CON 421 Contracts - Exam 2 Study Guide 2024 Graded A

*True* - In the context of contract law, consideration means something (money, or any object or thing) given in return for services performed or for products delivered. *Offer, Acceptance, Meeting of the Minds, and Consideration* Performance, Technical Specifications and Consideration General Conditions, Supplementary Conditions and a Proposal Plans, Technical Specifications, General and Supplementary Conditions - Which of the following contract formation principles are needed to form a valid contract? *Yes* - An uncle promised his nephew $5,000 if the boy refrained from smoking until reaching the age of 21. The boy did this and upon turning 21 asked his uncle for the $5,000. When payment was refused, the nephew sued his uncle. *Q: Was there consideration?* *False* - A contract has to be enforced regardless of whether the subject of the contract is legal or not. *No* - When a local cement supplier ran out of stock, a contractor ordered 850 bags to be delivered by an upriver source at a higher price. Shortly after placing the order, the local supplier's cement shipment came in. The contractor decided to buy from the local supplier and pay damages for returning the cement upriver. Two days later a shipment of 1,000 bags from upriver arrived. Since 850 bags had been ordered, the contractor said he refused the entire shipment of 1,000 bags. *Q: Must the contractor buy any up river cement?* *True* - A contract is not binding if a party to the contract can prove that he was drunk at the time the contract was signed. *No* - A city ordinance stated that no erection or repair work on buildings was to commence prior to obtaining a building permit. A contract in that city stated work should be carried out "without obtaining any building permit". The contractor defaulted on the contract. The owner sued the contractor. *Q: Should the contractor pay damages?* *True* - A contract is a promise for the breach of which the law gives a remedy and the performance of which the law recognizes as a duty. The principle of Consideration has been met, therefore, responsive bid The principle of Legal Capacity has been met, therefore, responsive bid The principle of the meeting of the minds has been met, therefore, responsive bid *The principle of Legal Capacity has not been met, therefore, a non-responsive bid* - The owner requests that you submit a proposal supplement titled "Statement of contractors' Qualifications All Contracts" and under the officers/principals section it requests the names and titles of the vice president and the president. A proposal is submitted to the Owner with a bid bond, signed addenda, and the proposal form is attached and signed by the chief estimator. Have all of the contract formation principles been satisfied and would the proposal be considered responsive? *False* - The parties who sign the contract must be legally competent but do not have to be older than 18 years of age. *True* - In cost plus contracts, the owner must keep a field force to check the receipts, payrolls, vouchers of reimbursable items submitted by the GC *True* - Many change orders are to be expected in cost plus contracts. *True* - JOC is especially advantageous when emergencies arise. *False* - Unit price contracts are most appropriate when the design is 100% complete and the owner knows exactly what is to be built. *False* - Most public and private contracts are cost plus contracts *False* - Lump sum contracts are most appropriate when the design is not complete and the owner does not have a good idea of what is to be built *True* - In unit price contracts, the GC has the obligation to complete the job regardless of the line item quantities being smaller or larger than the A/E's estimates, as long as the variation is between 15-25%. *False* - In the JOC contract, owner selects GC only based on pricing. *False* - A big advantage of the unit price contract is that the owner knows the final cost of the job right at the outset with certainty. *True* - In lump sum contracts, the GC has the obligation to complete the job even if the cost exceeds the contract value