Quantum meruit means "the amount he deserves" or "as much as he has earned". In most cases it denotes a claim for a reasonable sum in respect of services or goods supplied to the defendant. An action in quantum meruit is available to recover money for services or goods supplied to a defendant in circumstances where the claimant is not recompensed by performing his obligations or supplying the goods. The claimant must usually show that the defendant expressly or impliedly requested or freely accepted the services or goods in question. Depending on the facts, the claimant might find it difficult to prove how much the claimant is entitled to receive under the principle of quantum meruit. A claim for quantum meruit cannot arise if the parties have a contract to pay an agreed sum. In such circumstances, the parties' relationship is governed by the law of contract. However, a claim for quantum meruit may arise where the parties: - Have not agreed a contract, or there is a so-called quasi-contract. For example, the parties may have agreed some of the contractual terms, but may have failed to reach an agreement on an essential term, such as price. - Have not fixed a price for the services or goods supplied. - Have an agreement to pay a reasonable sum for the services or goods supplied. - Have agreed a scope of work under the original contract and the work carried out falls outside that scope. Reference: LO 3, AC 3.1
Question 7
Which of the following is likely to reduce risks of different rules regarding when offers and acceptance become effective between legal systems?
Correct Answer: D
Regarding rule of offer and acceptance, there are some differences among legal system around the world. For example, mailbox rule is generally applied in common law countries such as UK, US, Australia,.. while it is ignored in civil law countries. To clarify on rule of offer and acceptance in international trade, offerors may use expressed terms in their offers. These terms known as deemed receipt protocol. Reference: LO 1, AC 1.2
Question 8
Under general legal principles of contract formation, which of the following will always automatically result in the termination of an offer? 1. Negotiation 2. Rejection 3. Failure conditionality 4. Non-disclosure
Correct Answer: D
There are a number of ways for an offer to be terminated. They are events that may occur after an offer has been made which bring it to an end so that it can no longer be accepted. An offer is terminated in the following circumstances: 1. Revocation 2. Rejection 3. Lapse of time 4. Conditional Offer (or Failure of Conditionality) 5. Operation of law 6. Death 7. Acceptance 8. Illegality Reference: - How Is an Offer Terminated? - CIPS study guide page 31-32 LO 1, AC 1.2
Question 9
Company A based in Canada signed a commercial contract with Company B in Egypt. Both countries are Contracting States to Vienna Convention on Contracts for the International Sale of Goods. The contract states that "The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of Canada". Which of the following set of rules will be applied if dispute between contracting parties occurs?
Correct Answer: B
Where the sale of goods is between two businesses in different Contracting States, then it is international and the CISG rules of law automatically apply unless they have been excluded. A contract clause stating that the contract is subject to the legal systems and courts of a particular country overrides or excludes the CISG rules, since the local rules of that country would apply instead. So the answer should be Canada's legal system. Reference: LO 1, AC 1.2
Question 10
Which of the following are among five 'pillars' of information assurance? 1. Recovery plan 2. Availability 3. Non-repudiation 4. Governance
Correct Answer: A
Information Assurance (IA) Information Assurance (IA) is the practice of managing information-related risks and the steps involved to protect information systems such as computer and network systems. The IA transformation is a partnership that stretches across the Department of Defense (DoD), Office of National Intelligence, Committee on National Security Systems, National Institute of Science and Technology (NIST), and the Office of Management and Budget. The US Government's definition of information assurance is: "measures that protect and defend information and information systems by ensuring their availability, integrity, authentication, confidentiality, and non-repudiation. These measures include providing for restoration of information systems by incorporating protection, detection, and reaction capabilities." Information Assurance (IA) is essentially protecting information systems, and is often associated with the following five pillars: - Integrity - Availability - Authentication - Confidentiality - Nonrepudiation The following pillars can be applied in a variety of ways, depending on the sensitivity of the information, or information systems within your organization. Currently, these five pillars are used at the heart of the US Governments ability to conduct safe and secure operations in a global environment. 1. Integrity Integrity involves assurance that all information systems are protected and not tampered with. IA aims to maintain integrity through means such as anti-virus software on all computer system, and ensuring all staff with access to know how to appropriately use their systems to minimize malware, or viruses entering information systems. 2. Availability Availability simply means those who need access to information, are allowed to access it. Information should be available to only those who are aware of the risks associated with information systems. 3. Authentication Authentication involves ensuring those who have access to information, are who they say they are. Ways of improving authentication involve methods such as two-factor authentication, strong passwords, bio-metrics and other devices. Authentication may also be used to not only identify users, but also other devices. 4. Confidentiality IA involves the confidentiality of information, meaning only those with authorization may view certain data. This step is closely mirrored by the six data processing principles of the General Data Protection Regulation (GDPR), where by personal data must be processed in a secure manner "using appropriate technical and organizational measures" ("integrity and confidentiality"). 5. Nonrepudiation The final pillar simply means someone with access to your organizations information system cannot deny having completed an action within the system, as there should be methods in place to prove that they did make said action. Reference: - What is Information Assurance (IA)? - CIPS study guide page 99-100 LO 2, AC 2.1
