is an acronym that is used to set KPI and specification. It means:
Specific
Measurable
Achievable
Relevant
Time bound
Refer to the question column for response



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Napo Posholi commented on October 02, 2023
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