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CIPS Exam L3M1 Topic 2 Question 37 Discussion

Actual exam question for CIPS's L3M1 exam

Question #: 37
Topic #: 2

[All L3M1 Questions]

A contract clause which entitles the buyer to hold back 5% of the final price for six months to en-sure everything is in order is known as a --------- clause:

ARetention

BRedemption

CIntention

DRetainer

Show Suggested Answer

Suggested Answer: A

'Retention' - from the word 'retain', meaning to 'keep in place', 'hold back', 'keep possession of' something (Concise Oxford Dictionary, fifth edition) . In this case, 5% of the contract price.

by Ammie at Jul 12, 2025, 11:01 AM

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Arlen

13 days ago

Retention clause, for sure. Wouldn't want to get stuck with a shoddy job, right? Although, maybe the contractor should get a 'Retention Bonus' for good work. Just sayin'.

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Denny

24 days ago

Hmm, Retention? Sounds like a good way to keep the contractor honest. I'm all for it!

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Olene

26 days ago

Retention, without a doubt. Keeps the contractor on their toes and ensures quality work.

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Armanda

1 months ago

I'm not sure, but I'll go with A) Retention as well since it seems to be the most logical choice.

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Donette

1 months ago

I agree with Buddy, A) Retention seems like the correct answer based on the description of the clause.

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Buddy

1 months ago

I think it's A) Retention because it makes sense to hold back a portion of the final price to ensure everything is in order.

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Darci

1 months ago

Definitely a Retention clause! Gotta make sure the job's done right before handing over the full payment.

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Makeda

18 days ago

Yes, it's a smart way to ensure that the seller fulfills all obligations before receiving full payment.

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James

24 days ago

I agree, a Retention clause is essential for protecting the buyer's interests.

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Eun

2 months ago

A) Retention

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