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NEW QUESTION 49
If service level agreement is used as a schedule that makes up the contract, it will be most likely to be a part of...?
- A. Performance management framework
- B. Specifications
- C. Pricing arrangement
- D. Exclusion of liabilities
If a service level agreement is used as a schedule to a contract, it will generally have the following contents:
- Service definitions. If the service information is provided by the specification, SLA should only refer to the specification to avoid any inconsistencies.
- Details on how to measure KPIs, who will measure KPIs
- Minimum requirements or targets
- Remedies if the minimum requirements are not met
Since SLA often lists out the KPI targets, consequences for not meeting the KPI targets and remedies to situation of poor performance, it is a part of performance management.
LO 2, AC 2.2
NEW QUESTION 50
ABC Ltd is a UK based company. It plans to enter into a contract with XYZ Ltd which is based in Singapore. Which of the following are the mandatory elements for the contract between ABC Ltd and XYZ Ltd to be legally binding? Select THREE that apply.
- A. There must be an offer and an acceptance
- B. All parties must have capacity to contract
- C. The two parties must have intention to be bound
- D. An amount of money must be paid upfront
- E. There must be an invitation to treat
- F. The invitation to tender must be sent by the agreed deadline
The formation of the contract is where the contractual journey begins; if no contract is formed, neither of the parties can be under any obligations. Therefore, it is very important to have an understanding of each part of a contract's formation.
In order for a legally binding agreement to be formed, there are four basic requirements to be met:
2.3 Certainty & Intention to Create Legal Relations
2.4 Consideration & Promissory Estoppel
- CIPS study guide page 28-42
- Formation of the contract
LO 1, AC 1.2
NEW QUESTION 51
Company A buys a lorry from Company B on hire purchase. During the contractual period, Company A makes default in paying the instalment. Company B has...?
- A. The option to repossess the lorry
- B. The right to take repossession of the lorry
- C. No right to take repossession
- D. Company B has to approach the court
Hire purchase is an arrangement for buying expensive consumer goods, where the buyer makes an initial down payment and pays the balance plus interest in installments. Ownership is not transferred until the end of the agreement, hire purchase plans offer more protection to the vendor than other sales or leasing methods for unsecured items. That's because the items can be repossessed more easily should the buyer be unable to keep up with the repayments.
The answer is that Company B has the right to take repossession of the lorry.
- Hire Purchase Agreements
- CIPS study guide page 70
LO 1, AC 1.3
NEW QUESTION 52
In which of the following section of a specification, requirements for training to use the equipment will be set out?
- A. Issue reference
- B. Consultation requirements
- C. Performance
- D. Implementation
Implementation is a substantive requirement which covers the following areas:
- Will there be a need to train the staff to use the equipment?
- Are there integration requirements with other systems or processes?
- How will this work?
- What are the timescales?
- Are detailed method statements required?
Consultation requirements regards to explicitness of compliance with any national or local legal requirements Reference:
LO 2, AC 2.1
NEW QUESTION 53
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