Contract Practice Quiz - 1

What does JCT stand for?

• Joint Construction Tribunal

• Joint Contracts Tribunal

• Joint Construction Team

• Joint Contracting Tribunal

What is the duration of the defects liability period at the end of a contract?

• 12 weeks

• 24 weeks

• 36 weeks

• 52 weeks

What is the main difference between a contract under deed and a contract underhand?

• The presence of a seal and witness

• The number of parties involved

• The type of construction project

• The duration of the contract

When would you look to use a bespoke contract rather than a standard form?

• For projects with a value up to £200,000

• For small projects with a straightforward construction

• For projects with a short duration

• For major projects with novel obligations

What is the standard commercial position regarding assignment?

• Assignment is allowed without any notification

• Assignment is allowed twice without consent

• Assignment is not allowed under any circumstances

• Assignment is allowed only with written consent

What is the purpose of a retention of title clause?

• To retain ownership of materials until paid for

• To ensure timely completion of the project

• To allocate risks between the parties

• To transfer ownership of materials to the main contractor

What is the key issue after a design team has been novated?

• The payment terms for the new party

• The rights of the new party to take action against the novated party

• The completion date of the project

• The insurance coverage for the new party

What is the purpose of a collateral warranty?

• To retain ownership of materials until paid for

• To transfer contractual rights to a third party

• To allocate risks between the parties

• To create a contractual relationship between the main parties

What is the main advantage of standard forms over bespoke contracts?

• Less legal expertise required

• Lower cost of preparation

• Greater consistency in application

• More flexibility in terms

What must be in place in order for liquidated damages to be deducted?

• Assignment agreement and retention of title clause

• Insurance certificate and payment receipt

• Completion certificate and payless notice

• Novation agreement and collateral warranty