Preview Questions Contract Manager | Role Specific Skill

Question 1: What is the key consideration when including a "termination for convenience" clause in FMCG contracts?

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Mandating a specific cause for termination in all circumstances

Ensuring that the party terminating the contract can do so without cause, but with proper notice

Limiting the termination rights to only certain stakeholders

Ensuring that the termination process is without financial consequence

Question 2: When might a "termination for convenience" clause in an FMCG contract be most useful in managing disputes?

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It allows either party to terminate the contract without cause, minimizing long-term disputes.

It automatically allows the vendor to end the contract without any consequences.

It requires a lengthy legal process to prove cause before termination.

It excludes all vendors from terminating contracts for any reason.

Question 3: In the context of FMCG contracts, what is the significance of an "escalation clause"?

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It defines the delivery schedules for product shipments

It outlines a hierarchical process for addressing disputes before involving legal action

It sets financial penalties for non-performance

It establishes the jurisdiction for legal proceedings

Question 4: In an FMCG contract, why is it important to include a "compromise agreement" in a dispute resolution process?

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It allows the buyer to unilaterally decide the outcome of the dispute.

It prevents any negotiation, requiring immediate legal action.

It ensures that both parties agree to settle the dispute in a way that avoids litigation and maintains the business relationship.

It encourages one party to take over the entire contract without compromise.

Question 5: How does an FMCG contract ensure compliance with anti-bribery and corruption laws?

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By excluding compliance clauses to simplify negotiations.

By including explicit anti-bribery clauses that prohibit corrupt practices and outline penalties for violations.

By assuming the other party follows all legal regulations.

By allowing the parties to negotiate bribery clauses as needed.

Question 6: What should be included in a confidentiality clause to ensure legal compliance in FMCG contracts?

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Clear definitions of confidential information, obligations to protect it, and the duration of confidentiality.

No reference to confidentiality, relying on trust.

Focus on limiting information sharing only within the company.

A vague description of what constitutes confidential information.