Certified Professional Contract Manager: Negotiation and Conflict Resolution in Contracts Flashcards

Which negotiation strategy involves making a high initial offer to anchor the counterparty's expectations?

Answer: Anchoring

Anchoring sets a reference point that influences the other party's perception of a fair outcome.

Under the UCC, when parties have conflicting terms in their standard forms, which doctrine determines what becomes part of the contract?

Answer: Battle of the forms under UCC 2-207

UCC 2-207 allows a contract to form even if the acceptance contains different or additional terms, resolving conflicts through specific rules.

A contract manager discovers mid-performance that a key subcontractor is in financial distress. The BEST first step is to:

Answer: Issue a cure notice and request adequate assurance

Requesting adequate assurance under UCC 2-609 preserves the contract while addressing insolvency risk before a breach occurs.

In interest-based negotiation, what does 'separating people from the problem' primarily achieve?

Answer: Reduces emotional barriers so parties can focus on substantive issues

Depersonalizing the dispute helps negotiators engage with underlying interests rather than defending positions.

Which clause most effectively limits a contractor's liability exposure for consequential damages arising from contract disputes?

Answer: Mutual waiver of consequential damages clause

A mutual waiver of consequential damages contractually excludes lost profits and other indirect losses for both parties.

During a contract negotiation, the other party uses a 'good cop/bad cop' tactic. The most effective counter-strategy is to:

Answer: Name the tactic explicitly and refocus on interests

Identifying the tactic aloud neutralizes it by removing its psychological effectiveness.

A partnering charter in construction contracts is BEST described as:

Answer: A non-binding agreement on shared goals and dispute escalation procedures

Partnering charters are relationship documents that outline collaborative principles without creating legal obligations.