Contract Compliance & Management Flashcards
7 cards from real CCB practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Contract Compliance & Management flashcards as text
What does 'indemnification' in a contract primarily require?
Answer: One party to compensate the other for losses arising from specified events
An indemnification clause requires one party to hold the other harmless and cover losses, damages, or liabilities from specified circumstances.
A company receives a contract amendment that changes the delivery schedule. Under proper contract management, what must happen before the amendment is effective?
Answer: Execution (signature) by authorized representatives of both parties
Contract amendments require written execution by authorized signatories on both sides to be legally binding.
Which contract performance metric directly measures whether a supplier delivered outputs on time?
Answer: Schedule compliance rate
Schedule compliance rate measures the percentage of deliverables provided by the agreed-upon deadlines.
A buyer and seller dispute the interpretation of an ambiguous contract term. Courts generally resolve such ambiguity by:
Answer: Construing ambiguous terms against the drafter of the contract
The legal doctrine of 'contra proferentem' construes ambiguous language against the party who drafted the contract.
Which type of contract places the most financial risk on the contractor?
Answer: Firm-fixed-price contract
Under a firm-fixed-price contract, the contractor bears all cost risk because the price does not change regardless of actual costs incurred.
During contract closeout, which document formally acknowledges that all obligations have been satisfied?
Answer: Final acceptance certificate
A final acceptance certificate confirms that the buyer has received and accepted all deliverables and services as specified in the contract.
A compliance officer discovers that a sole-source contract was awarded without required justification documentation. This most likely violates:
Answer: Procurement integrity and competition requirements
Sole-source awards without proper justification documentation violate competition requirements and procurement integrity rules under federal and state regulations.