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Free L5M3 Exam Braindumps (page: 8)

Page 7 of 31
PDF with 120 Questions

Robert has a contract with Farmer Ted who provides his manufacturing firm with potatoes. There is a contract in place, signed by both parties that Ted will deliver 2 tonnes of potatoes per week. Due to changes in demand, Robert would like Ted to start providing 3 tonnes of potatoes every three weeks.
What must be in place for this change to occur?

  1. a variation clause and a new liquidated damage fee
  2. a variation clause and a signed agreement by both parties
  3. a notification of change and adequate compensation
  4. a notification of change and indemnity

Answer(s): B

Explanation:

A variation clause and signed agreement by both parties is required to make the change. See p.16-17 for more information on contract variations. Note a 'notification of change' isn't valid unless it's accepted by the other party- so it's a good idea for both parties to sign to say they agree to the change.



George is a procurement manager at a manufacturing company and is reviewing a contract he has with a supplier. He notes that there are multiple appendices to the contract and there is no Precedence of Documents.
What does this mean for the contract?

  1. all clauses are considered equal
  2. clauses in the contract take precedent over clauses in the appendices
  3. the clauses that come first in the document, take precedent
  4. the contract is not valid

Answer(s): A

Explanation:

Where there's no order of precedence, it is assumed that all documents have equal significance. This is a direct quote from the study guide p.15



Sally is shopping and sees an advert in a travel agent's window that says that flights to Malta are 50% off. She enters the shop and begins to speak to a travel agent who informs her that the poster she'd seen is out of date. Is the travel agent obliged to give Sally the discounted flight?

  1. yes- the offer was displayed and therefore must be honoured
  2. yes- the offer is valid until another offer or counter offer is provided
  3. no- the offer has been rescinded
  4. no - the advert is an invitation to treat

Answer(s): D

Explanation:

Adverts are invitations to treat - not offers. Therefore the travel agent isn't bound to provide the discounted flight. See p.3 for more information on offers and ITTs



Which of the following is not a way in which a contract can end?

  1. performance
  2. agreement
  3. litigation
  4. breach

Answer(s): C

Explanation:

Litigation is the correct answer. This is not a way in which a contract can end- it is a conflict resolution method. The three ways in which a contract can end are; performance, agreement and breach. See p.
42 for more details on how contracts end






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