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Before you subcontract to an outside seller, you must take all the necessary precautions to reduce any risks to your project. You use a fixed-price contract, which is actually a risk to the seller. What is the ethical thing to do before you enter into the contract?
You assume the seller is well versed with the contract type and is aware of the risks involved and not mention anything
Let the seller know the risks involved after you sign the contract
Avoid mentioning the situation, as its favorable to you
Let the seller know all the risks involved before signing the contract
Refer PMBOK Guide
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