Certified Professional Public Buyer (CPPB) Practice Test

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What occurs due to nondisclosure of important information?

A successful performance completion.
Constructive change will be held to have occurred.
Increased trust between parties.
A request for renegotiation.

The correct answer is: Constructive change will be held to have occurred.

The nondisclosure of important information can lead to a constructive change being recognized. This occurs because when one party fails to disclose relevant information, it can fundamentally alter the conditions under which an agreement was made or is being executed. For instance, if crucial data was withheld that affects the scope or cost of a project, the other party may be entitled to adjustments or changes to the contract. This situation often leads to the need for re-evaluation of the terms agreed upon, as the undisclosed information impacts performance expectations and contractual obligations. Constructive change refers to modifications that arise from circumstances that were not previously accounted for in the agreement, and nondisclosure can create an environment where such changes become necessary to maintain fairness in the contractual relationship. While there are other possible outcomes related to nondisclosure, the specific recognition of constructive change captures the legal and operational ramifications of withholding important information, emphasizing the need to address and rectify the impact such nondisclosure can cause in contract performance.