Contract Training
Provisions Scenario Explanation
“In case of a breach of this agreement by either party leading to litigation, the prevailing party will be entitled to attorney fees from the other party.” This answer is incorrect — The University cannot agree to pay another party’s attorney fees.
“The University agrees to purchase $1 million in malpractice insurance for each student who completes a practicum at St. Mary’s Hospital.” This answer is incorrect — The University rarely agrees to purchase insurance. Students who need coverage for a practicum need to purchase their own insurance.
“If the telephone tower is destroyed by a lightning strike, tornado, windstorm or hurricane, the obligations of both parties under this contract shall be extinguished.” This answer is correct — This is an “act of God” provision. The University may agree to such a provision and such a provision should definitely be included if the University would be unable to meet its contractual obligations under such circumstances.
“Any claim the University has based on an invoice must be brought within 6 months or the claim will be deemed to have been waived.” This answer is incorrect — The University cannot agree to a provision that limits the time during which a claim may be made.
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