Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

CIPS Exam L5M3 Topic 1 Question 24 Discussion

Actual exam question for CIPS's L5M3 exam
Question #: 24
Topic #: 1
[All L5M3 Questions]

When assessing damages caused by a breach, which of the following statements is true?

Show Suggested Answer Hide Answer
Suggested Answer: C

The correct answer is: 'damages attempt to position the innocent party in the position that they would have been had the contract been performed as expected'. This is a quote from p. 121 Option1 is incorrect as unliquidated damages aren't stated in a contract. Option 2 is incorrect because liquidated damages are an assessment of damages before a breach. Option 4 is incorrect because not all breaches are caused by errors (they can be caused by negligence or the offending party withholding something).


by France at Apr 08, 2024, 09:40 PM

Limited Time Offer

25%

Off

Get Premium L5M3 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel
Lamar
8 days ago
Hmm, I'm not so sure about that. Isn't it better to have a clear, pre-determined plan for damages instead of leaving it up to the courts?
upvoted 0 times
...
Laurel
10 days ago
True, but that's why we have courts and conflict resolution, right? They can figure out the appropriate damages after the fact.
upvoted 0 times
...
Cordelia
11 days ago
I don't know, guys. Option B also makes sense. Assessing damages can be really difficult before a breach even happens.
upvoted 0 times
...
Sharmaine
12 days ago
Exactly! C is the way to go. The damages should compensate the innocent party, not just stick to what's written in the contract.
upvoted 0 times
...
Peggie
14 days ago
I'm leaning towards C. The whole point of damages is to put the innocent party back in the position they would have been in if the contract was properly performed, right?
upvoted 0 times
...
Gregoria
16 days ago
This is a tricky question. I'm not sure if I should go with option A or C. What do you all think?
upvoted 0 times
...

Save Cancel