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CIPS L4M3 Exam - Topic 6 Question 25 Discussion

Actual exam question for CIPS's L4M3 exam
Question #: 25
Topic #: 6
[All L4M3 Questions]

A procurement professional is preparing a sale & purchase contract of a machinery. Which of the following clauses should be added to the contract? Select TWO that apply

Show Suggested Answer Hide Answer
Suggested Answer: D

When parties do not negotiate face-to-face, a key Question: becomes when

things like acceptances, rejections and revocations take effect. The general rule is that acceptances are effective on dispatch (when they are mailed). Everything else becomes effective when the offeror actually receives them. This idea is codified by the ''mailbox rule'' which states that acceptance is effective on dispatch, even before the offeror has received it. (The one minor exception to this rule involves option contracts for which acceptances are not effective until they are received by the offeror.)


- The Mailbox Rule

- CIPS study guide page 34

by Kristel at Dec 10, 2023, 10:01 PM

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Rolande
3 months ago
Totally agree with the insurance and guarantees!
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Celestine
3 months ago
Wait, what's "ratio decidendi"? Sounds fancy but unnecessary.
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Fabiola
3 months ago
Supplier selection mechanism is crucial, no doubt!
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Josue
4 months ago
I think guarantees are a must too.
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Xochitl
4 months ago
Definitely need insurance requirements!
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Val
4 months ago
I feel like the supplier selection mechanism might not be necessary for a sale and purchase contract. I’d go with B and E, but I’m not completely confident.
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Percy
4 months ago
I’m a bit confused about the period of hire. I thought that was more relevant for rental agreements, not purchase contracts.
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Annamae
4 months ago
I remember we practiced a similar question, and I think guarantees are crucial for machinery contracts. I’m leaning towards B and E.
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Whitney
5 months ago
I think the insurance requirements are definitely important, but I'm not sure about the supplier selection mechanism. Did we cover that in class?
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Gayla
5 months ago
This is a good opportunity to showcase my procurement knowledge. I'll select the insurance and guarantees clauses - those are essential for protecting the buyer in a machinery sale.
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Melda
5 months ago
Ratio decidendi? What on earth does that mean? I'm going to have to guess on that one and focus on the more obvious choices.
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Shala
5 months ago
Okay, I think I've got a handle on this. Insurance and guarantees are definitely important for a machinery sale contract. I'll make sure to select those two options.
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Angella
5 months ago
Hmm, I'm a bit unsure about this one. The options seem a bit technical, so I'll need to carefully review the details of each clause.
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Joni
5 months ago
This looks like a straightforward procurement contract question. I'd focus on the key elements like insurance requirements and guarantees.
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Cyril
5 months ago
Okay, this seems straightforward. I'll need to identify the specific paragraphs, save the text as a Quick Part, and store it in the right location.
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Darrel
5 months ago
Ah, good catch on the unseen spaces at the start or end of the cells. I bet that's causing some of the problems with the lookup. Definitely going to make sure to check for that.
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Beckie
10 months ago
Ratio decidendi? Is that Latin for 'the reason for the decision'? I'm pretty sure the only Latin I need to know in procurement is 'caveat emptor'.
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Xenia
9 months ago
Adding clauses like insurance requirements and guarantees are crucial in a sale & purchase contract for machinery.
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Paris
9 months ago
In procurement, 'caveat emptor' is definitely a key phrase to remember. It means 'buyer beware'.
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Katlyn
10 months ago
Yes, 'ratio decidendi' is Latin for 'the reason for the decision'. It's an important legal term in contracts.
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Brittney
10 months ago
Supplier selection and guarantees, got it. As for the rest, I think the procurement pro is trying to sneak in some legalese just to keep us on our toes.
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Joesph
10 months ago
Ratio decidendi? Really? I thought this was a procurement exam, not a law school final.
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Laquita
9 months ago
B) Insurance requirements
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Glennis
9 months ago
A) Supplier selection mechanism
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James
10 months ago
I think guarantees should also be added to ensure the quality of the machinery.
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Leigha
10 months ago
Insurance requirements? Check. Guarantees? Double check. Period of hire? Wait, is this a lease agreement or a sale contract?
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Darnell
9 months ago
I agree, guarantees should also be included to protect both parties.
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Twila
9 months ago
Yes, insurance requirements are important to include in the contract.
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Adell
9 months ago
B) Insurance requirements
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Annalee
10 months ago
A) Supplier selection mechanism
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Maurine
10 months ago
I agree with Adell. Insurance requirements are important to protect both parties.
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Roxane
11 months ago
Ah, the age-old question of what to include in a procurement contract. Supplier selection and guarantees are definitely a must, the rest seem like a bit of a stretch.
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Adell
11 months ago
I think we should add insurance requirements to the contract.
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