Free CIPS L5M3 Exam Questions

Become CIPS Certified with updated L5M3 exam questions and correct answers

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Total 122 Questions | Updated On: Sep 03, 2026
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Question 1

Sarah is a baker and orders free-range eggs from a local supplier which she uses to make cakes. There is a contract in place which included a specification that states that the eggs must be free-range. One day the supplier delivers eggs which Sarah uses in the cakes. Later she discovered that these were not free-range. Sarah believes that the supplier has broken the contract. Is this true?


Answer: D
Question 2

Which of the following is not a form of ADR (Alternative Dispute Resolution)?


Answer: B
Question 3

Which of the following processes is the most adversarial?


Answer: B
Question 4

Terry's Toys is a Toy Manufacturer who has an agreement to provide Toys to an online retailer. The retailer has ordered 500 toys from Terry and Terry has incurred costs of £3000 manufacturing the toys. Halfway through production the retailer calls Terry to cancel the order. Terry reads through the contract and sees a liquidated damages clause of £1000. What should Terry do?


Answer: D
Question 5

Logan Gin Distillery is creating a contract for one of its new suppliers. It is a complicated item that they are ordering and if things go wrong, it would have an extremely negative impact on production, and therefore on revenue. However it is impossible to say what the cost of this would be if things were to go wrong. What type of clause should be included in the contract?


Answer: B
Page:    1 / 25      
Total 122 Questions | Updated On: Sep 03, 2026
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