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CIPS L4M6 Exam - Topic 3 Question 80 Discussion

What is a valid reason for terminating a commercial relationship?
A) Fulfilment of the contract
B) One late delivery
C) The other party seeks to trade with other parties alongside you
D) A change of management within the other party, but no change to the company ethos

CIPS L4M6 Exam - Topic 3 Question 80 Discussion

Actual exam question for CIPS's L4M6 exam
Question #: 80
Topic #: 3
[All L4M6 Questions]

What is a valid reason for terminating a commercial relationship?

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Suggested Answer: A

Contracts are normally terminated when their obligations have been fulfilled. Termination due to one late delivery or management changes would be unreasonable unless specified in the contract. Trading with other parties is common unless exclusivity clauses exist.


by Daron at Jun 18, 2026, 08:19 PM

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Lashonda
12 hours ago
C seems tricky. I remember a practice question where trading with others was a reason, but it feels like it could be a normal business practice too.
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Peter
6 days ago
I'm not sure about B; one late delivery seems too minor to end a relationship, but I guess it depends on the context.
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Jesusa
11 days ago
I think A makes sense because fulfilling the contract means the relationship has served its purpose, right?
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