100% Free L5M3 Exam Dumps to Pass Exam Easily from PassLeaderVCE [Q26-Q46]

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100% Free L5M3 Exam Dumps to Pass Exam Easily from PassLeaderVCE

Free L5M3 Exam Questions L5M3 Actual Free Exam Questions

To prepare for the CIPS L5M3 certification exam, candidates can take advantage of a range of study materials and resources, including online courses, textbooks, and practice exams. These resources are designed to help candidates develop a deep understanding of the topics covered in the exam and to build their confidence and competence in managing contractual risks.

NO.26 Which of the following will you put into box 8?

Condition

Warranty

Innominate Term

NO.27 What is the name given to a term in a contract where one party promises to compensate the other party for a trigger event?

liability

warranty

damages

indemnity

NO.28 ABC has a contract with its supplier DEF who delivers pasta to ABC’s manufacturing plant. DEF has committed a breach and conflict resolution has taken place. The Court has awarded ABC ‘specific performance’ damages. What could this involve?

DEF must pay money to ABC as stated in the liquidated damages clause

DEF must pay an amount of money as determined by the courts

DEF must deliver the pasta required by ABC

DEF must rescind the contract

NO.29 Jenny has received a written offer from a supplier. She emails them to clarify if they can do next day delivery. The supplier does not reply. The next day Jenny makes the payment. Has a contract been formed?

yes- the supplier made an offer and Jenny accepted it by making a payment

yes- a counter offer has been made

no- the clarification constitutes a conditional acceptance

no- a contract has not been signed

NO.30 Perry is seeking a resolution to a conflict he has with his supplier. He wants a third party to make a binding and legally enforceable decision and wants the issue to remain confidential. He is considering litigation. Is this the best solution for Perry?

yes- litigation is the most appropriate for his requirements

no- Perry should try mediation

no- Perry should try Adjudication

no – Perry should try Conciliation

NO.31 When drafting a liability clause in a contract, which of the following statements are TRUE? Select THREE

exclusions should be narrowly defined and clearly state which types of liabilities are excluded

the goal of the liability clause is to punish the contractor for poor performance

liability is a legal responsibility

liability can only be limited where there is valid insurance

liability cannot be excluded for injury resulting from negligence

NO.32 Verity Fashion is a clothing manufacturer and has an order to create 10,000 pairs of flipflops for a retailer for the summer. The order was placed over the phone in February. The order has been completed and has been boxed up ready for delivery. The retailer calls Verity Fashion in June and says that the order is no longer required. What action can Verity Fashion take?

sue for damages as the flip flops have already been made and this incurred costs

nothing- there is no written contract in place

subcontract the manufacturing of the flipflops to a third party

claim on insurance

NO.33 Which of the following will you put into box 8?

litigation

adjudication

mediation

arbitration

NO.34 Sam is a factory manager and has purchased a new fixed asset on a loan purchase agreement. There is a forbearance agreement between the Factory and the provider. What does this mean?

the lender agrees to give the breaching party a period of time as an extension by which to meet their obligations

the lender requires the buyer to assign a guarantor in case they cannot make payments

the lender is able to demand full payment of outstanding balances in case of none pay-ment

the lender is able to charge interest on the purchase in line with RPI

NO.35 Parky Parks Ltd has a contract with Slides R Us for the provision of children’s playground equipment. The contract contains a clause for liquidated damages and puts the figure at £500k. Which of the following statements is correct? Select TWO

Liquidated damages needs to be a 100% accurate figure

If damages exceed £500k Parky Parks can apply to the courts to get Slides R Us to pay above this amount

Damages under the amount of £500k are not required to be paid to Parky Parks

liquidated damages is a genuine estimate of loss

costs incurred above £500k will be covered by Parky Parks Ltd

NO.36 Which of the following will you put into box 7?

Mediation

Arbitration

Litigation

Negotiation

NO.37 George is a procurement manager at a manufacturing company and is reviewing a contract he has with a supplier. He notes that there are multiple appendices to the contract and there is no Precedence of Documents. What does this mean for the contract?

all clauses are considered equal

clauses in the contract take precedent over clauses in the appendices

the clauses that come first in the document, take precedent

the contract is not valid

NO.38 Which of the following statements about ‘Specific Performance’ are TRUE? Select TWO.

Orders for Specific Performance can be a lengthy and costly process

Orders for Specific Performance can be a cheap and quick way to remedy a breach in contract

If a party is ordered to complete a ‘Specific Performance’ and doesn’t, they can be ar-rested

The innocent party must mitigate all losses

NO.39 Which of the following will you put into box 6?

adjudication

arbitration

mediation

litigation

NO.40 What is the purpose of conflict resolution?

to create a binding solution to an issue

to agree on a way forward

to ensure all parties are happy with the outcome

to punish the party who breaks the contract

NO.41 Which of the following will you put into box 6?

Condition

Warranty

Innominate Term

NO.42 Penguin Ltd has a contract with Blue Company. Blue Company has just broken a warranty in the contract. What remedies does Penguin Ltd have available?

they can sue and claim damages

they can claim damages and terminate the contract

they can terminate the contract but cannot claim damages

they can claim damages but not terminate the contract

NO.43 A contract term which is difficult to classify at the time of drafting a contract is known as?

condition

warranty

consideration

innominate

NO.44 Which of the following will you put into box 1?

subcontracting

reputational damage

penalty clause

consequential loss

NO.45 Fruity McFruitFace is an exporter of fruit. Which of the following payment terms would be most advantageous for it?

open account

documentary collection

documentary credits

advance payment

NO.46 Lollypop Manufacturer has a long standing contract with Retailer A.
They are three years into a five year contract and have been providing lollypops at 10p each since the beginning of the contract. Due to changes in the supply chain Lollypop Manufacturer would like a price increase. Can this be done?

no- the contract is ongoing for another 2 years

no- this would be unfair on the buyer

yes- if there is a variation clause and both parties agree

yes- prices always go up in contracts