CPCM Contract Formation and Types 3

Question 1

The doctrine of 'parol evidence' in contract law means that:

Accepted Answer

Oral promises made before signing cannot be used to contradict a written contract

Answer

The parol evidence rule bars introduction of prior oral or written statements to contradict, vary, or add to the terms of a final integrated written contract.

Question 2

Which of the following is an example of an express warranty in a government contract?

Accepted Answer

A contractor's written guarantee that parts will function for two years

Answer

An express warranty is an explicitly stated promise — such as a written guarantee of part performance duration — rather than one implied by law.

Question 3

An 'option' in a government contract allows:

Accepted Answer

The government to unilaterally elect additional quantities or time periods at pre-established prices

Answer

Options give the government the right — but not the obligation — to acquire additional quantities or performance periods at prices agreed at time of original award.

Question 4

Which of the following best describes 'privity of contract'?

Accepted Answer

The legal relationship that exists directly between contracting parties

Answer

Privity of contract is the direct legal relationship between parties to a contract; subcontractors generally lack privity with the government.

Question 5

Under the Competition in Contracting Act (CICA), full and open competition is the default requirement primarily to:

Accepted Answer

Ensure fair pricing and prevent favoritism in government procurement

Answer

CICA mandates full and open competition to ensure the government gets the best value and to prevent conflicts of interest or favoritism in awarding public funds.

CPCM Exam Practice Test

CPCM Exam Practice Test

CPCM Contract Formation and Types 3