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CIPS L5M3 Exam - Topic 1 Question 43 Discussion

Lollypop Manufacturer has a long standing contract with Retailer
C) yes- if there is a variation clause and both parties agree
A) They are three years into a five year contract and have been providing lollypops at 10p each since the beginning of the contract. Due to changes in the supply chain Lollypop Manufacturer would like a price increase. Can this be done?
A) no- the contract is ongoing for another 2 years
B) no- this would be unfair on the buyer
D) yes- prices always go up in contracts

CIPS L5M3 Exam - Topic 1 Question 43 Discussion

Actual exam question for CIPS's L5M3 exam
Question #: 43
Topic #: 1
[All L5M3 Questions]

Lollypop Manufacturer has a long standing contract with Retailer

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Suggested Answer: C

yes- if there is a variation clause and both parties agree. This would usually be written in as a 'price adjustment clause' but if it's not, then it could be agreed and signed by both parties as a 'contract variation'. See p.16 for more details


by Alfred at Nov 18, 2024, 12:53 AM

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Larae
7 months ago
Prices always go up? That’s not how contracts work!
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Gilberto
8 months ago
If there's a variation clause, they might have a chance.
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Nikita
8 months ago
Wait, can they really raise prices mid-contract?
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Tora
8 months ago
I agree, changing the price now seems unfair!
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Lenna
8 months ago
They’ve been locked in for 2 more years, so no price increase.
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Emily
9 months ago
I thought contracts were pretty rigid, but I guess there are exceptions? I’m not confident about this one.
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Elmira
9 months ago
I practiced a similar question where a price increase was only allowed if both sides consented. So, I think option C could be correct.
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Frederica
9 months ago
I'm not entirely sure, but I feel like a contract should be honored unless both parties agree to changes.
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Paris
9 months ago
I remember discussing contracts and how price changes can be tricky. I think a variation clause might be key here.
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Jacquelyne
9 months ago
Okay, I think I've got this. The contract has a set price of 10p per lollipop, and it's still got 2 years left. Unless there's a specific variation clause that allows for a price change, I don't see how the manufacturer could increase the price unilaterally. Gotta read those contract terms carefully!
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Amie
9 months ago
Well, I definitely wouldn't say that prices always go up in contracts. That seems like a risky assumption. I think the safest answer is that a price increase would not be allowed, since the contract is still ongoing.
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Nada
9 months ago
Hmm, I'm not sure about this one. The question says the contract is ongoing for another 2 years, so I'm not sure if a price increase would be allowed. I'll need to think this through carefully.
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Queen
9 months ago
I think the key here is to look for any variation clause in the contract that would allow for a price increase. If there is one, and both parties agree, then it seems like a price increase could be possible.
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Isadora
2 years ago
I'm gonna have to go with option C as well. Gotta love those variation clauses, they really come in handy!
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Linwood
1 year ago
As long as it's done in a transparent and fair manner, a price increase can be negotiated.
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Christiane
1 year ago
I think it's fair to consider a price increase if both parties benefit from it.
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Junita
2 years ago
Agreed, it's important for both parties to agree on any changes to the contract.
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Rutha
2 years ago
I'm gonna have to go with option C as well. Gotta love those variation clauses, they really come in handy!
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Jarvis
2 years ago
Hah, option D is definitely a trap answer. Prices don't always go up in contracts, that's just silly.
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Theodora
2 years ago
I don't know, I'm thinking option A might be the best answer. The contract is still ongoing, so they can't just change the price unilaterally.
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Dean
2 years ago
Yes, it's important to follow the terms of the contract. Option A is the way to go.
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Dierdre
2 years ago
I agree, option A makes sense. The contract is still in place.
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Casey
2 years ago
That's true, unless there is a variation clause and both parties agree to it.
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Kattie
2 years ago
But the contract is still ongoing for another 2 years, so they might not be able to change the price.
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Casey
2 years ago
I think Lollypop Manufacturer should be able to ask for a price increase.
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Tandra
2 years ago
Option C seems like the way to go here. If there's a variation clause and both parties agree, then a price increase should be allowed.
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Ammie
2 years ago
If there's no agreement, it could definitely cause some tension in the contract relationship.
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Dustin
2 years ago
But what if the buyer doesn't agree to the price increase? Would the contract be at risk?
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Gerald
2 years ago
I agree, it's important for both parties to be on the same page when it comes to contract changes.
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Chauncey
2 years ago
Option C seems like the way to go here. If there's a variation clause and both parties agree, then a price increase should be allowed.
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