HLT 143 EXAM 3 2026 COMPREHENSIVE
STUDY GUIDE WITH VERIFIED SOLUTIONS
◉What is Capacity? Answer: In order to be legally bound to a
contract, a party must have the capacity to understand and
appreciate the terms of the contract. Objectively, would a reasonable
person expect a mentally incompetent person or a small child to be
capable of appreciating and truly understanding a contractual
promise and obligation.
◉What is Consideration? Answer: Contracts are based on bargain
and exchange. Each party receives something of value and gives
something of value. "Consideration" is the name given to that "value"
given by each party.
◉What type of authority does a KO have? Answer: Contracting
Officer authority through formal appointment is Express Authority
◉What is an unauthorized commitment? Answer: An unauthorized
commitment is an agreement that is not binding solely because the
Government representative who made it lacked the authority to
enter into that agreement on behalf of the Government
,◉What is a ratification? Answer: The act of approving an
unauthorized commitment by official who has the authority to do so.
Supplies or services have been provided to and accepted by the
Government, or the Government otherwise has obtained a benefit
resulting from performance of the unauthorized commitment
◉Does the government recognize apparent authority? Answer:
Apparent authority is not recognized in Government
◉What is a modification? Answer: A modification is a written order
that changes the terms, price or other conditions in a contract.
◉What is a bilateral modification? Answer: Requires the signature
of the Contracting Officer and the contractor
◉What is a Unilateral? Answer: Only contracting officer's signature
needed
◉What is a change order? Answer: Written order signed by PCO,
directing the contractor to make a change without prior agreement
◉Before a KO executes a modification they must
first determine if the change is in________? Answer: In Scope
, ◉What is a constructive change? Answer: Oral or written act or
failure to act by Government official (in a position of authority)
construed by contractor as having same effect as a written change
order
◉A change to a contract is called an amendment
True or False Answer: False
◉What Six essential elements that must be present in order for a
contract to exist? Answer: 1. Mutual assent (Offer and Acceptance)
2. Consideration
3. Capacity
4. Lawful purpose
5. Certainty of terms
6. Form provided by law
◉What are the three limitation for changes for Change Orders?
Answer: Place of delivery
Change in packaging
Change to design or specifications
STUDY GUIDE WITH VERIFIED SOLUTIONS
◉What is Capacity? Answer: In order to be legally bound to a
contract, a party must have the capacity to understand and
appreciate the terms of the contract. Objectively, would a reasonable
person expect a mentally incompetent person or a small child to be
capable of appreciating and truly understanding a contractual
promise and obligation.
◉What is Consideration? Answer: Contracts are based on bargain
and exchange. Each party receives something of value and gives
something of value. "Consideration" is the name given to that "value"
given by each party.
◉What type of authority does a KO have? Answer: Contracting
Officer authority through formal appointment is Express Authority
◉What is an unauthorized commitment? Answer: An unauthorized
commitment is an agreement that is not binding solely because the
Government representative who made it lacked the authority to
enter into that agreement on behalf of the Government
,◉What is a ratification? Answer: The act of approving an
unauthorized commitment by official who has the authority to do so.
Supplies or services have been provided to and accepted by the
Government, or the Government otherwise has obtained a benefit
resulting from performance of the unauthorized commitment
◉Does the government recognize apparent authority? Answer:
Apparent authority is not recognized in Government
◉What is a modification? Answer: A modification is a written order
that changes the terms, price or other conditions in a contract.
◉What is a bilateral modification? Answer: Requires the signature
of the Contracting Officer and the contractor
◉What is a Unilateral? Answer: Only contracting officer's signature
needed
◉What is a change order? Answer: Written order signed by PCO,
directing the contractor to make a change without prior agreement
◉Before a KO executes a modification they must
first determine if the change is in________? Answer: In Scope
, ◉What is a constructive change? Answer: Oral or written act or
failure to act by Government official (in a position of authority)
construed by contractor as having same effect as a written change
order
◉A change to a contract is called an amendment
True or False Answer: False
◉What Six essential elements that must be present in order for a
contract to exist? Answer: 1. Mutual assent (Offer and Acceptance)
2. Consideration
3. Capacity
4. Lawful purpose
5. Certainty of terms
6. Form provided by law
◉What are the three limitation for changes for Change Orders?
Answer: Place of delivery
Change in packaging
Change to design or specifications
