Free CIPS L4M3 Exam Questions

Become CIPS Certified with updated L4M3 exam questions and correct answers

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Total 289 Questions | Updated On: Jul 23, 2026

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Question 1

What are five essential elements of a legally binding contract?

A : Offer, acceptance, compensation, ability, correct form

B : Offer, agreement, consensus, capacity, correct form

C : Offer, acceptance, consideration, capacity, correct form

D : Offer, acceptance, mediation, capacity, contract

Answer: C

Question 2

A construction company often subcontracts approximately 50% of the project works because ofunpredictable customer's demand. Although larger corporate customers require quick response to RFQ, thetime lapse between tender bid submission and contract commencement is usually long. Which of thefollowing arrangement would benefit both the contractor and customer?

A : Indemnity agreement

B : Bilateral contract

C : Collateral contract

D : Framework agreement

Answer: D

Question 3

Which of the following is the term that describes an item bought for a single and non-recurring use or purpose?

A : Stock purchase

B : Call-off purchase

C : Ad-hoc purchase

D : Operational purchase

Answer: C

Question 4

Which of the following is the term that describes an item bought for a single and non-recurring use or purpose?

A : Stock purchase

B : Call-off purchase

C : Ad-hoc purchase

D : Operational purchase

Answer: C

Question 5

Which of the following is the reason why liquidated damage clauses are embedded into a contract?

A : Because liquidated damages are the only remedy

B : To penalise the supplier for their wrongdoing

C : To avoid argument on correct measure of damage

D : Because compensation will be awarded immediately

Answer: C

Page: 1 / 58

Total 289 Questions | Updated On: Jul 23, 2026

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