Software Development Inc. (SDI) develops and markets a range of business applications and pro It has its own product development resource but also uses external contractors where expertise is not available in-house. SDI is just about to start working with a small organisation called XNX Developers (XNX) on a highly secret new development currently known as Project Y. SDI and XNX have worked together successfully in the past. Ultimately, when the development is completed, SDI will pay XNX a one-off fee for exclusive and full ownership of Project Y. XNX is happy with this arrangement as it needs an injection of funds to support the development of its own product range and bank finance is not available. SDI and XNX have also reached an agreement on XNX's acceptance to compensate SDI for potential future liability on Project Y in respect of the development work it has undertaken. Based on the information provided, which of the following clauses will be a priority for SDI to include in the contract to address its specific needs? (4) 1. Intellectual property rights 2. Force majeure 3. Jurisdiction 4. Indemnity Circle the right answer below a. 1 and 2 only b. 2 and 3 only c. 3 and 4 only d. 1 and 4 only 2 A fire at the depot of a transport company destroys its vehicle fleet. It is insured and so in time the vehicles can be replaced. However, in the short-term it cannot fulfil customer orders and so loses business. This loss of business is known as which of the following? (2) Circle the right answer below a. Business Interruption Loss b. Direct loss c. Positive loss d. Standard loss