1 for specific request mail
CNST 420 Exam 3 Questions and Correct Answers |
Latest Update
What is the Spearin doctrine?— Ans: Owner who furnishes design
specifications impliedly warrants they are adequate and buildable (Ch 16)
Spearin as a shield?— Ans: Defeats owner claim for defect caused by
owner's own defective specs (Ch 16)
Spearin as a sword?— Ans: Contractor can sue owner for extra
costs/delays caused by defective specs (Ch 16)
Assignment Expert
Two components of unconscionability defense?— Ans: (1) Procedural
(surprise, fine print) + (2) Substantive (shockingly one-sided) (Ch 16)
Guru01 - Stuvia
Three purposes of retainage?— Ans: (1) Security for correction of defects,
(2) fund for sub/supplier payment, (3) prevent overpayment (Ch 17)
Two situations for cardinal change?— Ans: (1) One-shot radical change,
2026
(2) aggregate of many changes that transform the project (Ch 18)
©
Watson Lumber strategy for small extras on small jobs?— Ans: Put a
contingency/allowance line item in original bid instead of formal COs (Ch
18)
Advantages of DSC clause?— Ans: Lower bids (no huge contingencies),
owner only pays if actual difference occurs (Ch 19)
Disadvantages of DSC clause?— Ans: Uncertain final price, higher admin
cost, disputes over "materially differs" (Ch 19)
Primary purpose of force majeure clause?— Ans: Excuse performance &
avoid breach when extraordinary events beyond control occur (Ch 20)
Common force majeure examples?— Ans: Acts of God, war, terrorism,
pandemic, strikes, gov't orders (Ch 20)
, 2 for specific request mail
Four elements of promissory estoppel (Drennan)?— Ans: (1) Clear offer,
(2) reasonable & foreseeable reliance, (3) actual & substantial reliance, (4)
injustice only avoided by enforcement (Ch 21)
Five Restatement §241 factors for material breach?— Ans: (1) Deprivation
of expected benefit, (2) adequacy of compensation, (3) forfeiture, (4)
likelihood of cure, (5) good faith (Ch 22)
Primary purpose of CGL insurance?— Ans: Third-party bodily injury &
property damage claims (including defense costs) (Ch 24-25)
Primary purpose of payment bond?— Ans: Guarantee subs & suppliers
Assignment Expert
get paid; protect owner from liens (required on public jobs) (Ch 24-25)
AIA A201 §14.1 - Contractor termination triggers?— Ans: Non-payment
Guru01 - Stuvia
>30 days, owner fails proof of financing, repeated interruptions >120
days/yr (Ch 22)
AIA A201 §14.2 - Owner termination for cause grounds?— Ans: Repeated
2026
failure workers/materials, non-payment subs, disregard laws, material
breach (Ch 22)
©
AIA §14.4 - Termination for convenience payment?— Ans: Work executed
+ termination expenses + fee if stated in contract (NO profit on
unperformed work) (Ch 22)
Pay-when-paid vs Pay-if-paid difference?— Ans: PWP = timing; PIP =
absolute condition (often unenforceable) (Ch 21)
Severin doctrine?— Ans: Prime cannot pass-through sub claim to owner if
prime has no liability to sub (Ch 21)
Economic loss doctrine?— Ans: No tort recovery for purely economic loss
when contract exists (Ch 21)
Subcontractor exception in CGL "your work" exclusion?— Ans: Defective
work by subs can still be covered under completed operations (Ch 24-25)
CNST 420 Exam 3 Questions and Correct Answers |
Latest Update
What is the Spearin doctrine?— Ans: Owner who furnishes design
specifications impliedly warrants they are adequate and buildable (Ch 16)
Spearin as a shield?— Ans: Defeats owner claim for defect caused by
owner's own defective specs (Ch 16)
Spearin as a sword?— Ans: Contractor can sue owner for extra
costs/delays caused by defective specs (Ch 16)
Assignment Expert
Two components of unconscionability defense?— Ans: (1) Procedural
(surprise, fine print) + (2) Substantive (shockingly one-sided) (Ch 16)
Guru01 - Stuvia
Three purposes of retainage?— Ans: (1) Security for correction of defects,
(2) fund for sub/supplier payment, (3) prevent overpayment (Ch 17)
Two situations for cardinal change?— Ans: (1) One-shot radical change,
2026
(2) aggregate of many changes that transform the project (Ch 18)
©
Watson Lumber strategy for small extras on small jobs?— Ans: Put a
contingency/allowance line item in original bid instead of formal COs (Ch
18)
Advantages of DSC clause?— Ans: Lower bids (no huge contingencies),
owner only pays if actual difference occurs (Ch 19)
Disadvantages of DSC clause?— Ans: Uncertain final price, higher admin
cost, disputes over "materially differs" (Ch 19)
Primary purpose of force majeure clause?— Ans: Excuse performance &
avoid breach when extraordinary events beyond control occur (Ch 20)
Common force majeure examples?— Ans: Acts of God, war, terrorism,
pandemic, strikes, gov't orders (Ch 20)
, 2 for specific request mail
Four elements of promissory estoppel (Drennan)?— Ans: (1) Clear offer,
(2) reasonable & foreseeable reliance, (3) actual & substantial reliance, (4)
injustice only avoided by enforcement (Ch 21)
Five Restatement §241 factors for material breach?— Ans: (1) Deprivation
of expected benefit, (2) adequacy of compensation, (3) forfeiture, (4)
likelihood of cure, (5) good faith (Ch 22)
Primary purpose of CGL insurance?— Ans: Third-party bodily injury &
property damage claims (including defense costs) (Ch 24-25)
Primary purpose of payment bond?— Ans: Guarantee subs & suppliers
Assignment Expert
get paid; protect owner from liens (required on public jobs) (Ch 24-25)
AIA A201 §14.1 - Contractor termination triggers?— Ans: Non-payment
Guru01 - Stuvia
>30 days, owner fails proof of financing, repeated interruptions >120
days/yr (Ch 22)
AIA A201 §14.2 - Owner termination for cause grounds?— Ans: Repeated
2026
failure workers/materials, non-payment subs, disregard laws, material
breach (Ch 22)
©
AIA §14.4 - Termination for convenience payment?— Ans: Work executed
+ termination expenses + fee if stated in contract (NO profit on
unperformed work) (Ch 22)
Pay-when-paid vs Pay-if-paid difference?— Ans: PWP = timing; PIP =
absolute condition (often unenforceable) (Ch 21)
Severin doctrine?— Ans: Prime cannot pass-through sub claim to owner if
prime has no liability to sub (Ch 21)
Economic loss doctrine?— Ans: No tort recovery for purely economic loss
when contract exists (Ch 21)
Subcontractor exception in CGL "your work" exclusion?— Ans: Defective
work by subs can still be covered under completed operations (Ch 24-25)
