L4M3 Commercial Contracting Flashcards
What is 1.1 in Legal Issues?
Analyse the documentation that can comprise a commercial agreement.
What is 1.2 in Legal Issues?
Analysing the legal issues that relate to the creation of contracts.
What is 1.3 in Legal Issues
Compare types of contractual agreements.
What is 2.1 and 2.2 in fundamentals of specs and KPIs
Analyse content of specs and appraise examples of KPIs
What is 3.1 in key clauses included in formal contracts?
Analyse sources and purpose of contractual terms for contracts for external suppliers.
What is 3.2 in key clauses included in formal contracts?
Recognising examples of contractual terms typically incorporated into external contracts.
What is 3.3 in key clauses included in formal contracts?
Recognising types of pricing agreements in commercial agreements.
What does IPA stand for?
Important (focus on important KPIs as these save time and money) Potential (issues and improvements) Authority (who has the authority).
What is the formula for the break-even point?
Overheads/sales per unit - cost per unit (Fixed Costs/SPU-CPU = BPU)
What is rescission?
Rescission is the primary remedy for misrepresentation is rescission, which places the parties in the position they would have been in, if the contract had not been made. The effect of the contract is reversed.
What term is given for specifications where the buyer outlines what they expect the part or material to be able to achieve?
Performance
What happens to a original offer if a counter offer is made?
It’s destroyed.
Name two advantages for the method of fixed price method of contract pricing.
It is useful when prices fluctuate over time and the supplier would bear the risk of under pricing.
Why would you use a target pricing arrangement?
To provide suppliers with an incentive.
A buyer has let a construction project for a new head office for their company on a cost plus arrangement. There is a limited budget. Is this the correct thing to do?
No because the supplier has control over the costs and can overspend!
