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- S1: Cost plus contract is a contract used on long term construction contracts in which the contractor agrees to a contract price that is fixed, either at the inception or at a fixed rate per unit of output, which in some cases may be subject to cost escalation clauses.S2: Variable contract is a construction contract in which the contractor is reimbursed for allowable or otherwise defined costs, plus a percentage of these costs or a fixed fee * A. Both are true B. S2 True; S1 False C. Both are false D. S1True; S2 FalseBen London owns and operates Fantastic Footage, a film-editing company in Los Angeles that does contract work mostly for production companies in Hollywood. Not long ago, a local landscaping business completed nearly $8,500 worth of work around London's offices. While the initial bid seemed a little high for the amount of work that was actually done, there is no question that the work completed was of high quality, and London finally feels comfortable inviting potential clients to meet him at his office to discuss possible deals. However, because of an apparent oversight, the landscaping contractor never submitted a bill. It's been more than 15 months since the completion of the project, and London has come to conclude that the contractor somehow lost track of the project. He is thinking about calling the company to ask for a final invoice so that he can settle up, but business has been really slow over the last year or so, and it hasn't been easy to pay all of the bills as it is.…Ben London owns and operates Fantastic Footage, a film-editing company in Los Angeles that does contract work mostly for production companies in Hollywood. Not long ago, a local landscaping business completed nearly $8,500 worth of work around London's offices. While the initial bid seemed a little high for the amount of work that was actually done, there is no question that the work completed was of high quality, and London finally feels comfortable inviting potential clients to meet him at his office to discuss possible deals. However, because of an apparent oversight, the landscaping contractor never submitted a bill. It's been more than 15 months since the completion of the project, and London has come to conclude that the contractor somehow lost track of the project. He is thinking about calling the company to ask for a final invoice so that he can settle up, but business has been really slow over the last year or so, and it hasn't been easy to pay all of the bills as it is.…
- Explain why the first question a person should ask when getting ready to analyze a contract problem is, “is this alleged contract a contract for the sale of a good?”OPSM Opticians Ltd is a producer of fashion eyewear. The audit report for the year ended 30June 20X9 was signed on 5 August 20X9 and along with the financial report was mailed toshareholders on 10 August.Consider the following independent events. Assume that each event is material.I. On 5 July, OPSM Opticians entered into a new contract to supply eyewears to JDS, a newmajor department store. The contract was similar in nature to other contracts previouslynegotiated. II. OPSM Opticians has invested significant funds in developing a new type of unbreakablesunglass lens. On 8 July, OPSM Opticians applied for a patent for the lens, only to discoverthat a competitor had lodged a similar application on 20 June. The granting of TrendyAccessories’ application is now in serious doubt. III. Internal audit has uncovered a major fraud at one of OPSM Opticians branches. The fraudwas perpetrated by two senior staff, acting in collusion over a number of years. Theinternal auditors released their…Following a tendering process your firm has recently been appointed external auditor of Dazzle Ltd (Dazzle) for the year ending 31 July 20X1. The audit engagement letter is still to be signed. The previous auditor did not seek reappointment. Your firm has also been invited to provide tax planning and compliance work for the company. All of the shares of Dazzle are owned by two sisters: Ruby and Amber Dazzle. They are the only directors and spend on average three days a week managing Dazzle as they have other business interests. The company employs a full-time qualified accountant but does not have a Finance Director. Dazzle manufactures and sells high quality mirrors and light fittings, which are produced in the company’s workshop, in the North East of England. At peak times the company uses subcontractors to help with the manufacture of light fittings as they lack sufficient staff in this area. Due to changes in working practices as a result of covid-19 fewer people are permitted in…
- What is a pre-bid subtrade proposal, and of what benefit is it to the contractor’s estimator?1) There are two types of relationships, name them? And give some examples? 2) All contracts should be made in writing (True or False) (Justify with example or explanation)When Callifornia based Dalton & Dalton(D&D) was contracted by a large conglomerate in Taiwan, the president of D& D was quiet surprised. For 2 years, D&D had been looking for a oversees conglomerate that would be interested I building & selling its high-tech medical equipment under the licensingAgreement. A) The Taiwanese conglomerate has proposed to D & D that the two companies enter into a jointventure type of licensingagreement. The way in which the business deal will work if the following: The Taiwanese will setup manufacturingfacilities and create a marketing group to sale D&D high-tech medical equipment. B) D & D will train 25 manufacturing and 25 sales people from the conglomerate so that the later understands how to make and sell this equipment. This training will take place in the states. C) D&D will have the right to send people to the manufacturing facility to ensure that the equipment is built according to the specifications and will…
- 1A.EXAMINE THE NEED FOR COMPETITIVE DIALOGUE IN A PUBLIC PRIVATE PARTNERSHIP B-DISCUSS THE CIRCUMUSTANCE UNDER WHICH A CONTRACTING AUTHORITY MAY DISQUALIFY A BIDDER FROM PARTICIPATING IN A BIDDING PROCESSC&D Services contracts with Ace Concessions, Inc. to provide service for Ace’s vending machines. A few months later, C &D wants to sell out to Dean Vending Services, and assign its contract with Ace Concessions to Dean. Can C&D assign the contract without Ace Concessions consent? What will C&D’s risk be in the assignment?Generally, Contractors submit Tenders based on the Instructions to Tender (ITT) for the Client’s consideration and acceptance. In the same manner, shoppers go to supermarkets to shop. A shopper picks a double fridge on display. The price tag on the television is GHS 15,400.00. He walks to the counter and requests for a discount thereafter makes payment. i. Explains what constitutes offer in the scenario. ii. Explains what constitutes acceptance in the scenario. iii. Discuss when a Contract is formed between the parties?