Mr. Wilson has contracted with James Franco to write a movie script. Franco will be paid $50,000

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Question:

Mr. Wilson has contracted with James Franco to write a movie script. Franco will be paid $50,000 for the movie script and will also be paid a bonus of $10,000 if he can convince Will Farrell to star in the movie. This is an example of which type of contract?

a. Fixed Price

b. Fixed Price Incentive Fee

c. Time and Materials

d. Cost Plus Fixed Fee

For project efficiency, it is best to wait until the end of the project to inform the vendor that there are problems.

a. True

b. False

When a client makes a claim with there is no contractual basis, but states that the organization has a moral obligation to compensate for an unexpected event, this is called:

a. Default claim

b. Dispute resolution

c. Ex-gratia claim

d. Termination claim