CAPM (Certified Associate in Project Management) Practice Exam

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What describes a letter contract?

  1. An informal email agreement

  2. A binding document between two international parties

  3. A written preliminary contract authorizing immediate start of work

  4. A detailed contract requiring all signatures

The correct answer is: A written preliminary contract authorizing immediate start of work

A letter contract is a written preliminary contract that authorizes the immediate start of work before a formal contract is finalized. It is typically utilized when time is of the essence to commence work on a project and enables the parties involved to get started quickly while the detailed contract is being negotiated. Option C correctly describes the nature and purpose of a letter contract.

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