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CIPS L5M3 Dumps Questions Answers

L5M3 exam

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Managing Contractual Risk

Last Update Dec 3, 2022
Total Questions : 120

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Managing Contractual Risk Questions and Answers

Questions 1

Tyrone Enterprises has just come out of a meeting with one of its suppliers Bob. The meeting has not gone well and the contract has become frustrated. What does this mean?

Options:

A.

Negotiations between the buyer and supplier have failed and dispute resolution will need to take place

B.

the supplier has committed a major breach and is unable to fulfil the contract

C.

a situation has occurred which means that the contract can no longer be performed

D.

The buyer no longer requires the supplier but is tied into the contract

Questions 2

John is a chocolatier and has a big order of Easter Eggs coming up in April. He also creates chocolates to sell all year round in his shop, but Easter Eggs represent a large proportion of his profits each year. John's chocolate making machine has just broken and he has ordered a new one to be delivered in February. However due to a delay, the manufacturer of the new machine can't deliver until May. What course of action can John take?

Options:

A.

John can claim for loss of his regular earnings but not for the easter eggs

B.

John can claim for the loss of the Easter Eggs but not his regular earnings

C.

John can claim for both the loss of the Easter Eggs and his regular earnings

D.

John cannot claim for any loss as these are in the future and he doesn't know what these would be

Questions 3

Which of the following would not be considered acceptance of a contract term?

Options:

A.

silence

B.

accepting a delivery of a product into the factory

C.

an invoice

D.

a handshake