Ace the CPCM Challenge 2025 – Unlock Your Contract Management Superpowers!

Question: 1 / 515

What term refers to a phrase that activates or suspends a condition in terms and conditions?

Requirement

Condition

The correct choice pertains to the understanding of contract language, specifically regarding how various components of a contract relate to conditions that affect the agreement's enforceability or applicability. In the context of contracts, a condition refers to a specific clause that activates or suspends the obligations or rights outlined in the contract.

When a condition is met, it may trigger certain actions or outcomes specified in the agreement, while if it is not met, it can suspend or negate those obligations. This highlights the crucial role that conditions play in determining the execution of the contract's provisions.

For example, in a contract for a construction project, a condition could state that payments will only be released once certain milestones are achieved. If these conditions are satisfied, the contractual obligations proceed; if not, they may be suspended or terminated.

The other options do not accurately capture this concept—requirements generally refer to obligations that must be fulfilled, termination indicates the end of a contract, and qualitative describes characteristics or attributes rather than conditional phrases in terms. Understanding the role of conditions in contract management is essential for ensuring compliance and managing contractual obligations effectively.

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Termination

Qualitative

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