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CIPS L5M3 Exam - Topic 1 Question 28 Discussion

Parky Parks Ltd has a contract with Slides R Us for the provision of children's playground equipment. The contract contains a clause for liquidated damages and puts the figure at 500k. Which of the following statements is correct? Select TWO
D) liquidated damages is a genuine estimate of loss
A) Liquidated damages needs to be a 100% accurate figure
B) If damages exceed 500k Parky Parks can apply to the courts to get Slides R Us to pay above this amount
C) Damages under the amount of 500k are not required to be paid to Parky Parks
E) costs incurred above 500k will be covered by Parky Parks Ltd

CIPS L5M3 Exam - Topic 1 Question 28 Discussion

Actual exam question for CIPS's L5M3 exam
Question #: 28
Topic #: 1
[All L5M3 Questions]

Parky Parks Ltd has a contract with Slides R Us for the provision of children's playground equipment. The contract contains a clause for liquidated damages and puts the figure at 500k. Which of the following statements is correct? Select TWO

Show Suggested Answer Hide Answer
Suggested Answer: D

'restitution damages cannot be mitigated by the actions of the innocent party' is the untrue state-ment out of these four. The general principle of Restitution Damages is that the innocent party is expected to be proactive in mitigating the consequences of any breach and should not allow costs to spiral out of control. See p. 124


by Gayla at May 18, 2024, 03:02 PM

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Elfrieda
9 months ago
Costs above 500k are on Parky Parks, right? Sounds off.
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Kris
9 months ago
If damages exceed 500k, they can't get more? That's weird.
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Margurite
10 months ago
Wait, can they really only claim up to 500k?
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Willard
10 months ago
Totally agree, it's just an estimate of loss!
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Mayra
10 months ago
Liquidated damages don't have to be 100% accurate.
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Mollie
10 months ago
I’m pretty sure that if damages are under 500k, they still need to be paid, so option C doesn't seem correct to me.
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Eugene
11 months ago
I practiced a similar question where we had to determine if a liquidated damages clause was enforceable. I feel like option B might be misleading.
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Sharita
11 months ago
I think option D sounds right because liquidated damages should reflect a genuine estimate of loss, but I'm a bit confused about the other options.
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Lynsey
11 months ago
I remember discussing liquidated damages in class, but I'm not sure if they need to be exactly accurate.
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Keva
11 months ago
Based on my understanding, the liquidated damages clause means Parky Parks can recover up to 500k, but they don't have to prove the exact amount of their loss. Anything above 500k would need to be claimed separately.
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Fabiola
11 months ago
The tricky part is understanding how liquidated damages work in relation to the actual damages. I'll need to review my notes on that before selecting the right answers.
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Jarod
11 months ago
I'm pretty confident that liquidated damages don't need to be an exact figure, as long as it's a genuine pre-estimate of the potential loss. And if the actual damages exceed 500k, Parky Parks can't recover more than that amount.
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Hermila
11 months ago
Okay, let's think this through. The contract specifies a liquidated damages figure of 500k, so that's likely the correct amount Parky Parks can recover. I'm not sure about the other statements though.
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Cassandra
11 months ago
This question seems straightforward, but I want to make sure I understand the key points about liquidated damages before selecting my answers.
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Camellia
11 months ago
Hmm, this is a tricky one. I'm not entirely sure which option is the correct answer, but I'll try to break down the question and eliminate the options that don't seem to fit.
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Kati
11 months ago
I remember studying about different instance types in ACK, but I'm not completely sure about GPU instances being mentioned.
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Luke
11 months ago
This is tricky. The metrics don't all point to the same conclusion. I'll need to carefully consider the tradeoffs and think about the company's priorities to make the best recommendation.
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Lonna
11 months ago
I'm leaning towards the Application Gateway option. It seems like it could handle the load balancing and routing requirements, and it might be a better fit than a public load balancer since the users are accessing through VPNs. But I'm still a bit unsure, so I'll need to double-check the details.
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Tatum
1 year ago
I'm surprised Slides R Us didn't include a clause for 'Extreme Playground Damage' - you know, in case the kids take things a little too far and demolish the whole place. Gotta cover all your bases in these contracts!
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Erasmo
1 year ago
User 3: Liquidated damages is a genuine estimate of loss, right?
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Corazon
1 year ago
User 2: Yeah, they need to cover all possibilities in the contract
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Annamaria
1 year ago
User 1: I think they should have included that clause for 'Extreme Playground Damage'
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Yoko
1 year ago
This is easy - A and D are the correct answers. Liquidated damages don't have to be 100% accurate, but they do need to be a reasonable estimate. Anything above 500k is still owed, and Parky Parks can't just pocket the difference if it's less. Common sense, really.
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Fabiola
1 year ago
B) If damages exceed 500k Parky Parks can apply to the courts to get Slides R Us to pay above this amount
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Gregg
1 year ago
Exactly, A and D are the correct answers. It's all about reasonable estimates.
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Janine
1 year ago
D) liquidated damages is a genuine estimate of loss
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Nadine
1 year ago
A) Liquidated damages needs to be a 100% accurate figure
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Mable
1 year ago
I'm going with D and B. The 500k figure is a genuine estimate, but if the actual damages exceed that, Parky Parks can go to court to get the extra amount. Trying to avoid paying anything under 500k is just silly.
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Goldie
1 year ago
Yes, that's right. It's important to understand the terms of the contract and not try to avoid paying damages under 500k.
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Estrella
1 year ago
I agree, D and B are the correct statements. The 500k is just an estimate, and Parky Parks can go to court if damages exceed that.
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Refugia
1 year ago
I'm not sure about that. I think it's A and B. The damages need to be accurate and Parky Parks can apply to the courts if it exceeds 500k.
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King
1 year ago
B and C are definitely wrong. The whole point of liquidated damages is to have a predetermined amount that has to be paid, regardless of the actual loss. Anything above 500k would still be owed.
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Glenn
1 year ago
I think A and D are correct. Liquidated damages need to be a reasonable estimate of the potential loss, not an exact figure. Anything above 500k would still need to be paid, as it's a predetermined amount.
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Alana
1 year ago
No, they can't. The contract specifies the liquidated damages amount.
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Stevie
1 year ago
So Parky Parks Ltd can't apply to the courts to get more than 500k from Slides R Us?
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Angelica
1 year ago
That's right, damages above 500k would still need to be paid by Slides R Us.
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Cordelia
1 year ago
I agree, A and D are correct. Liquidated damages don't have to be exact, just a reasonable estimate.
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Deandrea
1 year ago
I agree with Danilo. Liquidated damages should be a genuine estimate of loss and costs above 500k will be covered by Parky Parks Ltd.
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Danilo
1 year ago
I think the correct statements are D and E.
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