CIPS Exam L5M3 Topic 1 Question 18 Discussion

Actual exam question for CIPS's L5M3 exam

Question #: 18
Topic #: 1

ABC has a contract with its supplier DEF who delivers pasta to ABC's manufacturing plant. DEF has committed a breach and conflict resolution has taken place. The Court has awarded ABC 'specific performance' damages. What could this involve?

ADEF must pay money to ABC as stated in the liquidated damages clause

BDEF must pay an amount of money as determined by the courts

CDEF must deliver the pasta required by ABC

DDEF must rescind the contract

Show Suggested Answer

Suggested Answer: C

DEF must deliver the pasta required by ABC is the correct answer. Specific performance is when the innocent party is rewarded by receiving what was initially negotiated - in this case the delivery of pasta. It's basically a posh way of saying that the court mandates you to do what the contract says. See p. 129 for information on Specific Performance.

by Loren at Dec 14, 2023, 03:57 AM

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