Contract Negotiation & Management Flashcards
7 cards from real CPP 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 Negotiation & Management flashcards as text
A supplier submits a Request for Equitable Adjustment (REA) claiming additional costs due to a buyer-directed change. Under the Changes clause, the buyer is MOST responsible for:
Answer: Negotiating fair compensation for costs directly caused by the directed change
The Changes clause obligates the buyer to equitably adjust the contract price and schedule for costs directly resulting from authorized directed changes.
Which of the following BEST describes a 'standstill agreement' in procurement negotiations?
Answer: An agreement to pause negotiations while both parties gather additional information
A standstill agreement temporarily halts negotiations, giving both parties time to reassess positions, gather data, or allow cooling-off without losing their negotiating standing.
An evergreen contract is one that:
Answer: Automatically renews at the end of each term unless notice of cancellation is given
An evergreen contract automatically renews for successive periods unless one party provides timely notice of termination, which can create unintended long-term obligations.
During a negotiation, the supplier's team suddenly requests a recess and returns with significantly changed positions. This is MOST likely an example of:
Answer: The limited authority tactic
The limited authority tactic involves one negotiating team claiming they need to consult a higher authority, often used to gain time, reset expectations, or introduce new demands.
A contract's 'warranty of merchantability' provision primarily protects the buyer by ensuring that goods:
Answer: Are fit for the ordinary purposes for which such goods are used
The implied warranty of merchantability, under UCC Article 2, guarantees that goods are fit for the ordinary purposes for which they are normally used.
When negotiating payment terms, a buyer offering '2/10 net 30' is proposing:
Answer: A 2% discount if payment is made within 10 days, with the full amount due within 30 days
The term '2/10 net 30' means the buyer receives a 2% discount if they pay within 10 days; otherwise the full invoice amount is due within 30 days.
Which contract management practice BEST ensures supplier accountability throughout the contract lifecycle?
Answer: Establishing performance metrics and regular review milestones at contract inception
Establishing clear KPIs and scheduled review milestones at the outset creates measurable accountability and allows proactive problem resolution throughout the contract.