CNST Law Final || very Flawless.
Condition Precedent correct answers an event or state of affairs that is required before something
else will occur. In contract law, a condition precedent is an event which must occur, unless its
non-occurrence is excused, before performance under a contract becomes due
Subrogation correct answers the assumption by a third party of another party's legal right to
collect a debt or damages. It is a legal doctrine whereby one person is entitled to enforce the
subsisting or revived rights of another for one's own benefit
IS THE THEORY BY WHICH THE INSURANCE COMPANY, AFTER PAYING ON A
CLAIM, CAN PURSUE THE RIGHTS OF THE INSURED AGAINST THE PARTY
RESPONSIBLE FOR THE DAMAGE
CGL Coverage correct answers COVER AGAINST NEGLIGENCE HARMING THIRD
PARTIES
DO NOT PROTECT THE INSURED FROM LOSSES IT DIRECTLY INCURS AND IT DOES
NOT COVER THE CONTRACTOR'S DEFECTIVE WORK, BECAUSE ONE SHOULD NOT
BE ABLE TO INSURE THEMSELVES AGAINST ONE'S OWN DEFECTIVE WORK.
PARTIES SHOULD EXAMINE THEIR CGL POLICY PRIOR TO LOSS
Typically OCCURRENCE based. An occurrence must happen during THE TERMS OF THE
POLICY to be covered. Occurrences may cause bodily injury or property damage
Builder's Risk correct answers DURING A CONSTRUCTION PROJECT, IF UNEXPECTED
EVENTS OCCUR THAT DAMAGE PROPERTY, THE CONTRACTOR WILL LIKELY
HAVE TO REBUILD THE DAMAGED PROPERTY. HOWEVER, THESE UNEXPECTED
EVENTS MUST BE A MATTER OF CHANCE, LIKE FIRE OR A STROM. THIS
PRINCIPLE WILL BE APPLIED THROUGH NO FAULT ON THE PART OF THE
CONTRACTOR MAY EXIST
Cloud on Title correct answers STATUTORY __ lien that secures payment for _LABOR __ or
__MATERIALS___supplied in improving, repairing, or maintaining real or personal property.
Also known as an artisan's lien, a construction lien or a laborer's lien (for labor, or a material
man's lien (for materials
Errors and Omissions Policy correct answers Professional liability insurance (PLI), also called
professional indemnity insurance (PII) but more commonly known as _________ in the US, is a
form of liability insurance which helps protect professional advice- and service-providing
individuals and companies from bearing the full cost of defending against a negligence claim
made by a client, and damages awarded in such a civil lawsuit
Negligence Per Se correct answers when a tort is committed against group of people that a
statute or regulation intends to protect.
,8 corners rule correct answers compares the allegations of the plaintiff's position with the
language of the insurance policy
According to this rule, a liability insurer's duty to defend its insured is assessed by reviewing the
claims asserted in the plaintiff's complaint, without reference to matters outside the four corners
of the complaint plus the four corners of the policy.
a test if insurance company has to provide a defense or the insureee. 1) is the insurance policy
and plaintiff's lawsuit for what's being alleged and policy and if its fits, then I owe them duty to
defend. Just because its owed, it doesn't mean they'll cover for what happens in the lawsuit
Respondeat Superior correct answers is a doctrine that a party is responsible for (has vicarious
liability for) acts of their agents.
Fair Notice correct answers Proper notice adequate in law whose nature, purpose, and subject
matter can be ascertained by a person of reasonable competence and knowledge.
Stowers Doctrine correct answers a tool often used by Plaintiff's lawyers in Texas to put pressure
on insurance companies to either pay their policy limits to settle a claim or risk exposing their
insureds and themselves to liability for a verdict in excess of the coverage amount
Economic Loss correct answers Damages for ________ are not recoverable based on tort theory
when unaccompanied by physical property damage or personal injury
this judicially crafted doctrine prohibits tort recovery for ______, generally defined as a loss
resulting from product failure when there is no personal injury or damage to "other property"
Sovereign Immunity correct answers a legal doctrine by which the sovereign or state cannot
commit a legal wrong and is immune from civil suit or criminal prosecution, strictly speaking in
modern texts in its own courts
protects the state from lawsuits and damages. It encompasses the two separate principles of
immunity: Immunity from suit and immunity from liability
Miller Act correct answers requires prime contractors on some government construction
contracts to post bonds guaranteeing both the performance of their contractual duties and the
payment of their subcontractors and material suppliers
Joint Check agreement correct answers an agreement between three parties in which one party
agrees to make payment to another by issuing checks made payable to two parties
might involve a prime contractor, a subcontractor, and a supplier. As a condition of supplying
materials for a project, the supplier may require the prime contractor to issue its payments to the
subcontractor by way of checks made jointly payable to the subcontractor and the supplier. This
provides the supplier more assurance that payments issued by the prime contractor are received
by the supplier
, 3 bodies of law that set out how Gov. Entities bid work and govern contracts correct answers 1)
Texas Government Code
2)Texas Local Government Code (Municipal and County)
3)Texas Education Code
In the competitive bidding delivery method, a governmental entity chooses an architect and an
engineer to design and develop a project. The entity then solicits lump sum bids and selects a
contractor based on the ________ correct answers lowest bid.
COMPETITIVE SEALED PROPOSALS ARE OPENED ______ AND WITHIN ________
AFTER THE OPENING, THE PROPOSALS ARE RANKED BASED UPON ______ correct
answers Publicly; 45 days; Best Value
CMAR PROPOSALS ARE RECEIVED AND _______ OPENED WITHIN ______ AFTER
THE OPENING, THE PROPOSALS ARE RANKED. correct answers Publicly; 45 days
Prompt Payment time periods correct answers 10 DAYS FOR STATE AND GOV
7 FOR PRIVATE AND FEDERAL WORK
If payment is late, contractor is permitted to suspend performance
Retainage correct answers part of the payments under a public works contract that are withheld
until the contractor's fulfillment of the contract. Retainage greater than 5% must be deposited
into an interest earning account, which interest must be paid to the contractor. Turned over 30
days after completion
Worker's Compensation Insurance correct answers is required of general contractors and all
subcontractors on a public works project. In return for the _______, employers are protected
from suits initiated by injured employees
Bonafide Dispute correct answers means a good faith assertion of a right, claim, billing
adjustment or credit which Customer reasonably believes it is entitled to under the Agreement.
Malfeasance correct answers wrongdoing, especially by a public official.
Elements of negligence correct answers Duty
Breach
Causation
Damages
Owners have duty to advise or warn workers of _________ they are aware of. In most instances,
the owner will not be liable for injuries, unless the harm occurs due to a _________. correct
answers Dangerous Conditions; Failure to warn
Condition Precedent correct answers an event or state of affairs that is required before something
else will occur. In contract law, a condition precedent is an event which must occur, unless its
non-occurrence is excused, before performance under a contract becomes due
Subrogation correct answers the assumption by a third party of another party's legal right to
collect a debt or damages. It is a legal doctrine whereby one person is entitled to enforce the
subsisting or revived rights of another for one's own benefit
IS THE THEORY BY WHICH THE INSURANCE COMPANY, AFTER PAYING ON A
CLAIM, CAN PURSUE THE RIGHTS OF THE INSURED AGAINST THE PARTY
RESPONSIBLE FOR THE DAMAGE
CGL Coverage correct answers COVER AGAINST NEGLIGENCE HARMING THIRD
PARTIES
DO NOT PROTECT THE INSURED FROM LOSSES IT DIRECTLY INCURS AND IT DOES
NOT COVER THE CONTRACTOR'S DEFECTIVE WORK, BECAUSE ONE SHOULD NOT
BE ABLE TO INSURE THEMSELVES AGAINST ONE'S OWN DEFECTIVE WORK.
PARTIES SHOULD EXAMINE THEIR CGL POLICY PRIOR TO LOSS
Typically OCCURRENCE based. An occurrence must happen during THE TERMS OF THE
POLICY to be covered. Occurrences may cause bodily injury or property damage
Builder's Risk correct answers DURING A CONSTRUCTION PROJECT, IF UNEXPECTED
EVENTS OCCUR THAT DAMAGE PROPERTY, THE CONTRACTOR WILL LIKELY
HAVE TO REBUILD THE DAMAGED PROPERTY. HOWEVER, THESE UNEXPECTED
EVENTS MUST BE A MATTER OF CHANCE, LIKE FIRE OR A STROM. THIS
PRINCIPLE WILL BE APPLIED THROUGH NO FAULT ON THE PART OF THE
CONTRACTOR MAY EXIST
Cloud on Title correct answers STATUTORY __ lien that secures payment for _LABOR __ or
__MATERIALS___supplied in improving, repairing, or maintaining real or personal property.
Also known as an artisan's lien, a construction lien or a laborer's lien (for labor, or a material
man's lien (for materials
Errors and Omissions Policy correct answers Professional liability insurance (PLI), also called
professional indemnity insurance (PII) but more commonly known as _________ in the US, is a
form of liability insurance which helps protect professional advice- and service-providing
individuals and companies from bearing the full cost of defending against a negligence claim
made by a client, and damages awarded in such a civil lawsuit
Negligence Per Se correct answers when a tort is committed against group of people that a
statute or regulation intends to protect.
,8 corners rule correct answers compares the allegations of the plaintiff's position with the
language of the insurance policy
According to this rule, a liability insurer's duty to defend its insured is assessed by reviewing the
claims asserted in the plaintiff's complaint, without reference to matters outside the four corners
of the complaint plus the four corners of the policy.
a test if insurance company has to provide a defense or the insureee. 1) is the insurance policy
and plaintiff's lawsuit for what's being alleged and policy and if its fits, then I owe them duty to
defend. Just because its owed, it doesn't mean they'll cover for what happens in the lawsuit
Respondeat Superior correct answers is a doctrine that a party is responsible for (has vicarious
liability for) acts of their agents.
Fair Notice correct answers Proper notice adequate in law whose nature, purpose, and subject
matter can be ascertained by a person of reasonable competence and knowledge.
Stowers Doctrine correct answers a tool often used by Plaintiff's lawyers in Texas to put pressure
on insurance companies to either pay their policy limits to settle a claim or risk exposing their
insureds and themselves to liability for a verdict in excess of the coverage amount
Economic Loss correct answers Damages for ________ are not recoverable based on tort theory
when unaccompanied by physical property damage or personal injury
this judicially crafted doctrine prohibits tort recovery for ______, generally defined as a loss
resulting from product failure when there is no personal injury or damage to "other property"
Sovereign Immunity correct answers a legal doctrine by which the sovereign or state cannot
commit a legal wrong and is immune from civil suit or criminal prosecution, strictly speaking in
modern texts in its own courts
protects the state from lawsuits and damages. It encompasses the two separate principles of
immunity: Immunity from suit and immunity from liability
Miller Act correct answers requires prime contractors on some government construction
contracts to post bonds guaranteeing both the performance of their contractual duties and the
payment of their subcontractors and material suppliers
Joint Check agreement correct answers an agreement between three parties in which one party
agrees to make payment to another by issuing checks made payable to two parties
might involve a prime contractor, a subcontractor, and a supplier. As a condition of supplying
materials for a project, the supplier may require the prime contractor to issue its payments to the
subcontractor by way of checks made jointly payable to the subcontractor and the supplier. This
provides the supplier more assurance that payments issued by the prime contractor are received
by the supplier
, 3 bodies of law that set out how Gov. Entities bid work and govern contracts correct answers 1)
Texas Government Code
2)Texas Local Government Code (Municipal and County)
3)Texas Education Code
In the competitive bidding delivery method, a governmental entity chooses an architect and an
engineer to design and develop a project. The entity then solicits lump sum bids and selects a
contractor based on the ________ correct answers lowest bid.
COMPETITIVE SEALED PROPOSALS ARE OPENED ______ AND WITHIN ________
AFTER THE OPENING, THE PROPOSALS ARE RANKED BASED UPON ______ correct
answers Publicly; 45 days; Best Value
CMAR PROPOSALS ARE RECEIVED AND _______ OPENED WITHIN ______ AFTER
THE OPENING, THE PROPOSALS ARE RANKED. correct answers Publicly; 45 days
Prompt Payment time periods correct answers 10 DAYS FOR STATE AND GOV
7 FOR PRIVATE AND FEDERAL WORK
If payment is late, contractor is permitted to suspend performance
Retainage correct answers part of the payments under a public works contract that are withheld
until the contractor's fulfillment of the contract. Retainage greater than 5% must be deposited
into an interest earning account, which interest must be paid to the contractor. Turned over 30
days after completion
Worker's Compensation Insurance correct answers is required of general contractors and all
subcontractors on a public works project. In return for the _______, employers are protected
from suits initiated by injured employees
Bonafide Dispute correct answers means a good faith assertion of a right, claim, billing
adjustment or credit which Customer reasonably believes it is entitled to under the Agreement.
Malfeasance correct answers wrongdoing, especially by a public official.
Elements of negligence correct answers Duty
Breach
Causation
Damages
Owners have duty to advise or warn workers of _________ they are aware of. In most instances,
the owner will not be liable for injuries, unless the harm occurs due to a _________. correct
answers Dangerous Conditions; Failure to warn
