CAM Vendor and Contract Management 3

Question 1

A property manager discovers that a maintenance vendor has been subcontracting work to an unlicensed third party without authorization. What should the manager do?

Accepted Answer

Notify the vendor in writing that the unauthorized subcontracting violates the contract and demand corrective action

Answer

Unauthorized subcontracting is a contract breach; documenting it in writing and requiring correction protects the property legally and ensures proper oversight.

Question 2

What is the purpose of an 'assignment clause' in a vendor services contract?

Accepted Answer

To control whether the vendor can transfer the contract to another company without the property's consent

Answer

An assignment clause prevents the vendor from transferring its contractual obligations to another party without the property owner's approval, protecting service continuity.

Question 3

Which of the following is a best practice when managing multiple vendor contracts at an apartment community?

Accepted Answer

Maintain a contract tracking spreadsheet or system that records key dates, insurance expiration, and renewal deadlines

Answer

A centralized contract tracking system ensures the property never misses renewal deadlines, insurance lapses, or other critical contract milestones.

Question 4

A 'force majeure' clause in a vendor contract is designed to address which situation?

Accepted Answer

Excusing a party's non-performance due to extraordinary events beyond their control such as natural disasters

Answer

Force majeure clauses excuse non-performance caused by unforeseeable extraordinary events—such as hurricanes or pandemics—that are outside either party's control.

Question 5

What is the primary risk of relying solely on verbal agreements with property vendors rather than written contracts?

Accepted Answer

Verbal agreements are difficult to enforce and leave the property exposed if a dispute arises

Answer

Verbal agreements are nearly impossible to enforce reliably because there is no documentation of what was agreed, making disputes very difficult to resolve.

(CAM) Certified Apartment Manager Practice Test

(CAM) Certified Apartment Manager Practice Test

CAM Vendor and Contract Management 3