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CIPS L5M3 Exam - Topic 1 Question 55 Discussion

Actual exam question for CIPS's L5M3 exam
Question #: 55
Topic #: 1
[All L5M3 Questions]

A large financial organisation ensures that they have contracts with all of their suppliers. In which instance would indemnity not necessarily form part of the contract?

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Suggested Answer: D

Indemnity isn't usually used for confidentiality agreements - this is stated on p.21 of the study guide. This is because it's hard to indemnify against- you don't know what the consequence of a breach of confidentiality is going to be so it's hard to quantify. Unliquidated damages is more suitable. The study guide does state that indemnity is frequently used in intellectual property rights, software licence agreements and share purchase agreements. This is also written on p. 21.


by Viola at Aug 01, 2025, 04:54 AM

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Justine
2 months ago
I think it can vary, but D seems right.
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Carline
2 months ago
Wait, are we sure about that?
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Avery
2 months ago
I agree, especially with option D!
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Graham
3 months ago
Definitely not in a software license either.
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Marge
3 months ago
Indemnity usually isn't in confidentiality agreements.
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Ruby
3 months ago
I feel like a Deed of Appointment might not have indemnity, but I can't recall the specifics. This is tricky!
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Edgar
4 months ago
I practiced a similar question where indemnity was discussed in the context of intellectual property. I wonder if that applies here too.
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Evette
4 months ago
I'm not entirely sure, but I remember something about indemnity being common in software licenses. Could it be the confidentiality agreement?
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Svetlana
4 months ago
I think indemnity might not be included in a confidentiality agreement since it's more about protecting information than liability.
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Katie
4 months ago
I'm feeling pretty confident about this one. Based on my understanding of contract law, indemnity is not always necessary in agreements that involve the transfer of intellectual property rights. So I'm going to go with option B.
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Ashley
4 months ago
Okay, I've got a strategy here. I'm going to eliminate the options that seem more likely to include indemnity, like software license agreements and confidentiality agreements. That leaves me with the consultant appointment and IP assignment as the more likely answers.
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Daryl
4 months ago
Hmm, this is a tricky one. I'm leaning towards option B, "assignment of intellectual property rights," since those types of agreements may not always require indemnity provisions. But I'll need to think it through a bit more.
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Rikki
5 months ago
I'm not entirely sure about this one, but I think the key is to focus on the types of contracts where indemnity might not be necessary. The question mentions a "Deed of Appointment of a Consultant" as one possibility, so that's a good place to start.
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Antonio
5 months ago
This is a tricky one. I'd say B. Indemnity is crucial when assigning intellectual property rights to protect both parties.
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Janet
5 months ago
I think indemnity would not be part of the contract in a software licence agreement.
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Lindsay
5 months ago
Hmm, I'm not so sure. What if the confidentiality agreement is part of a bigger contract? Wouldn't indemnity still be relevant there?
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Antonio
2 months ago
Exactly! Each contract can vary widely in its requirements.
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Antonio
2 months ago
I think it depends on the specific terms of the agreement.
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Rana
2 months ago
Good point! But confidentiality agreements usually focus on protecting information.
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King
3 months ago
True, but they can still have indemnity clauses sometimes.
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Kayleigh
7 months ago
I agree with An. Indemnity is more common in contracts involving intellectual property or services, not just for confidentiality.
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Arlean
5 months ago
B: Yeah, that makes sense. It's important to protect against any potential legal issues.
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Hershel
5 months ago
A: I think indemnity is usually included in contracts for intellectual property rights.
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An
7 months ago
I think the answer is D. A confidentiality agreement usually doesn't include indemnity provisions.
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Kenneth
6 months ago
B: I think it could also be A, a Deed of Appointment of a Consultant.
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Lisbeth
6 months ago
A: I agree with you, D seems like the most likely option.
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