Project Management Professional (PMP) Exam Practice – Question1609

What doctrine causes a party to relinquish rights under a contract because it knowingly fails to execute those rights?


A.
Assignment of claims
B. Material breach
C. Waiver
D. Warranties

Correct Answer: C

Explanation:

Explanation:
Under the doctrine of waiver, a party can relinquish rights that it otherwise has under the contract. If the seller offers incomplete, defective, or late performance, and the buyer’s project manager knowingly accepts that performance, the buyer has waived its right to
strict performance. In some circumstances, the party at fault may remain liable for provable damages, but the waiver will prevent the buyer from claiming a material breach and, thus, from terminating the contract.