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CIPS Exam L5M3 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.


Contribute your Thoughts:

Kayleigh
20 days ago
I agree with An. Indemnity is more common in contracts involving intellectual property or services, not just for confidentiality.
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An
25 days ago
I think the answer is D. A confidentiality agreement usually doesn't include indemnity provisions.
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Kenneth
12 days ago
B: I think it could also be A, a Deed of Appointment of a Consultant.
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Lisbeth
14 days ago
A: I agree with you, D seems like the most likely option.
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