Master TOEIC Reading Part 1 & 2: Supplier Contract Review Practice Test

Are you preparing for the TOEIC exam and looking to improve your reading skills? This practice test focuses on supplier contract review, a common topic in business English. Let’s dive into some challenging questions to help you excel in TOEIC Reading Parts 1 and 2.

Part 1: Incomplete Sentences

In this section, you’ll find 30 incomplete sentences. Choose the best word or phrase to complete each sentence.

1. The company’s procurement team is responsible for _____ supplier contracts on a regular basis.
   A) reviewing
   B) reviews
   C) reviewed
   D) review

2. A thorough contract review process helps _____ potential risks and liabilities.
   A) identifying
   B) identify
   C) identified
   D) identifies

3. It is crucial to _____ all terms and conditions before signing a supplier agreement.
   A) carefully examine
   B) careless examine
   C) careful examine
   D) carefully examining

4. The legal department must _____ any changes to the contract before implementation.
   A) approve
   B) approves
   C) approved
   D) approving

5. Supplier contracts often include clauses related to pricing, delivery schedules, and _____ specifications.
   A) product
   B) productive
   C) production
   D) produce

6. The procurement manager should _____ any discrepancies in the contract terms.
   A) note
   B) noting
   C) noted
   D) notes

7. A well-structured contract review process can lead to _____ supplier relationships.
   A) improve
   B) improves
   C) improved
   D) improving

8. The company’s CFO must _____ all high-value supplier contracts before finalization.
   A) sign off on
   B) signs off on
   C) signed off on
   D) signing off on

9. It is essential to _____ the supplier’s financial stability during the contract review process.
   A) assess
   B) assessing
   C) assessed
   D) assesses

10. The procurement team should _____ any ambiguous language in the contract to prevent misunderstandings.
    A) clarify
    B) clarifies
    C) clarified
    D) clarifying

11. A comprehensive contract review helps ensure that both parties _____ their obligations.
    A) understand
    B) understands
    C) understood
    D) understanding

12. The legal team must _____ the contract for compliance with local and international regulations.
    A) vet
    B) vets
    C) vetted
    D) vetting

13. It is important to _____ the supplier’s track record before entering into a long-term agreement.
    A) verify
    B) verifies
    C) verified
    D) verifying

14. The contract should clearly _____ the responsibilities of each party involved.
    A) outline
    B) outlines
    C) outlined
    D) outlining

15. A thorough review process can help _____ potential disputes with suppliers.
    A) mitigate
    B) mitigates
    C) mitigated
    D) mitigating

16. The procurement team must _____ all contract modifications in writing.
    A) document
    B) documents
    C) documented
    D) documenting

17. It is crucial to _____ the contract’s termination clauses and conditions carefully.
    A) review
    B) reviews
    C) reviewed
    D) reviewing

18. The company should _____ its supplier contracts at least annually to ensure they remain competitive.
    A) reassess
    B) reassesses
    C) reassessed
    D) reassessing

19. A well-executed contract review can lead to _____ cost savings for the company.
    A) significant
    B) significantly
    C) significance
    D) signify

20. The procurement team should _____ any potential conflicts of interest during the review process.
    A) identify
    B) identifies
    C) identified
    D) identifying

21. It is important to _____ the supplier’s capacity to meet the company’s demand before finalizing the contract.
    A) evaluate
    B) evaluates
    C) evaluated
    D) evaluating

22. The contract should clearly _____ the payment terms and conditions.
    A) specify
    B) specifies
    C) specified
    D) specifying

23. A comprehensive review process helps _____ the risk of supply chain disruptions.
    A) minimize
    B) minimizes
    C) minimized
    D) minimizing

24. The procurement team must _____ all relevant stakeholders in the contract review process.
    A) involve
    B) involves
    C) involved
    D) involving

25. It is crucial to _____ the supplier’s quality control measures during the contract review.
    A) assess
    B) assesses
    C) assessed
    D) assessing

26. The contract should _____ provisions for dispute resolution and arbitration.
    A) include
    B) includes
    C) included
    D) including

27. A thorough review process can help _____ the company’s negotiating position with suppliers.
    A) strengthen
    B) strengthens
    C) strengthened
    D) strengthening

28. The procurement team should _____ any potential intellectual property issues in the contract.
    A) address
    B) addresses
    C) addressed
    D) addressing

29. It is important to _____ the contract’s confidentiality clauses to protect sensitive information.
    A) scrutinize
    B) scrutinizes
    C) scrutinized
    D) scrutinizing

30. The company must _____ all supplier contracts in a secure and organized manner.
    A) maintain
    B) maintains
    C) maintained
    D) maintaining

Supplier Contract Review Process Flowchart

Part 2: Text Completion

In this section, you’ll find 4 short passages related to supplier contract review. Each passage has 4 blanks. Choose the best word or phrase to fill each blank.

Passage 1

The process of (1) supplier contracts is crucial for maintaining healthy business relationships and ensuring compliance with company policies. A thorough review helps (2) potential risks and opportunities for improvement. It is essential to involve key stakeholders, including the legal department, finance team, and relevant business units, to (3) a comprehensive assessment. By carefully examining all aspects of the contract, companies can (4) their interests and optimize their supply chain operations.

1. A) reviewing B) revising C) rewriting D) renewing
2. A) identify B) identities C) identified D) identifying
3. A) ensure B) insure C) assure D) secure
4. A) protect B) protects C) protected D) protecting

Passage 2

When (5) a supplier contract, it is important to pay close attention to the terms and conditions. This includes carefully examining the pricing structure, delivery schedules, and quality standards. Companies should also (6) the supplier’s financial stability and capacity to meet their requirements. Additionally, it is crucial to (7) any potential conflicts of interest or ethical concerns. By conducting a thorough review, businesses can (8) the likelihood of disputes and ensure a mutually beneficial partnership.

5. A) reviewing B) review C) reviewed D) reviews
6. A) assess B) assesses C) assessed D) assessing
7. A) identifies B) identify C) identified D) identifying
8. A) minimize B) minimizes C) minimized D) minimizing

Contract Review Checklist Template

Passage 3

One of the key aspects of supplier contract review is (9) compliance with relevant laws and regulations. This includes ensuring that the contract adheres to local, national, and international legal requirements. Companies must also (10) that the contract aligns with their own policies and ethical standards. It is important to (11) any clauses that may pose legal or reputational risks. By conducting a thorough legal review, businesses can (12) potential liabilities and protect their interests.

9. A) ensuring B) insuring C) assuring D) securing
10. A) verify B) verifies C) verified D) verifying
11. A) identify B) identifies C) identified D) identifying
12. A) mitigate B) mitigates C) mitigated D) mitigating

Passage 4

Effective supplier contract review requires a structured approach and clear communication among all parties involved. It is essential to (13) a standardized process that covers all critical aspects of the contract. This includes (14) the supplier’s performance metrics, negotiating favorable terms, and establishing clear expectations. Companies should also (15) regular reviews of existing contracts to ensure they remain competitive and aligned with business objectives. By implementing a robust review process, organizations can (16) their supplier relationships and drive long-term value.

13. A) establish B) establishes C) established D) establishing
14. A) define B) defines C) defined D) defining
15. A) conduct B) conducts C) conducted D) conducting
16. A) strengthen B) strengthens C) strengthened D) strengthening

understanding invoice discrepancies in contracts is another crucial aspect of supplier contract review. By carefully examining invoices and comparing them to contract terms, companies can identify and resolve any discrepancies promptly, ensuring accurate payments and maintaining strong supplier relationships.

Answer Key

Part 1: Incomplete Sentences

1. A) reviewing
2. B) identify
3. A) carefully examine
4. A) approve
5. A) product
6. A) note
7. C) improved
8. A) sign off on
9. A) assess
10. A) clarify
11. A) understand
12. A) vet
13. A) verify
14. A) outline
15. A) mitigate
16. A) document
17. A) review
18. A) reassess
19. A) significant
20. A) identify
21. A) evaluate
22. A) specify
23. A) minimize
24. A) involve
25. A) assess
26. A) include
27. A) strengthen
28. A) address
29. A) scrutinize
30. A) maintain

Part 2: Text Completion

Passage 1:

1. A) reviewing
2. A) identify
3. A) ensure
4. A) protect

Passage 2:
5. A) reviewing
6. A) assess
7. B) identify
8. A) minimize

Passage 3:
9. A) ensuring
10. A) verify
11. A) identify
12. A) mitigate

Passage 4:
13. A) establish
14. A) define
15. A) conduct
16. A) strengthen

By practicing with these TOEIC Reading Part 1 and 2 questions focused on supplier contract review, you’ll be better prepared to tackle similar topics in the actual exam. Remember to pay close attention to grammar, vocabulary, and context clues when selecting your answers. Good luck with your TOEIC preparation!