Contract Formation and Types Flashcards

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

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

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.

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

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

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

An 'option' in a government contract allows:

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

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.

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

Answer: The legal relationship that exists directly between contracting parties

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

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

Answer: Ensure fair pricing and prevent favoritism in government procurement

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.

What is the significance of the 'entire agreement' or integration clause in a contract?

Answer: It states that the written document represents the complete and final agreement of the parties

An integration clause confirms the written contract is the complete agreement, preventing either party from relying on prior negotiations or side agreements.