Construction Law and Contracts Final Exam
Newest 2026 Questions and Correct Detailed
Answers Already Graded A+
True or False: When reviewing a contract, you need only be concerned with what
is written in the document - CORRECT ANSWER-False
Differing site condition could be - CORRECT ANSWER-Underground storage
tanks containing hazardous materials
True or False: Liability refers to being held responsible for something at law, such
as an obligation that must be satisfied at the expense of the liable party -
CORRECT ANSWER-True
True or False: An owner can avoid liability for misinformation provided to a
contractor by explicitly disclaiming liability in the contract - CORRECT
ANSWER-True
The Spearin Doctrine - CORRECT ANSWER-The idea that the contractor has the
right to rely upon the accuracy of the plans and specs provided by the owner
,A Cardinal Change - CORRECT ANSWER-A major undertaking, substantially
different from anything originally contemplated in the contract
A Change Clause - CORRECT ANSWER-1. Requires the contractor to proceed
with the changed scope of work in good faith that the owner will not withhold
approval of estimated increases in cost or schedule without good cause
2. Provides that the owner must pay the contractor for all approved changes
3. Allows the owner to change the contractors scope of work
True or False: A Construction Change Directive requires the contractor to agree to
a price for the changed scope of work before proceeding to construct it -
CORRECT ANSWER-False
True or False: Liquidated Damages are intended to be a punishment for
contractor for missing the contracted for completion date - CORRECT
ANSWER-False
True or False: If the contract does not specify that "time is of the essence" the
contractual date of project completion will be construed to be within "a
reasonable time" as determined by a jury - CORRECT ANSWER-True
, True or False: Courts will not enforce a contract if consideration is unbalanced (if
one side has made a bad deal) - CORRECT ANSWER-False
State legislatures are what type of law - CORRECT ANSWER-Statutes
Local governments are what type of law - CORRECT ANSWER-Ordinances
Regulatory agencies are what type of law - CORRECT ANSWER-Regulations
Courts are what type of law - CORRECT ANSWER-Common law
Expectation Damages - CORRECT ANSWER-A payment of the cost of work plus
the profit that the wronged party expected to make on the contract
Specific Performance - CORRECT ANSWER-A court order requiring a party to
do something
Injunction - CORRECT ANSWER-A court order prohibiting a party from doing
something
Newest 2026 Questions and Correct Detailed
Answers Already Graded A+
True or False: When reviewing a contract, you need only be concerned with what
is written in the document - CORRECT ANSWER-False
Differing site condition could be - CORRECT ANSWER-Underground storage
tanks containing hazardous materials
True or False: Liability refers to being held responsible for something at law, such
as an obligation that must be satisfied at the expense of the liable party -
CORRECT ANSWER-True
True or False: An owner can avoid liability for misinformation provided to a
contractor by explicitly disclaiming liability in the contract - CORRECT
ANSWER-True
The Spearin Doctrine - CORRECT ANSWER-The idea that the contractor has the
right to rely upon the accuracy of the plans and specs provided by the owner
,A Cardinal Change - CORRECT ANSWER-A major undertaking, substantially
different from anything originally contemplated in the contract
A Change Clause - CORRECT ANSWER-1. Requires the contractor to proceed
with the changed scope of work in good faith that the owner will not withhold
approval of estimated increases in cost or schedule without good cause
2. Provides that the owner must pay the contractor for all approved changes
3. Allows the owner to change the contractors scope of work
True or False: A Construction Change Directive requires the contractor to agree to
a price for the changed scope of work before proceeding to construct it -
CORRECT ANSWER-False
True or False: Liquidated Damages are intended to be a punishment for
contractor for missing the contracted for completion date - CORRECT
ANSWER-False
True or False: If the contract does not specify that "time is of the essence" the
contractual date of project completion will be construed to be within "a
reasonable time" as determined by a jury - CORRECT ANSWER-True
, True or False: Courts will not enforce a contract if consideration is unbalanced (if
one side has made a bad deal) - CORRECT ANSWER-False
State legislatures are what type of law - CORRECT ANSWER-Statutes
Local governments are what type of law - CORRECT ANSWER-Ordinances
Regulatory agencies are what type of law - CORRECT ANSWER-Regulations
Courts are what type of law - CORRECT ANSWER-Common law
Expectation Damages - CORRECT ANSWER-A payment of the cost of work plus
the profit that the wronged party expected to make on the contract
Specific Performance - CORRECT ANSWER-A court order requiring a party to
do something
Injunction - CORRECT ANSWER-A court order prohibiting a party from doing
something
