Certified Professional Contract Manager (CPCM) Practice Exam

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What does "explicit change" mean in the context of contract changes?

A change that is clearly defined and obvious

In the context of contract changes, "explicit change" refers to a change that is clearly defined and obvious. This means that the terms of the change, including the specific details and implications, are stated in a way that leaves no room for ambiguity or misunderstandings. Explicit changes are typically documented formally, ensuring that all parties involved have a mutual understanding of what the change entails and how it affects the original contract.

Recognizing an explicit change is crucial for the effective management of contracts, as it helps prevent disputes and maintains clarity in the expectations and responsibilities of all parties. It ensures that modifications made to the contract are agreed upon and understood, thus facilitating smoother operations and compliance.

The other options describe scenarios that do not align with the definition of "explicit change." For instance, subtle alterations that require interpretation imply a level of ambiguity, while informal discussions lack the formal documentation necessary for contractual clarity. Anticipated future adjustments relate to changes that are expected but not yet realized, rather than changes that are currently defined and agreed upon.

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A subtle alteration that requires interpretation

A modification discussed informally

An anticipated future adjustment

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