Preparing and Managing Contracts Practice Test

A8 Exam Format | Course Contents | Course Outline | Exam Syllabus | Exam Objectives

Exam: A8 Preparing and Managing Contracts

Exam Details:
- Number of Questions: The exact number of questions may vary, but the exam typically consists of multiple-choice questions.
- Time: Candidates are usually given a specific time duration to complete the exam.

Course Outline:
The A8 Preparing and Managing Contracts certification course is designed to validate candidates' knowledge and skills in contract management and administration. The course outline includes the following topics:

1. Introduction to Contract Management
- Understanding the importance and purpose of contracts
- Roles and responsibilities of contract managers
- Legal and ethical considerations in contract management

2. Preparing Contracts
- Contract planning and strategy
- Contract terms and conditions
- Request for Proposal (RFP) and contract negotiation

3. Contract Execution and Administration
- Contract implementation and monitoring
- Change management and contract amendments
- Performance evaluation and measurement

4. Contract Closeout
- Contract termination and completion
- Finalizing contractual obligations
- Lessons learned and contract review

5. Contract Risk Management
- Identifying and assessing contract risks
- Mitigating contract risks
- Contract dispute resolution and claims management

Exam Objectives:
The A8 exam aims to assess candidates' understanding of contract management principles and their ability to effectively prepare, execute, and manage contracts. The exam objectives include:

1. Demonstrating knowledge of contract management concepts, principles, and legal considerations.
2. Applying contract planning and strategy techniques to develop effective contracts.
3. Understanding contract terms and conditions and their implications.
4. Managing contract execution, including monitoring, change management, and performance evaluation.
5. Closing out contracts and finalizing contractual obligations.
6. Identifying and managing contract risks.
7. Resolving contract disputes and managing claims.

Exam Syllabus:
The exam syllabus covers the following topics:

- Introduction to Contract Management
- Preparing Contracts
- Contract Execution and Administration
- Contract Closeout
- Contract Risk Management

Candidates are expected to have a comprehensive understanding of these topics and demonstrate their ability to apply contract management principles in real-world scenarios. The exam assesses their knowledge, critical thinking skills, and ability to effectively manage contracts throughout their lifecycle.

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A8
Preparing and Managing Contracts
https://killexams.com/pass4sure/exam-detail/A8
Answer: Pending. Please Send your suggestions to support@
QUESTION: 103
a) State TWO dangers of cost reimbursable pricing.
b) Identify THREE safeguards which may help to protect the buyer against these dangers.
Answer: Pending. Please Send your suggestions to support@
QUESTION: 104
a) Give THREE implied conditions of the Sale of Goods Act (1979) relating to sale by sample.
b) Give TWO examples of contracts that would not be subject to the Sale of Goods Act (1979).
Answer: Pending. Please Send your suggestions to support@
QUESTION: 105
Identify FIVE guidelines, laid down by the Unfair Contract Terms Act (1977), that help
determine whether a contract clause is 'reasonable'.
Answer: Pending. Please Send your suggestions to support@
QUESTION: 106
a) Define the term 'fixed pricing'.
b) State THREE advantages of fixed pricing for the purchaser.
Answer: Pending. Please Send your suggestions to support@
QUESTION: 107
Briefly describe FIVE benefits of effective contract management.
Answer: Pending. Please Send your suggestions to support@
37
QUESTION: 108
State FIVE purposes of a contract.
Answer: Pending. Please Send your suggestions to support@
QUESTION: 109
You are the supply chain manager for a large hospital. Because of the constant need to Reduce
costs and maintain high standards, it has been examining the advantages and possible pitfalls of
sourcing many of its supplies from some of the emerging economies of the world, particularly
those in the Far East. After a time it becomes apparent that your staff are able to negotiate such
issues as the price and delivery time of the supplies, but do not know how to go about agreeing
contracts with international suppliers with regard to packaging and transport, as well as
customs and other duties payable. You are aware of the nature and purposes of Incoterms and
you need to make your staff aware of these. You also have in mind some specific Incoterms
that you believe would be useful for your organisation.
TASKS
a) Explain the purpose of Incoterms and the ways in which their use benefits both buyer and
seller.
b) Outline the provisions of Ex-works (EXW).
c) Outline the provisions of Free on Board (FOB).
d) Suggest which Incoterm you would use for the hospital and provide reasons for your choice.
Answer: Pending. Please Send your suggestions to support@
QUESTION: 110
You are the purchasing manager of Merson and Oakes Ltd., a major firm of construction
contractors. You realise that none of your staff understand the application of contract price
adjustment formulae. You believe that it would be a good idea to use these in long-term
contracts, due to increasing economic uncertainty in some parts of the world. Instead of using
such formulae, members of staff are either forcing suppliers to accept fixedprice contracts or
are accepting suppliers?? requests to enter into cost-plus type contracts. Also, given the long�
term nature of many contracts, you are surprised that the staff in the department do not
understand retention clauses. You are planning a training session for Merson and Oakes??s
staff. As part of your preparation undertake the following:
TASKS
a) Describe TWO disadvantages of fixed-price contracts from the buyer??s point of view, for
the long-term contracts often entered into by the company.
b) Explain ONE benefit to Merson and Oakes of using contract price adjustment formulae.
38
c) Describe how contract price adjustment formulae can be applied in this case.
d) Explain how Merson and Oakes can make use of retention clauses.
Answer: Pending. Please Send your suggestions to support@
QUESTION: 111
a) Explain the role and importance of each of the following essential elements of a contract:
i) Offer
ii) Acceptance
iii) Consideration
iv) Intention to create legal relations
b) Explain the difference between a condition of a contract and a warranty.
Answer: Pending. Please Send your suggestions to support@
39

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