CIPS L4M3 : CIPS Commercial Contracting

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CIPS L4M3 Exam Syllabus Topics:

Reference: https://www.cips.org/qualifications/diploma-in-procurement-supply/commercial-contracting/

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CIPS Commercial Contracting Sample Questions:

Question #1
Which of the following is the reason why liquidated damage clauses are embedded into a contract?

A. Because compensation will be awarded immediately
B. Because liquidated damages are the only remedy
C. To avoid argument on correct measure of damage
D. To penalise the supplier for their wrongdoing

Question #2
Which of the following are the conditions for revocation of offer to be valid?
1. The offeree has not received the offer yet
2. Revocation of offer must be communicated with the offeree
3. Revocation of offer must be sent via email
4. Offeree has not accepted the offer yet

A. 2 and 4 only
B. 2 and 3 only
C. 1 and 4 only
D. 1 and 3 only

Question #3
Carillion Ltd is a major construction contractor in the UK. The company commits to continuous improvement and sets out a performance management program that is integrated across the organisational, individual, and supplier levels. To ensure that the suppliers acknowledge the program, every time negotiating the contract terms with suppliers, the procurement team of Carillion appends a performance management framework to the draft document as a schedule. Is the action of procurement team appropriate?

A. Yes, because the framework should have legal standing as a part of contract
B. No, because the performance management should be solely developed by suppliers
C. Yes, because Carillion wants to implement early supplier involvement
D. No, because the framework will increase the complexity of the contract

Question #4
Maximum Score: 1
A service contract for cleaning is due for expiry after a five year duration. Which of the following are good sources of data to create a specification for the new invitation to tender?
* Incumbent supplier
* Maintenance services
* Alternative suppliers
* Management information

A. 2, 3 and 4 only
B. 1, 2 and 4 only
C. 1, 3 and 4 only
D. 1, 2 and 3 only

Question #5
Which of the following are examples of conformance specification? Select TWO that apply:

A. Product sample
B. Technical drawing
C. Output-focused specification
D. Statement of work
E. Outcome-focused specification

Solutions: