If Suppliers Are Not Forthcoming with Labor and Material Cost

question 21

True/False

If suppliers are not forthcoming with labor and material cost data, cost models can be developed to improve the buyer's negotiating position using material/labor ratios available from industry databases.

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Definitions:

Frustrating Event

An unforeseen event that significantly changes the conditions of a contract, making it impossible to fulfill and potentially voiding the agreement.

Contract Frustration

A legal doctrine that allows a contract to be discharged when an unforeseen event renders contractual obligations impossible, or fundamentally changes the principle purpose of the contract.

Force Majeure Clause

A contract provision that frees parties from liability or obligation when an extraordinary event or circumstance beyond their control occurs.

Hail

Frozen precipitation in the form of balls or irregular lumps of ice, often occurring during strong thunderstorms.