ASO Contract Types & Administration 2

Question 1

A security contract clause states the client may terminate services with 30 days written notice. This is known as a:

Accepted Answer

Termination for convenience clause

Answer

A termination for convenience clause allows either party to end the contract with proper notice without citing a breach.

Question 2

Which contract type places the greatest financial risk on the security contractor?

Accepted Answer

Fixed-price (lump sum) contract

Answer

In a fixed-price contract, the contractor bears all cost overruns, so if expenses exceed the bid, profit margins shrink or losses occur.

Question 3

A security officer discovers a contract amendment was verbally agreed upon by management but never signed. What is the legal status of that amendment?

Accepted Answer

Unenforceable if the original contract requires written modifications

Answer

Most contracts include a clause requiring that all amendments be in writing and signed to be binding.

Question 4

The section of a security services contract that lists specific duties, patrol schedules, and post orders is typically called the:

Accepted Answer

Statement of Work (SOW)

Answer

The Statement of Work details exactly what services the contractor must perform, including schedules and post orders.

Question 5

A client withholds payment claiming the security company breached the contract. The security company disagrees. The next appropriate step per most contract terms is:

Accepted Answer

Initiate the dispute resolution or arbitration process outlined in the contract

Answer

Most contracts include a dispute resolution mechanism — such as mediation or arbitration — that must be used before litigation.

(ASO) Armed Security Officer Certification Practice Test

(ASO) Armed Security Officer Certification Practice Test

ASO Contract Types & Administration 2