Contract Law & Commercial Transactions Flashcards

A subcontract for classified work is being negotiated. Where do the security requirements for the subcontractor primarily appear?

Answer: On the DD Form 254 issued by the prime to the subcontractor

The prime issues a DD 254 to the subcontractor defining its security requirements.

What is the typical purpose of a 'non-disclosure agreement' in commercial transactions?

Answer: To restrict disclosure of confidential or proprietary information

An NDA contractually limits disclosure of confidential or proprietary information.

If an NDA conflicts with the requirement to report security incidents to the government, what governs?

Answer: Mandatory government reporting requirements override the private agreement

Lawful government reporting obligations cannot be overridden by private confidentiality agreements.

What is 'liquidated damages'?

Answer: A pre-agreed sum payable upon a specified breach

Liquidated damages are a reasonable amount agreed in advance as compensation for a specific breach.

Which FAR concept protects against sharing source selection and contractor bid information during procurement?

Answer: Procurement Integrity Act

The Procurement Integrity Act restricts disclosure of contractor bid, proposal, and source selection information.

A contractor wants to assign its government contract to another company. What is generally required?

Answer: Government consent through a novation process

Transfer of a government contract generally requires government recognition via novation.

Which term describes a clause requiring the prime to pass specific contract obligations to subcontractors?

Answer: Flow-down clause

Flow-down clauses require the prime to include certain prime contract terms in subcontracts.