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When entering into a contract , the objective of the buyer is to?

 

A. maximize his degree of risks while decreasing profit potential.

 B. place on the seller the maximum performance risk while maintaining a degree of incentive for efficient and economical performance.

C. ensure that the seller is unable to determine his exart requirements.

D. All of the above.

 

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Question added by Muhammad Farooq , QA-QC MANAGER , AL Bawani contracting co.
Date Posted: 2016/09/30
Muhammad Farooq
by Muhammad Farooq , QA-QC MANAGER , AL Bawani contracting co.

B. place on the seller the maximum performance risk while maintaining a degree of incentive for efficient and economical performance.

Krishna   KHASANIS  PMP
by Krishna KHASANIS PMP , Project Manager-Electrical , Larsen & Toubro Ltd, P T & D (International)

Thanks for the invite.

Of course it is option B. It has to be B only.

Md Fazlur Rahman
by Md Fazlur Rahman , Procurement Specialist , Engineering and Planning Consultants Ltd

The Option B is best choice as the Buyer would like to get the best performance from seller and  having good performance, the buyer would like reward the seller through future contracts/works.

.................... D my answer...............

 ( A , B , C ) BY %

A % = 60

B % = 70

C % = 80

..... D % = 210/300 = 70 ............ Thank you

Thanks for invite -

With the choice - B *

Ghulam Farid
by Ghulam Farid , Contracts Officer , Abu Dhabi Company for Onshore Petroleum Operations (ADCO)

Agree with Crishna answer. Option B suits best here

Sattar Abdulkarim  Mohamed
by Sattar Abdulkarim Mohamed , Country Sales Director , Ideal Technical Solutions

Thank for your invitation. Option B. to place on the seller the maximum performance risk ------- .

Imran Ahmed
by Imran Ahmed , Manager-Planning & Delay Analyst , Nesma United Industries (NUI) Saudi Arabia

Sure Option-B place on the seller the maximum performance risk while maintaining a degree of incentive for efficient and economical performance........................................................

AHMED HASAN ALAMODI
by AHMED HASAN ALAMODI , Sales And Marketing Executive , Canadian Management Consultants

In negotiating a contract, your first objective is to procure the exact products and services needed by your company under price and delivery terms that meet its volume, quality, delivery time-frame, cash flow and pricing requirements. Achieving this objective requires thorough research into your company's purchasing history, including rate of consumption, pricing, payment and delivery terms. Going into a contract negotiation not fully prepared with this information will put you at a negotiating disadvantage and potentially result in supply chain delays or overages.

option (B) is the correct answer

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