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The CIPS L5M3 certification exam is one of the top-rated career advancement certifications in the market. With the Managing Contractual Risk L5M3 certification exam everyone can validate their skills and knowledge after passing the L5M3 text. The CIPS Managing Contractual Risk certification exam will recognize your expertise and knowledge in the market. You will get solid proof of your proven skill set. There are other countless benefits that you can gain after passing the CIPS Managing Contractual Risk certification exam.

CIPS Managing Contractual Risk Sample Questions (Q52-Q57):

NEW QUESTION # 52
Kelly and Chloe have a contract in which Kelly provides MRO supplies to Chloe's manufac-turing business. Kelly has committed a fundamental breach but Chloe has not suffered any loss. Chloe has chosen to terminate the contract. Can she claim damages?

• A. no - Chloe cannot claim damages as she decided to terminate the contract
• B. yes- Chloe can claim unliquidated damages as the contract is terminating
• C. no- Chloe cannot claim damages as she has not incurred a loss
• D. yes- Chloe can claim liquidated damages if these are stated in the contract

Answer: C Explanation:
3 is the correct answer. Damages cannot be claimed is there has not been any loss. This is stated on p. 122
NEW QUESTION # 53
R3D3 is a computer manufacturer who has had an issue with their supplier. They are seeking a conflict resolution approach which is flexible but will provide a binding and enforceable outcome. They would like the resolution to be confidential and directed by an independent third party that is appointed for them. Which of the following would be the best conflict resolution for them to select?

• A. litigation
• B. mediation
• C. negotiation
• D. arbitration

Answer: D Explanation:
Arbitration ticks all of the boxes required by R3D3. Mediation isn't correct because it's not binding. Negotiation isn't correct because there's no 3rd party. Litigation isn't correct because it's not confidential. See p. 80 for more on arbitration.
NEW QUESTION # 54
Kranky Kat Ltd has just been through an adjudication process with a supplier it worked with who committed a breach in the contract. Kranky Kat is not happy with the outcome of the adjudication, what can Kranky Kat do?

• A. nothing - the decision made by the adjudicator is legally enforceable
• B. appeal the decision
• C. nothing - the decision made by the adjudicator is binding
• D. move on to litigation

Answer: B Explanation:
If you're not happy with the decision of an adjudication you can appeal the decision. So option 2 is correct. If the appeal is turned down then unfortunately there's not much more you can do as adjudication is binding and legally enforceable. See p. 143 for more info on adjudication
NEW QUESTION # 55
Which of the following statements about adjudication is true?

• A. the decision made by the adjudicator is binding and usually communicated within 28 days
• B. the decision making process can be lengthy and expensive
• C. parties are expected to present their cases in person in front of the adjudicator
• D. adjudicators are appointed at random and therefore may not have specific knowledge of the subject matter

Answer: A Explanation:
The true statement is 'the decision made by the adjudicator is binding and usually communicated within 28 days'. The other three are false- adjudicators are usually experts in their field, the decision making process has a tight timescale and parties present their arguments in writing. This is the only written conflict resolution method.
NEW QUESTION # 56
Molly is a wedding planner who has just set up as a sole-trader. She has a meeting with a po-tential couple to organise their wedding. The couple is extremely risk adverse and have asked Molly to email them a copy of her insurances. Which insurances should Molly send? Select TWO

• A. Professional Indemnity Insurance
• B. Employers Liability Insurance
• C. Public Liability Insurance
• D. Products Liability Insurance

Answer: A,C Explanation:
The correct answers are indemnity insurance and public liability insurance. Molly doesn't have any products so this wouldn't be required- she's a consultant. As a sole-trader she doesn't have employees so doesn't need Employer's Liability Insurance. The book does not go into much detail about types of insurances - but this is a known exam topic. So if you aren't confident on these four types of insurance and when you'd expect a supplier to have them - do some extra research before the exam. Insurance types are briefly mentioned on p. 25
NEW QUESTION # 57
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