Discuss CIPS L4M6 Exam Topic 2 Question 67

[Relationship approaches and the sourcing process]

Within a supplier's terms and conditions, they have a 'mutual termination for convenience' clause, which requires either party to provide 30 days' notice. Before the buyer signed the agreement, a procurement colleague recommended that the buyer should request this be amended to 90 days' notice. Was this amendment the correct thing to do?

AYes, as this will allow the buyer enough time to mobilize a new contract

BYes, as the buyer will then be responsible for providing additional business to the supplier

CNo, as this will be in breach of statutory contract law requirements

DNo, as this will guarantee a hostile end to the buyer-supplier relationship

Suggested Answer: A

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14 comments · newest first

Fallon 10 months ago

I thought 90 days was excessive. Isn’t that just asking for trouble?

Justine 11 months ago

Wait, amending to 90 days could actually backfire, right?

Verdell 11 months ago

30 days is pretty standard for termination clauses.

Vallie 11 months ago

No way, 30 days is enough time to find a new supplier.

Stanton 11 months ago

Definitely should have pushed for 90 days! More time is always better.

Adelaide 11 months ago

I recall something about statutory requirements, but I don't think that applies here. Maybe it’s more about relationship management?

Dong 12 months ago

This reminds me of a practice question where we debated the pros and cons of notice periods. I think 30 days is standard, but 90 days could be safer.

Mattie 12 months ago

I'm not entirely sure, but I feel like amending to 90 days might create tension between the buyer and supplier.

Malcom 1 year ago

I remember discussing termination clauses in class, and I think a longer notice period could help avoid rushed decisions.

Marguerita 1 year ago

I feel pretty confident about this one. Extending the notice period to 90 days seems like the right move to give the buyer enough time to transition to a new supplier. I'll explain my reasoning clearly in my answer.

Latricia 1 year ago

I've got a good strategy for this. I'll focus on the potential impacts of the longer notice period, like the buyer's ability to mobilize a new contract and the effect on the buyer-supplier relationship. That should help me determine the best approach.

Kasandra 1 year ago

I'm a bit confused on this one. The question is asking whether the amendment was the correct thing to do, but I'm not sure what the right answer is. I'll have to think it through step-by-step.

Lawrence 1 year ago

Okay, let's see. The key here is whether extending the notice period to 90 days is the right thing to do. I'll need to weigh the pros and cons carefully.

Juan 1 year ago

Hmm, this seems like a tricky one. I'll need to carefully consider the implications of the termination clause and the procurement colleague's recommendation.

CIPS L4M6 Exam - Topic 2 Question 67 Discussion