Which of the following are the conditions for revocation of offer to be valid?
1. The offeree has not received the offer yet
2. Revocation of offer must be communicated with the offeree
3. Revocation of offer must be sent via email
4. Offeree has not accepted the offer yet

• A.2 and 4 only
• B.1 and 4 only
• C.1 and 3 only
• D.2 and 3 only

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Maximum Score 1
A construction company wishes to place the contract for the building of a new hotel to a principal contractor using a model form contract. Which of these is an advantage of using a 'model form contract'?

• A.It avoids the requirement to create complex contracts each time but can be adapted to suit particular circumstances
• B.Formulae or indices can be included to assess any additional supplier's claims for contract price adjustment
• C.Incentive payment terms can be included to reward the supplier for attainment of cost savings
• D.Legal advice is still required if significant amendments or variations are to be made to the contract

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Which of the following is an invitation to treat?

• A.Purchase order
• B.Invoice
• C.Price list
• D.Tender bid

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Which of the following are benefits of using model form contracts? Select TWO that apply.
Liability is greatly reduced for suppliers
Suppliers can renegotiate terms more easily
They improve contract consistency
They are widely accepted in certain industries

• A.1 and 3
• B.1 and 2
• C.2 and 4
• D.3 and 4

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A procurement manager is preparing a long-term contract with a major supplier. She decides to use the variable pricing arrangement using price indices. The payment terms describe the circumstances and mechanism where the price is allowed to change. In order to successfully manage this type of contract, the buying organisation should have...?

• A.Good market knowledge
• B.Selection of base year
• C.Value for money
• D.Economy of scale

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