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L5M3 Managing Contractual Risk is now Stable and With Pass Result | Test Your Knowledge for Free

L5M3 Practice Questions

Managing Contractual Risk

Last Update 4 days ago
Total Questions : 120

Dive into our fully updated and stable L5M3 practice test platform, featuring all the latest CIPS Level 5 Advanced Diploma in Procurement and Supply exam questions added this week. Our preparation tool is more than just a CIPS study aid; it's a strategic advantage.

Our free CIPS Level 5 Advanced Diploma in Procurement and Supply practice questions crafted to reflect the domains and difficulty of the actual exam. The detailed rationales explain the 'why' behind each answer, reinforcing key concepts about L5M3. Use this test to pinpoint which areas you need to focus your study on.

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Question # 11

Which of the following will you put into box 7?

Options:

A.  

adjudication

B.  

arbitration

C.  

mediation

D.  

litigation

Discussion 0
Question # 12

A failure to perform a provision of a contract which does not affect the end performance of the contract is known as what?

Options:

A.  

small breach

B.  

minor breach

C.  

major breach

D.  

warranty breach

Discussion 0
Question # 13

Sally is shopping and sees an advert in a travel agent's window that says that flights to Malta are 50% off. She enters the shop and begins to speak to a travel agent who informs her that the poster she'd seen is out of date. Is the travel agent obliged to give Sally the discounted flight?

Options:

A.  

yes- the offer was displayed and therefore must be honoured

B.  

yes- the offer is valid until another offer or counter offer is provided

C.  

no- the offer has been rescinded

D.  

no - the advert is an invitation to treat

Discussion 0
Question # 14

A large financial organisation ensures that they have contracts with all of their suppliers. In which instance would indemnity not necessarily form part of the contract?

Options:

A.  

A Deed of Appointment of a Consultant

B.  

In assignment of intellectual property rights

C.  

A software licence agreement

D.  

A confidentiality agreement

Discussion 0
Question # 15

Dianne has a loan agreement which contains a clause for default. What does a clause for default imply?

Options:

A.  

this allows the lender to demand overdue payments are made straight away

B.  

this allows a lender to demand payment from a guarantor if the borrower is unable to pay

C.  

this allows the lender to declare insolvency

D.  

this allows the lender to demand full payment of the outstanding balance

Discussion 0
Question # 16

Kelly and Chloe have a contract in which Kelly provides MRO supplies to Chloe's manufac-turing business. Kelly has committed a fundamental breach but Chloe has not suffered any loss. Chloe has chosen to terminate the contract. Can she claim damages?

Options:

A.  

yes- Chloe can claim liquidated damages if these are stated in the contract

B.  

yes- Chloe can claim unliquidated damages as the contract is terminating

C.  

no- Chloe cannot claim damages as she has not incurred a loss

D.  

no - Chloe cannot claim damages as she decided to terminate the contract

Discussion 0
Question # 17

What is the name given to a term in a contract where one party promises to compensate the other party for a trigger event?

Options:

A.  

liability

B.  

warranty

C.  

damages

D.  

indemnity

Discussion 0
Question # 18

Restitution Measures are an award which seeks to return the value of a benefit which has been seen to be unfairly received. Which of the following statements about Restitution Measures is TRUE? Select TWO

Options:

A.  

restitution damages intend to return the innocent party to the position they were in be-fore the contract

B.  

restitution damages considers the position of the breaching party before the contract

C.  

restitution damages are based on how much was gained by the breaching party as a re-sult of the breach

D.  

restitution damages are not limited to pre-agreed levels stated in the contract

Discussion 0
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