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CIPS L4M3 Exam Dumps Questions and Answers

Exam Code: L4M3
Vendor: CIPS
Last Update: Nov 23, 2024
Questions: 190 With Expert Explanation
10  Customers Passed CIPS L4M3
88%  Average Success In Real Exam
92%  Questions came word by word from this dump
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Commercial Contracting Questions and Answers

Questions 1

A procurement manager is preparing a long-term contract with a major supplier. She decides to use the variable pricing arrangement using price indices. The payment terms describe the circumstances and mechanism where the price is allowed to change. In order to successfully manage this type of contract, the buying organisation should have...?

Options:

A.

Good market knowledge

B.

Selection of base year

C.

Value for money

D.

Economy of scale

Questions 2

Cleveland Insurance (Cleveland) offers a range of insurance services. The main software used in the call centre is a customer relationship management (CRM) system. Cleveland perceived an urgent need to replace the existing CRM system to deal with the increasing number of customers and services.

Urgent Digital Ltd (Digital) is one of the bidders of Cleveland’s ITT for designing, building and managing the new CRM system. Its bid team is led by Hank Irvine, its technical director. Hank realises that winning the Cleveland contract (valued at approximately £50M) will enhance his career. During discussions with Cleveland, Hank offers certain assurances regarding timescales for the project. He has not carried out any investigations into the viability of the timescales. Hank has little idea whether the timescales can be met.

Cleveland decides that Digital’s bid meets with its requirements, especially given the assurances in timescale offered by Hank, and decides to proceed with it, subject to a formal contract. Eventually, a formal contract is signed by both parties. The initial assurances given by Hank about the timing of the project are never going to be achieved and are at best grossly exaggerated.

Cleveland brought the case to the court and sought rescission of contract with Digital. Is Cleveland’s claim appropriate in this case?

Options:

A.

Yes, because Cleveland needs to seek rescission first before claiming for damages

B.

Yes, because both parties agreed with rescission of their contract

C.

No, because the work had been carried out which could not be returned

D.

No, because the contract does not include any provision on rescission

Questions 3

Which of the following best defines an ‘express’ term in general contract arrangements?

Options:

A.

It is a standard set of terms and conditions published by CIPS

B.

It is not necessarily discussed by the parties, but nonetheless forms part of the contract

C.

It is the term that is added to the contract by the law or based upon the facts of the case.

D.

It is clearly agreed between the parties, and is virtually always written down in the contract