Contract Management: Chapter 14 Questions With Complete Solutions

Managing Contractual Relationships with Suppliers correct answer: Impossible to predict every single possibility at beginning of a contractual relationship Importance of moving beyond legal contractual guidelines to improve long-term suppliers and those that supply critical and strategic goods and services Pitfalls in Global Commerce correct answer: Signing contracts without reading and understanding them Making risky assumptions Making or accepting unreasonable demands Preventive Contracting correct answer: More fully understand stakeholder requirements and expectations of contractual elements Flexibility in contract terms and clauses Usually costs less to avoid getting into trouble than to pay for getting out of trouble What Does a Purchase Contract Do correct answer: Defines type of relationship Provides way for parties to obtain mutual benefits Represents the understanding of parties Basic Parts of a Contract correct answer: Introduction Identifies parties Clauses Describe different sets of conditions that parties agree to follow Schedules and appendices Provides specific details behind clauses Sample Beginning of a Contract correct answer: THIS AGREEMENT IS MADE this ___________ day of ___________ 2011 BETWEEN ABC COMPANY LIMITED, a company registered in England and having registered offices at 44 Downing Street, London, U.K. (the "Buyer") and XYZ, INC., a corporation duly organized under the laws of the Elements of a Purchase Contract correct answer: Introduction Definitions Scope of agreement Purchase orders Supply and delivery Specifications, quality, and health, safety, and environment so on etc. Typical Contract Schedules correct answer: