Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25

- Free Preparation Discussions

CIPS Exam L3M3 Topic 3 Question 17 Discussion

Actual exam question for CIPS's L3M3 exam

Question #: 17
Topic #: 3

[All L3M3 Questions]

A contract clause indicating damages to be recovered in the event of under-performance, with the proposed damages being a genuine pre-estimate of loss, is called a:

APunitive damages clause

BLiquidated damages clause

CPenalty clause

DUnliquidated damages clause

Show Suggested Answer

Suggested Answer: A

In English law, implied terms exist, even if you can't see them in the contract documents. They commonly derive from statute. An example is the Sale of Goods Act.

by Chana at Aug 05, 2024, 07:56 AM

Limited Time Offer

25%

Off

Get Premium L3M3 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Naomi

5 days ago

Yeah, I agree. Liquidated damages is the correct answer here. It's a way to avoid the uncertainty of unliquidated damages.

upvoted 0 times

...

Cathrine

8 days ago

Hmm, I think the answer is B. Liquidated damages clause. That's the one where the damages are agreed upon beforehand, right?

upvoted 0 times

...

Reiko

9 days ago

I'm not sure, but I think C) Penalty clause is also a possibility. It's important to differentiate between liquidated damages and penalties.

upvoted 0 times

...

Lajuana

10 days ago

I agree with Nidia, because liquidated damages are meant to be a genuine pre-estimate of loss.

upvoted 0 times

...

Nidia

15 days ago

I think the answer is B) Liquidated damages clause.

upvoted 0 times

...