Contract Principles

Question 1

What are the two types of authority?

Answer 1

Actual and Apparent

Question 2

What is the difference between “express actual authority” and “implied actual authority”?

Answer 2

Express Actual Authority is created by explicit language, either in writing or verbal.

Implied Actual Authority is usually defined in general terms to include authority to do what is usual, customary and necessary to accomplish the action.

Question 3

When an individual is assigned a task to accomplish but the minor details are not spelled out either verbally or in writing, this is an example of ___________.

Answer 3

Implied Actual Authority

Question 4

________ exists when someone reasonably believes an individual has the authority to act on behalf of the Government, based on his or her conduct, even though that individual has no actual authority to bind the Government.

Answer 4

Apparent authority

Question 5

Which authority is legally binding in Government contracting and recognized by the courts?

Answer 5

Actual Authority

Question 6

In DoD contracting, who has the authority to enter into a legally binding contract?

Answer 6

Contracting Officer

Question 7

T/F: Each authority is NOT delegable unless specifically stated otherwise.

Answer 7

False

Question 8

four essential elements of a contract.

Answer 8

Capacity
Mutual assent
Consideration
Lawful purpose

Question 9

__________ refers to the legal competence of a person to enter a valid contract

Answer 9

Capacity

Question 10

__________ means that parties involved in a contract must come to an agreement about the details of the transaction and each party either makes a promise or begins or renders performance.

Answer 10

Mutual assent

Question 11

___________ is something of value that a promisor (the offeror) receives from a promisee (the offeree) in return for his or her offer.

Answer 11

Consideration

Question 12

What FAR reference covers Market Research?

Answer 12

FAR Part 10

Question 13

__________ is the process used to determine if industry can support the acquisition “needs” of the Government.

Answer 13

Market research

Question 14

Define Strategic Market

Answer 14

Strategic market research is conducted continuously throughout the acquisition process.

Question 15

Define tactical market

Answer 15

actical market research is conducted at specific points during the acquisition process.

Question 16

The competitive procedures available for use in fulfilling the requirement for full and open competition are …

Answer 16

-Sealed bids. (FAR 6.401(a))
-Competitive proposals. (FAR 6.401(b)) If sealed bids are not appropriate, contracting officers shall request competitive proposals or use the other competitive procedures.
-Combination of competitive procedures. If sealed bids are not appropriate, contracting officers may use any combination of competitive procedures (e.g., two-step sealed bidding).
-Other competitive procedures.

Question 17

Per FAR 46.501, _____________ constitutes acknowledgment that the supplies or services conform with applicable contract quality and quantity requirements. Acceptance may take place before delivery, at the time of delivery, or after delivery, depending on the provisions of the terms and conditions of the contract .

Answer 17

acceptance

Question 18

A _____________ (FAR 46.315) may be used in certain instances instead of source inspection (whether the contract calls for acceptance at source or destination) at the discretion of the contracting officer

Answer 18

certificate of conformance

Question 19

Give some examples of excusable delays

Answer 19

-acts of God or of the public enemy
-acts of the Government in either its sovereign or contractual capacity
-fires
-floods
-epidemics
-quarantine restrictions
-strikes
-freight embargoes
-unusually severe weather

Question 20

What are the two types of warranties?

Answer 20

Implied Warranties and Express Warranties

Question 21

T/F: express warranties are included in all contracts

Answer 21

False; they are not included in contracts for commercial items

Question 22

A _____________ is a contract modification that is signed by the contractor and the contracting officer.

Answer 22

bilateral modification

Question 23

A _____________ is a contract modification that is signed only by the contracting officer.

Answer 23

unilateral modification

Question 24

What FAR reference discusses contract modifications policy

Answer 24

FAR 43.102

Question 25

what kind of mod is can be used to make administrative changes?

Answer 25

unilateral

Question 26

what kind of mod is can be used to definitize letter contracts?

Answer 26

bilateral

Question 27

what kind of mod is can be used to issue termination notices?

Answer 27

unilateral

Question 28

what kind of mod is can be used to make negotiated equitable adjustments resulting from the issuance of a change order?

Answer 28

bilateral

Question 29

What are the two types of terminations

Answer 29

Termination for Convenience and Termination for Default

Question 30

IAW FAR 49.102, the notice of termination may be expedited by means of _________ capable of providing confirmation of receipt by the contractor.

Answer 30

electronic communication

Question 31

T/F: Termination for Cause is similar to a default termination except it applies to commercial contract formats.

Answer 31

True

Question 32

A cure notice is issued when:

Answer 32

-Contractor fails to make progress and performance is endangered.
-Performance problems do not involve terms for delivery.
-At least 10 days remain for contract performance and correction of the problem can be reasonably expected in the time remaining

Question 33

A show cause is used either after the cure notice fails to correct the delinquency or when there is insufficient time remaining in the schedule – less than ____ days

Answer 33

10 days