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CIPS L5M2 Exam - Topic 1 Question 68 Discussion

An indemnity clause should contain which of the following pieces of information 1) duties of both parties 2) a monetary limit 3) insurance levels 4) details of the breach 5) a time limit
A) 1,2,5
B) 1,3,4
C) 2,4,5
D) 3,4,5

CIPS L5M2 Exam - Topic 1 Question 68 Discussion

Actual exam question for CIPS's L5M2 exam
Question #: 68
Topic #: 1
[All L5M2 Questions]

An indemnity clause should contain which of the following pieces of information 1) duties of both parties 2) a monetary limit 3) insurance levels 4) details of the breach 5) a time limit

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Suggested Answer: A

Indemnity clauses should contain duties of both parties, a monetary limit and a time limit (1 2 and 5). It should also detail what types of costs are covered. These four points are explained on p.61. An indemnity clause doesn't necessarily signal a breach in contract, and levels of insurance are not relevant here.


by Cyndy at Apr 01, 2026, 10:48 PM

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Tegan
8 hours ago
I think A is the best choice. Duties and limits are crucial.
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Bambi
6 days ago
Just to clarify, indemnity clauses often include breach details.
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Karol
11 days ago
Totally agree with A, those are the essentials!
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Lenna
16 days ago
Wait, are we sure a time limit is always necessary?
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Lou
2 months ago
I think insurance levels are crucial too, so B seems off.
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Alisha
2 months ago
Definitely need duties of both parties and a monetary limit!
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Lou
3 months ago
I thought the details of the breach were crucial, but I’m uncertain if they need to be included in every indemnity clause.
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Denny
3 months ago
I feel like options A and C both make sense because they cover important aspects, but I’m leaning towards A since it mentions the time limit.
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Julian
3 months ago
I remember practicing a question like this where we discussed insurance levels, but I can't recall if they were mandatory in the clause.
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Trina
4 months ago
I think the indemnity clause should definitely include the duties of both parties, but I'm not sure about the monetary limit.
upvoted 0 times
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