Reference no: EM133018700

CPCCBC4016A Administer a construction contract

Assessment Task 1 - Knowledge Questions

1. How do contracts create legal relations between parties and what constitutes a valid contract?

2. Outline three (3) standard rights and liabilities of parties in construction contracts

3. List two common circumstances that may constitute a termination of contract

4. Define the following terms utilised in a valid contract:
Seal
Tender
Damages
Blank
Annexed
Cost plus a fee
Subcontractors
Specification

5. List five (5) legislative requirements that apply to contracts in Australia

6. Where do you seek expert advice if required when preparing a contract?

7. Which of the following is true relating to a contract clause?
a) A contract clause is a specific provision or section within a written contract
b) A clause forms part of the contract and as such is legally binding
c) Each clause in a contract addresses a specific aspect related to the overall subject matter of the agreement
d) Contract clauses are aimed at clearly defining the duties, rights and privileges that each party has under the contract terms
e) There is no limit to how many clauses can be written into a contract
f) All of the above

8. Why is it important to create legal relations between parties?

a) So that the contract is legally binding between the two parties and can be upheld legally
b) So that if something goes wrong one party can call their lawyer
c) To adhere to Australian folklore
d) So that paperwork can all be done and completed due to your lawyer telling you so

9. How could you confirm the capacity of parties to form a binding agreement in the form of a contract?

10. What is the purpose of calculating contract rise and fall amounts?

11. Provide two (2) examples of situations when an application for extension of time would be applicable and what process for applying entails.

12. What are implied contracts?

13. What is ‘intention' in the context of contact formation, and why is it important?

14. Explain what is meant by ‘consent' in the context of contract formation, and list the factors that are associated with the parties' ‘consent'.

15. When can you terminate a contract?

16. What are progress payments?

17. When can a builder can invoke extension of time clause in the contract?

18. What is repudiation and list the factors associated with it?

19. When can you issue an unreasonable and vexatious notice?

20. Give an example, when the contractor will be liable to complete the work at the contractor's costs?

21. When can a builder be ousted?

22. What are liquidated damages?

23. What is practical completion and how does it differ from handover?

Attachment:- construction contract.rar