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CIPS L3M1 Exam - Topic 4 Question 45 Discussion

Actual exam question for CIPS's L3M1 exam

Question #: 45
Topic #: 4

[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 Marylou at Mar 03, 2026, 07:07 PM

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Tammara

15 days ago

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

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Matt

20 days ago

Totally agree, it's definitely A!

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Orville

26 days ago

It's called a retention clause!

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Zachary

1 month ago

Definitely retention, no doubt about it!

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Georgene

1 month ago

I thought it was a redemption clause at first!

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Daren

1 month ago

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

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Nancey

2 months ago

Totally agree, it's retention for sure.

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Krissy

2 months ago

It's called a retention clause!

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Justine

2 months ago

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

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Catalina

2 months ago

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

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Tamar

2 months ago

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

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Tyisha

2 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.

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