3/30/25, 9:27 DBIA - Contracts and Risk Management |
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DBIA - CONTRACTS AND RISK MANAGEMENT EXAM QUESTIONS AND
ANSWERS WITH COMPLETE SOLUTIONS VERIFIED LATEST UPDATE
-Offer
-Acceptance
Requirements for a valid contract -Consideration
-Capacity
-Authority
-Austin told Trident that they would come back to them and use them if they won.
Trident v. Austin (2003) -Austin did win, but did not go back to Trident
-Trident could've offered a backup to their $5.2M.
an equitable doctrine that prevents the withdrawal of a promise by a promisor if it
Promissory Estoppel and Detrimental
will adversely affect a promisee who has adjusted his or her position in justifiable
Reliance
reliance on the promise
PTG made repeated assurances that MC would be part of the team (promises).
Metroplexcore v. Parsons Transportation
Even the owner expected MC to be on the team. - Example of Promissory
Group (2014)
Estoppel
Expectation Damages Award what was reasonably expected from the contract
When expectation damages not available, award what party would have had if
Rescission Damages
contract had not existed
If contract's subject is unique, a court may order
Specific Performance and Injunctive
that the breaching party perform its obligations under that contract (specific
Relief
performance) or stop doing something (injunction)
Quantum Meruit Award of a reasonable sum of money (i.e., "what the claimant deserved")
Damages cannot be speculative, and must be proven to a "reasonable" degree of
Key Principles of Contract Damages
certainty.
"Not withstanding anything herein to the contrary (except as set forth in section
10.5.2 below), neither Design-Builder nor Owner shall be liable to the other for
Consequential Damages Section 10.5.1,
any consequential losses or damages, whether arising in contract, warranty, tort
DBIA Document 535
(including negligence), strict liability or otherwise, including but not limited to
losses of use, profits, business, reputation or financing."
Betterment Theory Owner cannot be put in a better position than if the breach hadn't occurred.
-Defective plans and specs (Spearin)
-Constructive changes
Liability Issues -Differing site conditions
-Schedule-related issues
-Joint and several liability
Owner causes performance of work beyond scope of contract but does not
recognize contractor's entitlement to a change order.
▪ Defective specifications (Spearin)
Constructive Changes ▪ Disputes over contract interpretation
▪ Superior knowledge
▪ Breach of implied duties of good faith, fair dealing, and cooperation
▪ Constructive acceleration
Course of Performance what the parties do during the performance of this contract
Course of Conduct what the parties do during the performance of other similar contracts
Terms of Art the use of a word in a specific industry
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AM
DBIA - CONTRACTS AND RISK MANAGEMENT EXAM QUESTIONS AND
ANSWERS WITH COMPLETE SOLUTIONS VERIFIED LATEST UPDATE
-Offer
-Acceptance
Requirements for a valid contract -Consideration
-Capacity
-Authority
-Austin told Trident that they would come back to them and use them if they won.
Trident v. Austin (2003) -Austin did win, but did not go back to Trident
-Trident could've offered a backup to their $5.2M.
an equitable doctrine that prevents the withdrawal of a promise by a promisor if it
Promissory Estoppel and Detrimental
will adversely affect a promisee who has adjusted his or her position in justifiable
Reliance
reliance on the promise
PTG made repeated assurances that MC would be part of the team (promises).
Metroplexcore v. Parsons Transportation
Even the owner expected MC to be on the team. - Example of Promissory
Group (2014)
Estoppel
Expectation Damages Award what was reasonably expected from the contract
When expectation damages not available, award what party would have had if
Rescission Damages
contract had not existed
If contract's subject is unique, a court may order
Specific Performance and Injunctive
that the breaching party perform its obligations under that contract (specific
Relief
performance) or stop doing something (injunction)
Quantum Meruit Award of a reasonable sum of money (i.e., "what the claimant deserved")
Damages cannot be speculative, and must be proven to a "reasonable" degree of
Key Principles of Contract Damages
certainty.
"Not withstanding anything herein to the contrary (except as set forth in section
10.5.2 below), neither Design-Builder nor Owner shall be liable to the other for
Consequential Damages Section 10.5.1,
any consequential losses or damages, whether arising in contract, warranty, tort
DBIA Document 535
(including negligence), strict liability or otherwise, including but not limited to
losses of use, profits, business, reputation or financing."
Betterment Theory Owner cannot be put in a better position than if the breach hadn't occurred.
-Defective plans and specs (Spearin)
-Constructive changes
Liability Issues -Differing site conditions
-Schedule-related issues
-Joint and several liability
Owner causes performance of work beyond scope of contract but does not
recognize contractor's entitlement to a change order.
▪ Defective specifications (Spearin)
Constructive Changes ▪ Disputes over contract interpretation
▪ Superior knowledge
▪ Breach of implied duties of good faith, fair dealing, and cooperation
▪ Constructive acceleration
Course of Performance what the parties do during the performance of this contract
Course of Conduct what the parties do during the performance of other similar contracts
Terms of Art the use of a word in a specific industry
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