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28 Cards in this Set
- Front
- Back
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Which of the following statements could be a misrepresentation?
a) The site has been rough graded. b) The site is not far from Calgary. c) The material at the site is easy to excavate. d) All of the above. |
a) The site has been rough graded |
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What kind of mistake occurs if both parties make the same mistake? a) a unilateral mistake b) a common mistake c) a mutual mistake d) it could be any of the above |
b) a common mistake |
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What kind of mistake occurs if each party has a different interpretation of the contract? a) a unilateral mistake b) a common mistake c) a mutual mistake d) it could be any of the above |
c) a mutual mistake |
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The parties can effectively deal with mistakes in written contracts by agreeing to endorsements. True or False |
True |
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If a contractor discovers, after the contract is in place and the work has begun, that its price is low because of a mistake in estimating, how is the mistake usually rectified? a) by the legal process of rectification b) by means of an addendum for the extra amount c) by means of a change order for the extra amount d) there is generally no way to rectify such a mistake |
d) there is generally no way to rectify such a mistake |
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With most construction contracts, if the information on a drawing conflicts with information in the specifications, which information takes precedence? a) neither takes precedence b) the information on a drawing c) the information in the specifications d) if the information is dated, the information with the latest date e) if the information is dated, the information with the earliest date |
c) the information in the specifications |
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Following the Ron Engineering case and subsequent cases, what are the established rules regarding subcontractor bids? a) A subtrade cannot withdraw its bid when the contractor has used the price in its bid to the owner. b) A contractor has to award a contract to the subtrade whose price is used in the contractor's bid to the owner. c) A contractor has to award a contract to the subtrade who is named in the contractor's bid to the owner. d) A contractor has to award a contract to the subtrade whose price was used and who is named in the contractor's bid to the owner. e) All of the above. |
e) All of the above. |
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When a misrepresentation occurs, the misled party can elect to affirm the contract (not rescind it) but still claim for damages: 1 - if the misrepresentation is innocent 2 - if the misrepresentation is negligent a) 1 and 2 are true. b) 1 and 2 are false. c) 1 is true, but 2 is false. d) 1 is false, but 2 is true. |
d) 1 is false, but 2 is true. |
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What happens when a contract is rescinded? 1 - the contract is ended 2 - the parties are returned to the position they were in before the contract a) 1 and 2 are true b) 1 and 2 are false c) 1 is true but 2 is false d) 1 is false but 2 is true |
a) 1 and 2 are true |
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What kind of misrepresentation has occurred if the misstatement involved was made with all due care and in good faith that it was true? a) innocent misrepresentation b) negligent misrepresentation c) fraudulent misrepresentation d) it could be any of the above |
a) innocent misrepresentation |
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Which of the following statements is a representation? a) This concrete surface needs to be grinded. b) This mix of concrete is difficult to pump. c) This concrete has a strength of 30 MPa. d) All of the above. |
c) This concrete has a strength of 30 MPa. |
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If a contractor is told to complete some extra work for free, it is not entitled to extra payment on a quantum meruit basis. True or False |
True |
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Even if an offer is clearly a mistake, such as dropping a zero from a price, an acceptance of that offer will create a contract. True or False |
True |
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If a party, just after she enters into a contract, discovers that she has been misled by an innocent misrepresentation: 1 - she can rescind the contract at her option 2 - she can sue for damages whether or not she rescinds the contract a) 1 and 2 are true. b) 1 and 2 are false. c) 1 is true, but 2 is false. d) 1 is false, but 2 is true. |
c) 1 is true, but 2 is false. |
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Rescission is not available to a party who has continued to accept the benefits of a contract even if there has been negligent misrepresentation. True or False |
True |
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If a party, just after she enters into a contract, discovers that she has been misled by a negligent misrepresentation: 1 - she can rescind the contract at her option 2 - she can sue for damages whether or not she rescinds the contract a) 1 and 2 are true. b) 1 and 2 are false. c) 1 is true, but 2 is false. d) 1 is false, but 2 is true. |
a) 1 and 2 are true. |
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If one party knows that the other party has a mistaken interpretation of the terms of a contract, is that party legally obligated to inform the other party of its mistake? Yes or No |
No |
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When a mistake occurred in connection with a contract, Court action will usually provide relief to the mistaken party. True or False |
False |
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According to the principles established in the Ron Engineering case, when does contract "A" come into existence?
a) when the owner sends a letter of intent to the contractor b) when the owner invites a contractor to bid on the work c) when the contractor submits its bid d) when the owner opens the bids e) when the owner awards the contract for the work to the contractor |
c) when the contractor submits its bid |
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A bid, even if it is irrevocable, can usually be withdrawn and/or resubmitted before the bid closing time. True or False |
True |
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Following the Ron Engineering case and subsequent cases, what are the established rules regarding subcontractor bids? a) A subtrade cannot withdraw its bid when the contractor has used the price in its bid to the owner. b) A contractor has to award a contract to the subtrade whose price is used in the contractor's bid to the owner. c) A contractor has to award a contract to the subtrade who is named in the contractor's bid to the owner. d) A contractor has to award a contract to the subtrade whose price was used and who is named in the contractor's bid to the owner. e) All of the above. |
e) All of the above. |
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What kind of misrepresentation has occurred if the misstatement involved resulted from a careless error made by the party who uttered the statement? a) innocent misrepresentation b) negligent misrepresentation c) fraudulent misrepresentation d) it could be any of the above |
b) negligent misrepresentation |
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What kind of mistake occurs if each party has a different interpretation of the contract and one party knows that the other is mistaken? a) a unilateral mistake b) a common mistake c) a mutual mistake d) it could be any of the above |
a) a unilateral mistake |
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With regard to bids for construction work: 1 - When an error is discovered after the bid closing time in an irrevocable bid, the bid cannot be changed or withdrawn without the permission of the recipient. 2 - If the bid contains an obvious mistake, the recipient has to allow the bidder to withdraw the bid. a) 1 and 2 are true b) 1 and 2 are false. c) 1 is true, but 2 is false. d) 1 is false, but 2 is true. |
a) 1 and 2 are true |
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After the tenders have closed, the owner sees that these are the bids for a project: Company W $109,100 Company X $1,200,900 Company Y $1,210,050 Company Z $1,300,000 a) The owner can immediately accept W's bid. b) The owner has to allow W to withdraw its bid. c) The owner has to allow W to change its bid to the correct amount. d) If W withdraws its bid, the owner can charge W with breach of contract 'A'. e) If W withdraws its bid, X can charge the owner with breach of contract 'A'. |
b) The owner has to allow W to withdraw its bid. |
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What does it mean when a contractor is paid on a quantum meruit basis? a) The contractor is paid for the quantity of work completed. b) The contractor is paid for the quantity of extra work completed. c) The contractor is paid a reasonable amount if the contract payment terms are inadequate. d) The contractor is paid a reasonable amount if there are no contract payment terms for the work. e) It could be any of the above. |
d) The contractor is paid a reasonable amount if there are no contract payment terms for the work. |
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According to the principles established in the Ron Engineering case, when does contract "B" come into existence?
a) when the owner invites a contractor to bid on the work b) when the contractor submits its bid c) when the owner opens the bids d) when the owner sends a letter of intent to the contractor e) when the owner awards the contract for the work to the contractor |
e) when the owner awards the contract for the work to the contractor |
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What kind of misrepresentation has occurred if the misstatement involved was made recklessly, without care about whether it was true or not? a) innocent misrepresentation b) negligent misrepresentation c) fraudulent misrepresentation d) it could be any of the above |
c) fraudulent misrepresentation |
