Lisa has a contract with an internet provider and the contract stated the need for Wi-Fi to be online 100% of the time. The Wi-Fi has only been available 97% of the time. In order for Lisa to claim compensation from her internet provider, which of the following would need to be present in the contract?

• A.change control
• B.liability clause
• C.service credits
• D.subcontracting

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Alan has an ongoing contract with a supplier for the provision of gardening tools to his horti-culture business. He has been working with the supplier for over 20 years and has recently discovered that the supplier committed a breach in a warranty 3 years ago. Can Alan claim damages?

• A.yes- the breach has occurred and a contract is in place
• B.yes- Alan can claim damages and rescind the contract
• C.no- Alan could only claim if the breach was of a condition, not a warranty
• D.no- Alan cannot claim because the breach was so long ago

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Which of the following will you put into box 6?

• A.adjudication
• B.arbitration
• C.mediation
• D.litigation

Correct Answer: C

The correct answers are as follows:

This is mediation because 1) it's private and 2) there's a third party present

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When drafting a liability clause in a contract, which of the following statements are TRUE? Select THREE

• A.exclusions should be narrowly defined and clearly state which types of liabilities are excluded
• B.the goal of the liability clause is to punish the contractor for poor performance
• C.liability is a legal responsibility
• D.liability can only be limited where there is valid insurance
• E.liability cannot be excluded for injury resulting from negligence

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Which of the following would not be considered acceptance of a contract term?

• A.silence
• B.accepting a delivery of a product into the factory
• C.an invoice
• D.a handshake

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