Practice Test Geeks(ASO) Armed Security Officer Certification Practice Test
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Contract Types & Administration Flashcards

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Read the first 7 Contract Types & Administration flashcards as text

  1. A security contract clause states the client may terminate services with 30 days written notice. This is known as a:

    Answer: Termination for convenience clause

    A termination for convenience clause allows either party to end the contract with proper notice without citing a breach.

  2. Which contract type places the greatest financial risk on the security contractor?

    Answer: Fixed-price (lump sum) contract

    In a fixed-price contract, the contractor bears all cost overruns, so if expenses exceed the bid, profit margins shrink or losses occur.

  3. A security officer discovers a contract amendment was verbally agreed upon by management but never signed. What is the legal status of that amendment?

    Answer: Unenforceable if the original contract requires written modifications

    Most contracts include a clause requiring that all amendments be in writing and signed to be binding.

  4. The section of a security services contract that lists specific duties, patrol schedules, and post orders is typically called the:

    Answer: Statement of Work (SOW)

    The Statement of Work details exactly what services the contractor must perform, including schedules and post orders.

  5. A client withholds payment claiming the security company breached the contract. The security company disagrees. The next appropriate step per most contract terms is:

    Answer: Initiate the dispute resolution or arbitration process outlined in the contract

    Most contracts include a dispute resolution mechanism — such as mediation or arbitration — that must be used before litigation.

  6. What does a 'hold harmless' agreement in a security contract primarily do?

    Answer: Shifts liability from one party to another for certain claims

    A hold harmless clause protects one party from legal liability for injuries or damages caused by the other party's actions.

  7. A security services contract specifies a 'per-post' pricing structure. This is an example of a:

    Answer: Unit-price contract

    Unit-price contracts set a rate for each defined unit of service (e.g., per post, per hour, per patrol), and the total cost varies with usage.