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CIPS L5M3 Exam - Topic 1 Question 66 Discussion

When drafting a liability clause in a contract, which of the following statements are TRUE? Select THREE
A) exclusions should be narrowly defined and clearly state which types of liabilities are excluded and C) liability is a legal responsibility and E) liability cannot be excluded for injury resulting from negligence
B) the goal of the liability clause is to punish the contractor for poor performance
D) liability can only be limited where there is valid insurance

CIPS L5M3 Exam - Topic 1 Question 66 Discussion

Actual exam question for CIPS's L5M3 exam
Question #: 66
Topic #: 1
[All L5M3 Questions]

When drafting a liability clause in a contract, which of the following statements are TRUE? Select THREE

Show Suggested Answer Hide Answer
Suggested Answer: A, C, E

The correct answers are 1, 3 and 5: exclusions should be narrowly defined and clearly state which types of liabilities are excluded, liability is a legal responsibility and liability cannot be excluded for injury resulting from negligence. These are all explained on p. 22. Liability is never there to publish anyone (this is a red herring answer that CIPS like to put into different questions and it's usually the wrong answer - no one should look to publish anyone else). The option 'Liability can only be limited where there is valid insurance' is not true. A contract can state any limitations on liability so long as it's agreed by both parties, they're fair and don't contradict any laws. The thing about not being able to exclude liability regarding personal injury is a Law in the UK.


by Tiffiny at May 12, 2026, 02:31 PM

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Barrie
4 days ago
I think A, C, and E are true.
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Antonette
9 days ago
A, C, and E are the correct answers!
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Dorian
14 days ago
E is spot on, you can't exclude negligence liability.
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Malcolm
19 days ago
Wait, can you really limit liability only with insurance?
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Leonora
25 days ago
I disagree with B, it’s not about punishment.
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Lorita
30 days ago
A and C are definitely true!
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Zena
1 month ago
A, C, and E are the correct answers!
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Winfred
1 month ago
E is spot on, you can’t exclude negligence liability.
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Colene
2 months ago
Wait, can liability really only be limited with insurance? Sounds off.
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Shala
2 months ago
Totally disagree with B, it’s not about punishment.
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Salena
2 months ago
A and C are definitely true!
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Shantell
2 months ago
I think E is also true because you can't just exclude liability for negligence, but I’m not clear on D and how insurance factors in.
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Demetra
2 months ago
I feel like C is a straightforward one since liability is basically about legal responsibilities, right?
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Elbert
2 months ago
I'm not entirely sure about B. I thought the purpose was more about managing risk rather than punishment.
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Ben
4 months ago
I remember discussing how exclusions in liability clauses should be clearly defined, so I think A is definitely true.
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