1. In a fixed-price contract, what is the primary risk for the seller? A) Delayed payment B) Scope creep C) Market volatility D) Cost overruns Answer: D) Cost overruns. Rationale: In a fixed-price contract, the seller bears the financial risk of cost overruns because they are obligated to deliver the project at a set price regardless of the actual costs incurred. 2. Which of the following is a key element to consider when negotiating a contract? A) The color of the contract paper B) The personal hobbies of the negotiating parties C) The governing law clause D) The font size used in the contract Answer: C) The governing law clause. Rationale: The governing law clause determines which jurisdiction's laws will be applied to interpret the contract, which is crucial in resolving any legal disputes that may arise. 3. What is the purpose of a 'force majeure' clause in a contract? A) To enforce strict deadlines B) To provide relief in case of unforeseeable events C) To allocate office space D) To define the dress code for meetings Answer: B) To provide relief in case of unforeseeable events. Rationale: A 'force majeure' clause frees both parties from liability or obligation when an extraordinary event or circumstance beyond their control prevents one or both parties from fulfilling the contract. 4. In contract negotiations, what does BATNA stand for? A) Best Alternative to a Negotiated Agreement B) Best Analysis of a New Agreement C) Basic Agreement Terms and Notices D) Binding Agreement Timetable Notice Answer: A) Best Alternative to a Negotiated Agreement. Rationale: BATNA refers to the best alternative that a party can take if the current negotiations fail and an agreement cannot be reached.