Free CIPS L3M4 Exam Questions

Question 1

‘Doing things for less cost’ is a description of:

A : Effectiveness

B : Economy

C : Efficiency

Answer: B

Question 2

An office manager buys some wallpaper based on samples, only to find the batch of paper delivered is of a slightly different colour than the sample provided. Is this an implied term covered under sale by description?

A : No, it is sale by sample. The bulk does not correspond with the sample

B : Yes, it is sale by description. The wallpaper is not the correct colour

C : No, it is not of satisfactory quality. The wallpaper is not fit for purpose intended

D : Yes, it is sale by description. The wallpaper does not conform to the description

Answer: A

Question 3

In contracts, implied terms play a crucial role in defining the rights and obligations of parties, even when not expressly stated in the contract. Which of the following are potential examples of implied terms? Select TWO that apply.

A : Terms that are incorporated by reference to another contract document, such as a technical specification

B : Terms that are inferred by the courts based on general legal principles, ensuring parties act honestly and fairly in their contractual dealings

C : Terms that are not fundamental but the breach of which entitles the innocent party to claim damages without the right to terminate the contract

D : Terms that are fundamental to a contract, the breach of which may give rise to the right to terminate the contract

E : Terms that are fundamental to a contract, the breach of which may give rise to the right to terminate the contract

Answer: B,E

Question 4

In contracts, implied terms play a crucial role in defining the rights and obligations of parties, even when not expressly stated in the contract. Which of the following are potential examples of implied terms? Select TWO that apply.

A : Terms that are incorporated by reference to another contract document, such as a technical specification

B : Terms that are inferred by the courts based on general legal principles, ensuring parties act honestly and fairly in their contractual dealings

C : Terms that are not fundamental but the breach of which entitles the innocent party to claim damages without the right to terminate the contract

D : Terms that are fundamental to a contract, the breach of which may give rise to the right to terminate the contract

E : Terms that are fundamental to a contract, the breach of which may give rise to the right to terminate the contract

Answer: B,E

Question 5

In contracts, implied terms play a crucial role in defining the rights and obligations of parties, even when not expressly stated in the contract. Which of the following are potential examples of implied terms? Select TWO that apply.

A : Terms that are incorporated by reference to another contract document, such as a technical specification

B : Terms that are inferred by the courts based on general legal principles, ensuring parties act honestly and fairly in their contractual dealings

C : Terms that are not fundamental but the breach of which entitles the innocent party to claim damages without the right to terminate the contract

D : Terms that are fundamental to a contract, the breach of which may give rise to the right to terminate the contract

E : Terms that are fundamental to a contract, the breach of which may give rise to the right to terminate the contract

Answer: B,E