Discuss CIPS L3M1 Exam Topic 4 Question 45

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

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.

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26 comments · newest first

Gerald 2 months ago

I agree, it protects the buyer.

Kiley 2 months ago

I was unsure, but A feels right.

Chery 2 months ago

Yeah, that makes sense. Retention means holding back.

Eleni 3 months ago

I think it's A) Retention.

Stevie 3 months ago

I thought it was D) Retainer at first, but A fits better.

Broderick 3 months ago

I was unsure, but A sounds right. Good reasoning!

Zona 3 months ago

Yeah, I agree. Retention clause is common in contracts.

Gianna 3 months ago

I think it's A) Retention. Makes sense.

Quinn 4 months ago

Definitely A) Retention. It's common in contracts.

Olga 4 months ago

I was unsure, but A seems right. Good to ensure quality.

Matthew 4 months ago

Yeah, I agree. Retention clause protects the buyer.

Maryann 4 months ago

I think it's A) Retention. Makes sense to hold back funds.

Ivette 4 months ago

Yeah, retention makes the most sense here.

Hailey 4 months ago

I thought it was a redemption clause, interesting!

Tammara 6 months ago

Wait, are you sure it's not a retainer clause?

Matt 6 months ago

Totally agree, it's definitely A!

Orville 6 months ago

It's called a retention clause!

Zachary 6 months ago

Definitely retention, no doubt about it!

Georgene 7 months ago

I thought it was a redemption clause at first!

Daren 7 months ago

Wait, are we sure it's not a retainer clause?

Nancey 7 months ago

Totally agree, it's retention for sure.

Krissy 7 months ago

It's called a retention clause!

Justine 7 months ago

I feel like I've seen "retention" used in other practice questions, so I'm leaning towards that option.

Catalina 7 months ago

I'm confused between retention and retainer; they sound similar, but I can't recall which one is correct for this context.

Tamar 8 months ago

I remember practicing a question about this in class, and I think retention was the right answer.

Tyisha 8 months ago

I think it's called a retention clause, but I'm not entirely sure if that's the exact term used in contracts.

CIPS L3M1 Exam - Topic 4 Question 45 Discussion