Understanding Construction Contracts: Key Provisions and Breach of Contract, Exams of Nursing

Download Understanding Construction Contracts: Key Provisions and Breach of Contract and more Exams Nursing in PDF only on Docsity! Contracts for CCB Questions and Answers 2024 _____ are legally binding agreements between two or more parties 1. Agreements 2. Contracts 3. Deals 4. Legislation ✔Contracts In some situations, verbal contracts may not be enforceable. 1. True 2. False ✔True Which of the following is the best purpose served by a contract? 1. Outlining payment terms 2. Limiting the liabilities of the parties involved 3. Defining the obligations of the agreement 4. All of the above ✔All of the above Which of following is not a key element that must be in effect to make a contract binding? 1. Legal purpose 2. Incompetent parties 3. Offer and acceptance 4. Consideration ✔Incompetent parties All parties must be clear on the essential details and obligations of the contract to have a valid offer. 1. True 2. False ✔True An offer generally has _____ days in which an acceptance needs to be made. 1. 30 2. 45 3. 60 4. 90 ✔30 If a deadline for acceptance is not outlined in the offer, it expires in a(n) _____. 1. Adequate time 2. Short time 3. Reasonable time 4. Decent time ✔Reasonable time _____ is the process where the owner and contractor agree on the price and terms of the contract. 1. Debate 2. Negotiation 3. Discussion 4. Quarreling ✔Negotiation _____ is agreeing to the offer made and is generally done by signing the offer. 1. Negotiation 2. Acceptance 3. Agreement 4. Denial ✔Acceptance Which of the following is a component that should be included in a contract? 1. Conditions for scheduled delays 2. Date of the offer 3. Expiration date of the offer 4. All of the above ✔All of the above _____ should be clearly outlined in the contract 1. Contract agreement 2. Payment terms 3. Payment disclosure forms 4. Contract agreements ✔Payment terms A situation where parties may not have legal capacity might be if you contracted with someone who is heavily under the influence of drugs or alcohol. 1. True 2. False ✔True A contractor must be licensed and properly endorsed by the _____ to enforce a construction contract. 1. Oregon Construction Contractors Board (CCB) 2. Oregon Builders Board (OBB) 3. Oregon Construction Builders (OCB) The obligations of the parties should be _____ in the contract and include both the contractor's obligations and the owner's obligations. 1. Relatively specific 2. Specifically outlined 3. Vaguely mentioned 4. Basically understood ✔Specifically outlined Contractor's obligations include, but are not limited to which of the following? 1. Securing building permits 2. Completing all work according to plans and specifications 3. Having proper license 4. All of the above ✔All of the above Owner's obligations include, but are not limited to, all of the following except: 1. Providing access to the construction site in a timely manner 2. Ensuring prompt approval of all plans and specifications 3. Ensuring the project meets zoning specification 4. Having and organized binder full of all paperwork ✔Having and organized binder full of all paperwork Most contracts require agreement by both parties if obligations are assigned to another party. 1. True 2. False ✔True The _____ modify the general conditions of the contract and are often prepared in a separate document. 1. Incremental conditions 2. Supplemental conditions 3. Partial conditions 4. Timely conditions ✔Supplemental conditions The term _____ refers to standard language or clauses used in a legal contract. 1. Boilerplate 2. Boilermaker 3. Hotplate 4. Scorch maker ✔Boilerplate It is not important to have your contract address the allocation of risk among parties. 1. True 2. False ✔False _____ addresses "acts of God" and other external events such as war or labor strikes. 1. Differing site conditions 2. Indemnification 3. Force majeure 4. Warranties or guarantees ✔Force majeure _____ absolves the indemnified party from any payment of losses and damages incurred by a third party. 1. Force majeure 2. Warranties or guarantees 3. Delays and extensions of time 4. Indemnification ✔Indemnification This provision allocated the responsibility for extra costs due to unexpected site conditions. 1. Indemnification 2. Differing site conditions 3. Delays and extensions of time 4. Force Majeure ✔Differing site conditions These define the contractor's responsibility for the repair of defects to the construction project after the completion of work. 1. Delays and extensions of time 2. Force majeure 3. Indemnification 4. Warranties of guarantees ✔Warranties of guarantees _____ provide a contingency in case the completion date is not met. 1. Delays and extensions of time 2. Indemnification 3. Differing site conditions 4. Force majeure ✔Delays and extensions of time _____ provides assignment of costs incurred to complete a project ahead of schedule. 1. Artistic charges 2. Differing site conditions 3. Schedule acceleration 4. Dorce majeure ✔Schedule acceleration This clause addresses changes made by the architect or design professional during the course of the project for artistic or creative purpose. 1. Differing site conditions 2. Artistic changes 3. Schedule acceleration 4. Force majeure ✔Artistic changes _____ must be used when specifying risk assignments to make the contract enforceable. Choose the best answer. 1. Complex diction 2. Standard legal language 3. Standard contract allegories 4. Common language ✔Standard legal language _____ are language at the beginning of the contract that provide background to the contract. 1. Dictions 2. Credits 3. Recitals 4. Lyrics ✔Recitals Recitals cannot always be enforced by law. 1. True 2. False ✔True Contractors and subcontractors are obligated to perform their contractual duties unless. 1. They get a higher offer from another job site 2. They are no longer interested in doing the work 3. Those duties seen unrealistic and unattainable 4. Those duties are excused by breach of the contract by the other party ✔Those duties are excused by breach of the contract by the other party The _____ on a major project is usually the only contractor in a direct relationship with the owner. 1. General contractor 2. Subcontractor 3. Mid Contractor 4. Executive contractor ✔General contractor The general contractor typically dies not need to directly perform the work. _____ is a legal term that describes an act or event that must occur before performance under a contract is required. 1. Legal precedent 2. Employer precedent 3. Application precedent 4. Condition precedent ✔Condition precedent If the owner does not obtain a septic permit, then the contractor's duty to perform is excused. 1. True 2. False ✔True Oregon law permits a property owner to cancel an initial contract for construction improvement or repair of a residential structure with _____ day's notice. 1. two 2. Seven 3. One 4. Five ✔One When canceling a project, the owner must notify the contractor _____. 1. In person 2. Over the phone 3. In writing 4. In any method of their choosing ✔In writing Oregon law permits a buyer to cancel a home solicitation sale contract on _____ day's notice. 1. 3 2. 4 3. 7 4. 6 ✔3 The key to a _____ is that the contract needs to be signed by the buyer at a place other than the contractor's place of business. 1. Commercial solicitation sale 2. Home solicitation sale 3. Complex solicitation sale 4. Rental solicitation sale ✔Home solicitation sale If a contract qualifies as a home solicitation sale, it must contain certain information about cancellation rights. 1. True 2. False ✔True A _____ occurs when one of the parties involved fails to perform in accordance with any of the significant terms and conditions of the contract. 1. Retraction of coverage 2. Exclusion of terms 3. Breach of contract 4. Denial of service ✔Breach of contract A breach of contract occurs when a party does which of the following? 1. Performs an act prohibited by the contract 2. Prevents the other party from performing its obligations 3. Refuses to perform the contract 4. All of the above ✔All of the above There are two types of breaches; _____ and _____ 1. Serious, non serious 2. Commercial, non-commercial 3. Material, immaterial 4. Contract, legal ✔Material, immaterial A _____ is a serious violation of the contract. This type of breach may void the contract and will most likely end up in letigation. 1. Immaterial breach 2. Material breach 3. Constant breach 4. Consistent breach ✔Material breach Damages that are written into a contract when an injured party can seek monetary damages for the loss suffered as a result of the breach. 1. Liquidated damages 2. Stated damages 3. Both 1 and 2 4. Neither 1 or 2 ✔Liquidated damages and Stated damages Breach of contract can occur if contracts are not completed within the time specified in the contract. 1. True 2. False ✔True An owner who sues for liquidated damages cannot sue for actual damages. 1. True 2. False ✔True If you sue for breach of contract, you must do so within the _____. Choose the best answer. 1. Justification of reason 2. Bounds of the law 3. Statute of limitations 4. The correct legal methods ✔Statute of limitations Even if a claim is not filed before the statutory deadline, you can't lose the right to file a claim. 1. True 2. False ✔False A(n) _____ is a less serious violation and usually does not refult in termination of the contract. 1. Immaterial breach 2. Partial breach 3. Both 1 and 2 4. Neither 1 or 2 ✔Both 1 and 2 _____ compensate the non-breaching party for economic losses arising from a breach of contract. 1. Overages 2. Lawsuits 3. breakages 4. Damages ✔Damages Damages occur because of which of the following? 1. Lost expectation of gain 2. Reliance on the contract 3. Both 1 and 2 4. Neither 1 or 2 ✔Both 1 and 2 ✔Minimum expense contract9o In a lump-sum contract, if extra cost incurred due to inclement weather, the contractor doesn't need to pay for the costs. 1. True 2. False ✔False A _____ may be used for jobs where the extent of work cannot be fully determined, or the actual quantities of required items cannot be accurately calculated in advance. 1. Unit-price contract 2. Short-lived contract 3. Lump-sum contract 4. Cost-plus contract ✔Unit-price contract Using the _____ method, the contractor is reimbursed for the actual cost of labor and material and is paid a markup fee for overhead and profit. 1. Unit-price contract 2. Short-lived contract 3. Lump-sum contract 4. Cost-plus contract ✔Cost-plus contract The _____ method is the traditional form of contracting. 1. Design build 2. Single prime 3. Turnkey 4. Construction Management ✔Single prime Using the _____ method of construction, the owner contracts with one company to complete the process from start to finish 1. Design build 2. Single prime 3. Turnkey 4. Construction Management ✔Design build Using the _____ method, the project owner contracts with a professional construction manager to coordinate and manage the project. 1. Construction management 2. Fast-track construction 3. Single prime 4. Turnkey ✔Construction management _____ is similar to the design/build construction model. In addition to managing the construction and design team, the contractor also obtain financing and land. 1. Partnering 2. Turnkey construction 3. Multiple prime contracts 4. Fast-track construction ✔Turnkey construction Under _____ construction management the construction process begins before competing of the contract documents. 1. Fast-track 2. Partnering 3. Turnkey 4. Multiple prime contracts ✔Fast-track Large construction projects may involve _____. The owner may contract with two more prime contractors to complete aspects of the same project. 1. Partnering 2. Multiple prime contracts 3. Turnkey 4. Fast-track construction ✔Multiple prime contracts _____ starts with setting common objectives and goals for a construction project. 1. Partnering 2. Multiple prime contracts 3. Turnkey 4. Fast-track construction ✔Partnering In situations where the form of the contract is not written by you, it is important to do which of the following? 1. Make necessary additions 2. Review charges with the other party 3. Read the contract very carefully 4. All of the above ✔All of the above A _____ is an agreement between the owner and contractor to change the contract. 1. Change request 2. Change order 3. Replacement order 4. Replacement request ✔Change order Which of the following are reasons for generating a change order? 1. Unforeseen conditions when site conditions differ from expected 2. Errors or omissions in construction plan or specifications 3. Change in scope 4. All of the above ✔All of the above Change orders are not legally binding so it is not important to have clear provisions. 1. True 2. False ✔False Change orders should include all of the following except: 1. Picture of the owner 2. Description of the change work 3. Date of change order 4. Reason for change ✔Picture of the owner Changes prior to the contract award are called _____. 1. Provisions 2. Agenda 3. Addenda 4. Adjustments ✔Addenda _____ involves resolving legal disputes by avoiding the often costly and time intensive process of a government judicial trail. 1. Resolution through alternative process (RAP) 2. Alternative resolution process (ARP) 3. Resolution by alternative methods (RAM) 4. Alternative dispute resolution (ADR) ✔Alternative dispute resolution (ADR) _____ is a dialogue entered into for the purpose of resolving disputes or producing an agreed upon course or courses of action. 1. Agreement 2. Dispute resolution 3. Negotiation 4. Civil discourse ✔Negotiation In _____ the parties themselves set forth the conditions of any agreement with dialogue facilitated by an independent, third-party mediator. 1. Negotiation 1. Direction and voice 2. Description and diction 3. Language and meaning 4. Contract verbiage and length ✔Language and meaning The use of _____ is important when establishing intent in a contract. 1. Pure direction 2. Plain language 3. Easy concept 4. Difficult terminology ✔Plain languauge In a contract, you should express your intentions in _____. 1. Judicial review 2. Complex terms 3. Judicial jargon 4. Layman's terms ✔Layman's term If the provision in a dispute is vague, the actions of the parties will be examined first. 1. True 2. False ✔True _____ contract with the general contractor to complete a portion of a large project. 1. Project managers 2. Independent agents 3. Subcontractors 4. Owners ✔Subcontractors The principles that apply to owner/contractor contracts do not pply to subcontractors. 1. True 2. False ✔False Which of the following should be included in owner/contractor contracts? 1. Description of the work to be performed 2. Conditions for schedule delays 3. Names and contract information of contracting parties 4. All of the above ✔all of the above It is also important to get subcontractors in writing to _____. (Choose the best answer). 1. Avoid disputes 2. Be organized 3. Control the narrative 4. Start a lawsuit ✔Avoid disputes _____ can lead to ambiguity and one party may interpret the agreement differently than the other. 1. Remote agreement 2. Private agreement 3. Oral contracts 4. Written contracts ✔Oral contracts _____ is very important to an enforceable contract. 1. Confusion 2. Diction 3. Distinction 4. Clarity ✔Clarity