CIPS L5M3 Exam - Topic 1 Question 31 Discussion

Actual exam question for CIPS's L5M3 exam

Question #: 31
Topic #: 1

John has signed a document with Larry that says that he will give Larry his car. Both John and Larry are over the age of 18 and are of sound mind. Larry accepts this offer and signs the document. Is this a contract?

Ayes- it has been signed

Byes- both parties consent and have capacity to do so

Cno- there is no consideration

Dno- this document is an invitation to treat

Show Suggested 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 Candra at Jul 03, 2024, 04:48 AM

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Robt

6 months ago

Isn't this just a promise? Not sure it's a real contract.

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Leonor

6 months ago

Totally agree, they both consented and are of age!

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Luis

6 months ago

Wait, is it really a contract without any payment?

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Ryan

7 months ago

I think it needs consideration to be valid.

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Bobbye

7 months ago

Definitely a contract, both signed it!

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Yolande

7 months ago

I remember that a contract needs to have all elements, including consideration. So, I think option C might be the right choice since it seems like there's no exchange happening.

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Art

7 months ago

I'm a bit uncertain about whether this counts as a contract. I feel like we discussed something similar in class, but I can't recall the details.

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Michel

7 months ago

I think option B makes sense because both parties are of sound mind and consented. That seems like a key point in contract law.

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Una

8 months ago

I remember that for a contract to be valid, there needs to be consideration. I'm not sure if giving a car counts as consideration here.

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Goldie

8 months ago

I'm a little confused on the consideration piece. If there's no exchange of value, then it might not be a valid contract. I'll need to review that concept again before answering.

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Francesco

8 months ago

Okay, I think I've got it. The fact that they're both over 18 and of sound mind suggests capacity, and the signing indicates offer and acceptance. The tricky part is the consideration, but I'm leaning towards option B.

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Annamaria

8 months ago

Hmm, I'm a bit unsure about this one. The question mentions that they both signed the document, but it doesn't explicitly say there was consideration. I'll need to think this through carefully.

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Yong

8 months ago

This seems like a straightforward contract question. I'll focus on the key elements - offer, acceptance, and consideration.

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Gwenn

8 months ago

This seems straightforward to me. The key elements of a contract are all present - offer, acceptance, and capacity. The lack of consideration is the only potential issue, but I think option B is the best answer.

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Haydee

8 months ago

Statement 4 seems completely off because it contradicts the core principles of flexibility and decentralization, but the others feel a bit fuzzy to me.

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Caitlin

8 months ago

I'm pretty sure this is asking about a type of mass model, and the correct answer is that an In-place mass model is not saved externally from the project file.

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Gene

8 months ago

This seems like a straightforward question about behavior modification techniques. I'm pretty confident I can identify the correct approach the parents are using.

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Haydee

1 year ago

This is the kind of contract dispute that would make Judge Judy reach for her gavel and a bottle of Pepto-Bismol!

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Lottie

11 months ago

D) no- this document is an invitation to treat

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Edda

11 months ago

C) no- there is no consideration

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Barney

11 months ago

B) yes- both parties consent and have capacity to do so

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Tammara

11 months ago

A) yes- it has been signed

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Antonio

1 year ago

Wait, wait, wait... John's giving Larry his car? I bet Larry's already planning to trade it in for a hot tub and a lifetime supply of avocado toast!

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Carolynn

11 months ago

C) no- there is no consideration

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Pansy

11 months ago

B) yes- both parties consent and have capacity to do so

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Teddy

11 months ago

A) yes- it has been signed

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Zona

1 year ago

Whoa, hold on there! If John and Larry are both of sound mind and over 18, it's gotta be a valid contract, right? I'm going with B, no doubt about it.

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