NIGP Terms - Volume III Questions with Answers

NIGP Terms - Volume III Questions with Answers Advance Payments - Answer-Agreed upon disbursements between buyer and seller made prior to the delivery of the contracted goods and services. Payments may be for a stated amount or for a percentage of the purchase price. Sometimes referred to as Cash in Advance. Agreement - Answer-An understanding between two or more parties in which they state a common understanding and intention regarding past or future intentions or facts, sometimes with a view to altering performance, rights, and obligations. When the additional elements of a contract are satisfied, e.g., mutual obligation (consideration), capacity, definiteness, and legal purpose, contracts may be formed. Then the terms agreements and contracts are sometimes used synonymously Arbitration - Answer-1. A process by which a dispute between parties is presented to one or more disinterested parties (arbitrators or neutrals) for a decision, whose decision the contending parties agree to accept with no further appeal process. Also known as binding arbitration. 2. The resolution of a conflict between parties by a party removed from the dispute. 3. A form of Alternative Dispute Resolution.