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NEW QUESTION # 47
A building owner and general contractor sign a contract to build an addition to a retail shopping center. Both parties agree to include a provision that specifies an amount of money to be paid by one party that is in material breach to the other party. This provision is often used when the sum of damages is difficult to predict in advance of contract execution. What is this provision called?
Answer: A
Explanation:
Liquidated damagesare pre-determined amounts specified in a contract to be paid as compensation if one party breaches the agreement. They are commonly used when actual damages would be hard to quantify in advance, making them a proactive risk management tool in construction and service contracts.
NEW QUESTION # 48
A property manager is performing a risk assessment of a business continuity plan. What type of plan is a business continuity plan?
Answer: D
Explanation:
Abusiness continuity planis a type ofdisaster plandesigned to ensure that essential business functions can continue during and after a major disruption (such as a natural disaster or system failure). It focuses on minimizing downtime and maintaining operations.
NEW QUESTION # 49
A property manager is reviewing the annual operating budget for a commercial office building. The building's budget for energy costs is projected to be $200,000, but actual expenses for the year were $250,000. What action should the property manager take to address this overage?
Answer: A
NEW QUESTION # 50
A landlord owns an industrial property. Under the terms of the lease, the landlord is responsible for weekly waste removal. The tenant, a manufacturing company, depends on the reliability and consistency of routine waste removal. The landlord has failed to pay the waste hauler, and garbage has accumulated for several weeks, making it impossible for the tenant to conduct its business. The tenant is forced to vacate and move to another property. What is this called?
Answer: C
Explanation:
Constructive evictionoccurs when a landlord fails to provide essential services or conditions agreed upon in the lease-making the premises uninhabitable or unsuitable for business. As a result, the tenant is effectively forced to vacate. In this scenario, failure to remove waste rendered the property unusable for the tenant's operations, meeting the definition of constructive eviction.
NEW QUESTION # 51
A tenant has filed a claim against a property management company's architect, alleging financial loss suffered as a result of non-performance on a space design contract. Which of the following insurance policiesBEST protects the architect from this claim?
Answer: D
Explanation:
Professional liability insurance(also known as errors and omissions insurance) protects professionals like architects from claims of negligence, mistakes, or failure to perform services as promised in a contract. This makes it the best protection against claims related to professional work performance.
NEW QUESTION # 52
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