Half the Sky- Chapters 3 and 4

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A buyer and supplier have a contract and the supplier has committed a major breach. However, as they are the sole supplier to the buyer, the buyer has decided not to terminate the contract and instead to work with the supplier to remedy the situation. What is this called?

  • A. conflict resolution
  • B. affirmation of the contract
  • C. awarding damages
  • D. assigning liability

Answer: B

This is affirmation of the contract. When a breach occurs the injured party has two options; termi-nate the contract or affirm the contract. In this example they have affirmed the contract- they have chosen to continue working with the offending party. See p.60.


George is a procurement manager at a manufacturing company and is reviewing a contract he has with a supplier. He notes that there are multiple appendices to the contract and there is no Precedence of Documents. What does this mean for the contract?

  • A. all clauses are considered equal
  • B. clauses in the contract take precedent over clauses in the appendices
  • C. the contract is not valid
  • D. the clauses that come first in the document, take precedent

Answer: A

Where there's no order of precedence, it is assumed that all documents have equal significance. This is a direct quote from the study guide p.15


Franky B's is a popular restaurant chain which is seeking a resolution to a conflict it has with its supplier of Fried Chicken. It is looking for a dispute resolution that does not involve the court but in which an expert third party will make a binding decision. Which is the most suitable dispute resolution method for Franky B's?

  • A. litigation
  • B. adjudication
  • C. conciliation
  • D. mediation

Answer: B

This is Adjudication. The other answers are incorrect- litigation involves the court. Conciliation and mediation do not provide binding decisions. P. 143


Which of the following situations would be considered a minor breach of a contract? Select TWO:

  • A. a painter is contracted to paint a room white but paints it magnolia as there was no white paint available
  • B. a consultant has given bad advice
  • C. A supplier delivers a lorry-load of produce six hours late due to a burst tyre.
  • D. a supplier has breached a non-disclosure agreement
  • E. a zoo orders three baby lions and is given three baby tigers

Answer: A,D

The correct answers are: 1) the painter using magnolia instead of white, and 5) the supplier who was late on his delivery. These are considered minor breaches because the contract was still fulfilled and it didn't affect the contract in any significant way. In this type of question you have to use logic to deduce the right answer; 2) A consultant giving bad advice would be a major breach - it would be a huge issue, particularly if that advice led to an accident or death. Think about an Architect advising on a type of pillar, and it turns out that pillar can't support the weight of the building. That would be bad. 3) Lions and Tigers are not the same thing - so that would be a pretty fundamental mistake in a contract. 4) Breaching a non-disclosure agreement is usually considered a major breach of a contract (this is mentioned in chapter 2.1). See p. 48 for more information on minor breaches.