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CIPS L3M1 Exam - Topic 4 Question 45 Discussion

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:
A) Retention
B) Redemption
C) Intention
D) Retainer

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:

Show Suggested Answer Hide 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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Gerald
4 days ago
I agree, it protects the buyer.
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Kiley
9 days ago
I was unsure, but A feels right.
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Chery
14 days ago
Yeah, that makes sense. Retention means holding back.
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Eleni
19 days ago
I think it's A) Retention.
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Stevie
25 days ago
I thought it was D) Retainer at first, but A fits better.
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Broderick
30 days ago
I was unsure, but A sounds right. Good reasoning!
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Zona
1 month ago
Yeah, I agree. Retention clause is common in contracts.
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Gianna
1 month ago
I think it's A) Retention. Makes sense.
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Quinn
2 months ago
Definitely A) Retention. It's common in contracts.
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Olga
2 months ago
I was unsure, but A seems right. Good to ensure quality.
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Matthew
2 months ago
Yeah, I agree. Retention clause protects the buyer.
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Maryann
2 months ago
I think it's A) Retention. Makes sense to hold back funds.
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Ivette
2 months ago
Yeah, retention makes the most sense here.
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Hailey
2 months ago
I thought it was a redemption clause, interesting!
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Tammara
4 months ago
Wait, are you sure it's not a retainer clause?
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Matt
4 months ago
Totally agree, it's definitely A!
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Orville
4 months ago
It's called a retention clause!
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Zachary
4 months ago
Definitely retention, no doubt about it!
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Georgene
5 months ago
I thought it was a redemption clause at first!
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Daren
5 months ago
Wait, are we sure it's not a retainer clause?
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Nancey
5 months ago
Totally agree, it's retention for sure.
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Krissy
5 months ago
It's called a retention clause!
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Justine
5 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
5 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
6 months ago
I remember practicing a question about this in class, and I think retention was the right answer.
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Tyisha
6 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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