Professional Engineers of Ontario (PEO) Professional
Practice Exam (PPE)
Advertising - Answer Advertising must be honest, the coverage can only include the
work actually performed; it must acknowledge one's collaborators in the past work and
shall not exaggerate about the achievement. See also duty to warn.
Arbitration - Answer Dispute resolution process held out of court. Third-party
arbitrators hear the case from the parties involved before reaching a decision (usually
binding, unlike mediation under New York Convention)
Alternative Dispute Resolution (ADR)-Answer Disputes over a contract Keep the
disputes out of the court system by utilizing mediators or arbiters to work toward a
resolution. Pros: cheaper, flexible scheduling, etc.
Bid Shopping - Answer Bid shopping is a term describing the process whereby the
sub-bid of one subcontractor is disclosed in an attempt to negotiate with another
subcontractor to lower the price for a particular trade on a project. It occurs during the
bid/pricing stage, or subsequent to the award of a prime contract or both, unless the
bidding documents contain conditions that preclude this practice. Contra Contract A.
Breach of Contract (3 types) / Substantial Compliance - Answer Breach of Condition: an
obligation essential/vital to the contract (likely leading to a breach of contract).
Breach of Warranty: an obligation that is not essential to the contract and will not result
in discharge of the contract.
Breach of Contract: Contract is terminated and breach is actionable.
Substantial Compliance: There was a minor breach of condition that is remedied.
,Assessment of Damages for Contract / Tort - Answer Contract: Damages occasioned by
breach of contract or which both parties to the contract foresee or ought to foresee at
the time of entering into the contract. Parties have a duty to mitigate damages.
Tort: Damages to compensate victims of torts. Not punitive, that is criminal
proceedings.
Certificate of Authorization - Answer Mandatory for any engineer, partnership or
company offering engineering services to the public. Granted by the PEO, valid for 1
year renewable, and must indicate supervising engineer(s) licensed P. Eng. with +1 year
experience.
Common & Civil Law - Answer Common Law Legal system from England wherein the
laws are determined through mainly statute enacted by legislation and precedent
enacted by judicial rulings
Civil Law: Based on codes of behaviour expected by governing bodies. Used in Quebec.
Concurrent Liability - Answer Party is liable in both tort and contract. This is permissible
under Canadian law.
Concurrent Tortfeasors - Answer More than 1 person/party is responsible for tort
damages
Damages (Direct & Indirect) - Answer Consequential/Indirect damages: Damage arising
as a result of a breach of contract. e.g. loss profits, fines, etc. Recoverable if foressable
even if there is no actual physical injury or damage.
Direct Damages: result of negligence or breach of contract
Company A wins the tender by lowest bid and then breaches. The next lowest bidder,
, Company B, is then awarded the contract. The difference in the bids is direct, and the
administrative costs of re-awarding the contract is an indirect or consequential one.
Can an X-type engineer carry out Y-type engineering? -Answer yes if and only if he or
she is licensed, has appropriate CoA, and is competent in Y. Generally the third
condition fails to hold but where it does there is no problem.
Consideration - de facto meaning: Something of value that is exchanged for the
goods/services specified in the contract. If a "contract" does not have consideration, it
is promise and not a contract. (See gratuitous promise).
Contra Proferrentum - de facto meaning: If a wording of a contract is ambiguous, it will
be interpreted against the party that drafted that provision.
Contract A - The Right to an Answer When Alice bids out a contract and chooses a
bidder, there are really two contracts involved. The contract being bid out ("Contract
B") is preceded by an implicit "Contract A" governing the fairness of the tendering
process, fair inclusion, selection of lowest bid, etc. The implicit/default rules of Contract
A can be explicitly overruled by forming an actual contract for the tendering process
with explicit terms. [Ron Engineering]
Contract - Answer 5 conditions to be enforceable:
1) Offer and acceptance - Written or verbal
2) Mutual Intent - No duress, letter of intent helps
3) Consideration - Money, seal, or other
4) Capacity - 18+, mentally sound
5) Lawful
Contract Interpretation - Answer Contract interpretation is the function of courts when a
dispute about the contract arises. The current courts apply the strict approach where
the exact wording has precedence provided the contract is not unconscionable. In the
past, there was a more liberal approach which accounted for intent.
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