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CIPS L5M3 Dumps

Exam Code:
L5M3
Exam Name:
Managing Contractual Risk
Last Update: Apr 18, 2024
120 Questions
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Managing Contractual Risk Questions and Answers

Questions 1

When considering consequential loss, can a cap be placed on the amount claimed?

Options:

A.

yes- this is known as a limitation of liability clause

B.

yes- this is known as a pre-estimate of damages

C.

no- there can be no cap to either direct loss or consequential loss

D.

no- there can be a cap to direct loss but not to consequential loss

Questions 2

Which of the following would not be considered a contract? Select TWO

Options:

A.

A written agreement between two robbers to rob a bank which states that the money gained would be split evenly between the two.

B.

a domestic agreement between two parents about who will pick the kids up from school

C.

a phone call between a supplier and buyer in which the buyer agrees to purchase 100 teddy bears from the supplier for £100.

D.

a written document in which Paul agrees to clean Freda's house for £10

E.

an email chain between a buyer and supplier which includes a PO and Invoice

Questions 3

What is a Prime Contract?

Options:

A.

A contract between a buyer and main supplier

B.

A contract between an end customer and a company which has full responsibility for its performance

C.

A contract between a supplier and a subcontractor

D.

A contract between a public sector organisation and the taxpayer

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