Which of the following are key features of standard terms and conditions? Select TWO that apply

Which of the following are key features of standard terms and conditions? Select TWO that apply
A . Standard terms always comply with implied terms
B. Specific to each purchase order
C. Non-disclosure
D. Non-negotiable
E. Designed to be used in repetitive transactions

View Answer

Answer: D,E

Explanation:

The key features, advantages and disadvantages of standard terms are summarized below:

– Form: Concise, generic and designed to be attached to purchase or sales orders

– Non-negotiable

– Ineffective terms: may be replaced by implied terms or national legal code rules, or subject to court ‘balance of interest’ judgement.

– Advantages: Basic contractual protection for most common circumstances; Avoid having to create new contract for repeat business.

– User friendly

– Usage: Low value, low risk, repetitive transactions

– Coverage: Definitions, relationship to other contracts, formation of the contract, order of precedence, price, invoicing and payment, specification, legal compliance, warrantee and liability, ownership and risk, intellectual property, data management and ethics.

– Disadvantages: Does not allow for specific circumstances; Risk for creating battle of the forms; Can create contractual uncertainty if used with purchase orders under call-off

contracts.

Reference: CIPS study guide page 139

LO 3, AC 3.1