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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?

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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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Deeanna
24 days ago
Call off contract for sure. Gotta love those just-in-time deliveries, even if it means the construction workers have to dodge bricks falling from the sky.
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Tamar
25 days ago
Why not just have the suppliers deliver the bricks one at a time as needed? That would solve the storage problem. ????
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Erinn
26 days ago
This sounds like a one off contract to me. The fixed quantities and delivery times suggest a single, specific purchase agreement.
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Jerry
29 days ago
I think it's a framework agreement. The suppliers are delivering on a regular schedule, which sounds like a longer-term contractual relationship.
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Terry
1 months ago
Definitely a call off contract. The construction company needs a flexible supply arrangement to match their storage constraints.
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Elvera
5 days ago
B) Spot transaction
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Nikita
13 days ago
A) Framework agreement
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Charlene
2 months 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
2 months 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
2 months ago
I think the answer is D) Call off contract.
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