CIPS L4M3 Exam - Topic 10 Question 43 Discussion

Actual exam question for CIPS's L4M3 exam

Question #: 43
Topic #: 10

ABC Ltd is a UK based company. It plans to enter into a contract with XYZ Ltd which is based in Singapore. Which of the following are the mandatory elements for the contract between ABC Ltd and XYZ Ltd to be legally binding? Select THREE that apply.

AAll parties must have capacity to contract

BThe two parties must have intention to be bound

CThe invitation to tender must be sent by the agreed deadline

DThere must be an offer and an acceptance

EAn amount of money must be paid upfront

FThere must be an invitation to treat

Show Suggested Answer

Suggested Answer: C

Express terms are the terms of the agreement which are expressly agreed between the parties. Ideally, they will be written down in a contract between the parties but where the contract is agreed verbally, they will be the terms discussed and agreed between the parties.

The types of express terms to be found in a contract are many and varied and will depend on the type of contract. Any term written into the contract is an express term and may refer to price, time scales, warranties and indemnities, limitations on liability, conditions precedent and so on.

- Contracts: Express and Implied Terms

- CIPS study guide page 32

LO 1, AC 1.2

by Dante at Sep 11, 2024, 02:30 PM

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Franchesca

6 months ago

An upfront payment isn't always required, right?

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Patti

6 months ago

Offer and acceptance are definitely key elements!

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Jesusita

6 months ago

Wait, does an invitation to tender really matter for a binding contract?

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Lera

7 months ago

Totally agree, intention to be bound is essential too.

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Jospeh

7 months ago

All parties must have capacity to contract is a must!

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Christoper

7 months ago

I believe all parties must have capacity and there must be intention to be bound, but I can't quite remember if the invitation to tender is mandatory.

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Elinore

7 months ago

I practiced a similar question, and I feel like the offer and acceptance part is crucial, but I’m uncertain about the need for an upfront payment.

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Kimi

7 months ago

I think intention to be bound is one of the key elements, and I also recall that there needs to be an offer and acceptance.

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Shaniqua

8 months ago

I remember that capacity to contract is definitely important, but I'm not sure about the invitation to treat.

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Enola

8 months ago

I feel pretty confident about this. The key things are the parties' capacity, their intention to create legal relations, and the presence of an offer and acceptance. Those are the three I'll go with.

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Adela

8 months ago

The upfront payment requirement seems a bit odd to me. I don't think that's a standard element for a contract to be legally binding. I'll skip that one.

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Marion

8 months ago

Okay, let me think this through. Capacity and intention to be bound are definitely essential. And an offer and acceptance are crucial too. I'll select those three options.

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Earlean

8 months ago

This looks like a classic contract law question. I'll focus on the key elements of a legally binding contract - capacity, intention, and offer/acceptance.

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Edda

8 months ago

Hmm, I'm a bit unsure about the invitation to treat part. Does that really count as a mandatory element for the contract to be binding?

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Percy

8 months ago

This seems like a tricky question. I'll need to carefully read through each statement and think about which one is false.

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Mammie

8 months ago

Hmm, I'm a bit unsure about this one. There are a lot of details in the defect report, and I want to make sure I'm considering all the relevant information before selecting an answer.

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Alisha

1 year ago

Psst, the secret handshake is only required for the advanced contracts exam. This is the beginner level, so stick to the basics.

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Bettina

1 year ago

I think I'll go with A, B, and D. Can't go wrong with the classics, right? Unless of course, this is a trap and the correct answer is like, A, D, and the secret handshake or something.

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