Free Online CIPS L5M3 Practice Test

Prepare Your CIPS L5M3 Exam Questions with Free online L5M3 Practice Test. Get Brilliant CORE Level 5 Managing Contractual Risk Exam Results with Valid L5M3 Exam Dumps.

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Total 122 Questions | Updated On: May 14, 2024

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Question 1

Which of the following are a suitable course of action to take in the event of a minor breach of a contract? Select TWO

A : litigation

B : progress meetings

C : collaboration

D : adjudication

E : liquidated damages

Answer: B,C

Question 2

2021-03-31-15-36-11-0cfaf8452dd7dd756d2fb60fe4b41708

Which of the following will you put into box 2?

A : subcontracting

B : reputational damage

C : penalty clause

D : consequential loss

Answer: B

Question 3

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?

A : Terry can apply to the court to increase the liquidated damages to £3000

B : Terry can sue the retailer for the additional costs incurred above the liquidated damages

C : Terry can deliver the toys as agreed as there is a contract in place

D : Terry can do nothing and must pay the additional £2000 out of his own pocket

Answer: D

Question 4

Which of the following would be included in a contract to assign costs and responsibilities between buyer and seller when products are delivered?

A : Indemnity

B : Liquidated Damages

C : Liability

D : Incoterms

Answer: D

Question 5

2021-04-01-10-29-32-60d4982a051344803c8102c9c6f0c318

Which of the following will you put into box 6?

A : adjudication

B : arbitration

C : mediation

D : litigation

Answer: C

Page: 1 / 25

Total 122 Questions | Updated On: May 14, 2024

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