Contract Fundamentals
What is the primary purpose of a contract in a community association setting?
A. To set construction schedules
B. To protect volunteers from litigation
C. To shift liability and outline compensation for services
D. To avoid getting bids
What is C. To shift liability and outline compensation for services?
Under NRS 116.31086, how many bids must an association solicit for projects exceeding a certain threshold?
A. Two
B. Three
C. Four
D. Five
What is B. Three?
Which of the following is a contract type commonly used in a community association?
A. Pest control
B. Landscaping
C. Paper shredding
D. All of the above
What is D, All of the above?
Which of the following helps limit legal exposure in a contract dispute?
A. Open-ended warranties
B. No termination clause
C. Mandatory mediation provisions
D. Missing start dates
What is C. Mandatory mediation provisions?
Which of the following is not considered a key contract provision?
A. Indemnity provision
B. Insurance provision
C. Inspection clause
D. Limitation of liability
What is C. Inspection clause?
In a community of fewer than 1,000 units, a project must meet what threshold to require competitive bidding?
A. $25,000 or more
B. 5% of reserve funds
C. 3% or more of the annual budget
D. Any amount over $10,000
What is C. 3% or more of the annual budget?
Who should be writing the technical specifications for the scope of work?
A. Board president
B. Community manager
C. Licensed professional or subject matter expert
D. Association attorney
What is C. Licensed professional or subject matter expert?
What should be referenced and attached to the final contract?
A. Minutes from the last board meeting
B. Management resume
C. RFP specifications
D. Volunteer agreement
What is C. RFP specifications?
Which three elements are essential to forming a valid contract?
A. Offer, acceptance, consideration
B. Bid, license, notarization
C. Signature, money, witnesses
D. Proposal, insurance, approval
What is A. Offer, acceptance, consideration?
According to NRS 116.3115(6), an association may assess repair costs against a unit if damage is caused by:
A. An act of God
B. The manager
C. Willful misconduct or gross negligence of a unit’s occupant
D. Construction defects
What is C. Willful misconduct or gross negligence of a unit’s occupant?
Which of the following is true about construction trash staging?
A. It must be removed daily by law
B. It should be addressed in the contract
C. It’s the board’s responsibility
D. It is usually not a concern
What is B. It should be addressed in the contract?
How should a change order typically be handled?
A. By a verbal agreement on-site
B. Through an addendum with board approval
C. Automatically by the vendor
D. Through informal emails
What is B. Through an addendum with board approval?
What is typically not covered in a community association contract?
A. Work specifications
B. Employee parking details
C. Volunteer training guides
D. Liquidated damages
What is C. Volunteer training guides?
When must bids be opened and read aloud?
A. Immediately upon receipt
B. Privately by the manager
C. At a meeting of the executive board
D. During the annual board election
What is C. At a meeting of the executive board?
Which contract type might include clauses for fire inspections and maintenance?
A. Insurance policy
B. Roofing
C. Fire protection systems
D. Graffiti removal
What is C. Fire protection systems?
What is a "material breach" of contract?
A. A minor miscommunication
B. Failure to provide a receipt
C. A significant failure to perform contractual obligations
D. A misunderstanding over office hours
What is C. A significant failure to perform contractual obligations?
Which contract component protects one party from financial loss due to another’s actions?
A. Express warranty
B. Indemnity clause
C. Waiver of subrogation
D. Termination clause
What is B. Indemnity clause?
Which statute addresses express warranties in Nevada’s CIC laws?
A. NRS 116.3115
B. NRS 116.4113
C. NRS 116.31186
D. NRS 116.4116
What is B. NRS 116.4113?
What professional service may be contracted for financial oversight?
A. Arborist
B. CPA
C. Landscape architect
D. Pool technician
What is B. CPA?
If a vendor transfers their contract to another company without approval, this is called:
A. Mediation
B. Assignment of contract
C. Due diligence
D. Subrogation
What is B. Assignment of contract?