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L4M3 Practice Questions

Commercial Contracting

Last Update 3 days ago
Total Questions : 233

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Our free CIPS Level 4 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 L4M3. Use this test to pinpoint which areas you need to focus your study on.

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Question # 31

Which of the following are the conditions for revocation of offer to be valid?

1. The offeree has not received the offer yet

2. Revocation of offer must be communicated with the offeree

3. Revocation of offer must be sent via email

4. Offeree has not accepted the offer yet

Options:

A.  

2 and 4 only

B.  

1 and 4 only

C.  

1 and 3 only

D.  

2 and 3 only

Discussion 0
Question # 32

Esther Francis has recently changed job from a supply role at Shine Cleaning Services (SCS) to a purchasing role at Southern Commercial Property (SCP).

Esther requires industry technical input to develop a cleaning services requirements specification for her new employer. Esther Francis wants to include her former employer SCS, in a market engagement exercise to inform the specification. Which of the following would be the most appropriate way to deal with the conflict of interest?

Options:

A.  

Conduct the market engagement with SCS off the record

B.  

Declare the potential conflict of interest to a senior manager of SCS

C.  

Ask a colleague to conduct the market engagement with SCS

D.  

Conduct market engagement with several capable suppliers, including SCS

Discussion 0
Question # 33

RL Corporation are developing a specification for a new piece of equipment. They have no prior experience of procuring the item. The procurement manager wants to understand the benefits and risks of conducting market dialogue to help inform the procurement strategy. Which of the following are three potential advantages of market dialogue? Select THREE that apply.

Options:

A.  

There is no need to conduct a full procurement process

B.  

More collaborative supplier relationships can be developed

C.  

Organisations can clarify and optimise the requirements

D.  

The procurement process becomes significantly quicker

E.  

Purchasers can gauge market interest and competition

F.  

Market dialogue is risk-free as there is no contract or agreement

Discussion 0
Question # 34

Michelle contacts Hannah and asks her if she would be interested in purchasing her car for £2000. Hannah immediately takes £2000 to Michelle and says she wants to buy the car. Michelle subsequently refuses to proceed. Has the contract between Michelle and Hannah been made?

Options:

A.  

No, because Michelle has rejected Hannah's offer on buying the car

B.  

Yes, because both parties have full legal capability to enter into a contract

C.  

Yes, by her performance Hannah has accepted Michelle's offer on selling the car

D.  

No, because by refusing to proceed, Michelle rejects Hannah's counter-offer

Discussion 0
Question # 35

A company needs to source a product from oversea. It wants to overcome technical barrier to cross-border trade by using standards in the specification. Which of the following is most likely to be incorporated into that specification?

Options:

A.  

National standards

B.  

Company standards

C.  

Brands

D.  

International standards

Discussion 0
Question # 36

Under English law's general legal principles of contract formation, which of the following are likely to be offers? Select TWO that apply.

Options:

A.  

Invitation to tender

B.  

Quotation

C.  

Purchase order

D.  

Advertisement

E.  

Catalogue

Discussion 0
Question # 37

A retailer prefers to display its best selling products and promotion programme on the building windows. According to rule of contract formation, this act will generally constitute...?

Options:

A.  

An invitation to treat

B.  

A legal capacity

C.  

An offer

D.  

A mailbox rule

Discussion 0
Question # 38

Northern Province Authority (NPA) seeks to use market dialogue to improve the contract specification for a new procurement tender of a domestic waste collection contract. Which of the following topics would be appropriate for dialogue with potential suppliers?

Options:

A.  

Human resourcing

B.  

Contract terms

C.  

Pricing proposals

D.  

Service innovation

Discussion 0
Question # 39

Which of the following is a benefit to the buyer of using model form contracts?

Options:

A.  

The terms used are advantageous to the buyer

B.  

It reduces time and costs in developing a formal contract

C.  

No legal advice is required as variations are not accepted

D.  

Most suppliers are unfamiliar with the terms used

Discussion 0
Question # 40

Which of the following KPIs is qualitative?

1. Openness and co-operation of supplier

2. Responsiveness of supplier

3. Customer satisfactory ratings

4. Cost management

5. OTIF deliveries

Options:

A.  

2 and 5 only

B.  

1 and 3 only

C.  

2 and 3 only

D.  

1 and 4 only

Discussion 0
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