Free Practice CIPS L5M3 Exam Questions 2025

Stay ahead with 100% Free CORE Level 5 Managing Contractual Risk L5M3 Dumps Practice Questions

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Total 122 Questions | Updated On: Apr 23, 2025

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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?

A : Yes- this is a breach of a condition

B : Yes- this is a fundamental breach

C : no- the specification is not a contract document

D : no - there has been a breach in a warranty

Answer: D

Question 2

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

Question 3

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 4

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

A : mediation

B : negotiation

C : arbitration

D : conciliation

Answer: B

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?

A : liquidated damages

B : unliquidated damages

C : penalty clause

D : service credit

Answer: B

Page: 1 / 25

Total 122 Questions | Updated On: Apr 23, 2025

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