Certified Professional Public Buyer (CPPB) Practice Test

Which term describes obligations that a contractor has not expressly stated in a contract?

1. Express warranties

2. Implied warranties

3. Contingent liabilities

4. Explicit commitments

The correct answer is: Implied warranties

The term that describes obligations a contractor has not expressly stated in a contract is "implied warranties." Implied warranties are those responsibilities or guarantees that are automatically included in a contract by law, even if the parties involved did not explicitly lay them out in the contract terms. These warranties generally relate to the quality and function of the goods or services being provided. For instance, in a construction contract, there may be an implied warranty that the work will be completed in a workmanlike manner, even if this isn't specifically mentioned. This legal presumption exists to protect the interests of the parties involved, ensuring that basic standards are met in the absence of specific language in a contract. The other terms listed do not capture this concept effectively. "Express warranties" refer specifically to promises made explicitly in writing or verbally, while "contingent liabilities" relate to potential obligations that may arise depending on future events. "Explicit commitments," similar to express warranties, involve clear, stated obligations in a contract. These choices focus on obligations that are clearly articulated, unlike the implicit nature of implied warranties.