CIPS L5M3 Exam - Topic 2 Question 47 Discussion

Actual exam question for CIPS's L5M3 exam

Question #: 47
Topic #: 2

[All L5M3 Questions]

An agreement in which an organisation is not accountable for any damages that occur during a contract is known as what?

Alimited liability

Bliquidated damages

Chold harmless agreement

Dwaiver of subrogation

Show Suggested Answer

Suggested Answer: B

The correct answers are as follows:

This is arbitration as it involves a panel.

by Amie at Feb 06, 2025, 06:46 AM

Limited Time Offer

25%

Off

Get Premium L5M3 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Marta

7 months ago

Yup, definitely a hold harmless agreement!

upvoted 0 times

...

Rosalind

8 months ago

Limited liability is different, right?

upvoted 0 times

...

Kaycee

8 months ago

Wait, are you sure? Sounds a bit sketchy.

upvoted 0 times

...

Leslie

8 months ago

Totally agree, that's the right term!

upvoted 0 times

...

Marilynn

8 months ago

It's called a hold harmless agreement.

upvoted 0 times

...

Vallie

9 months ago

I’m confused between hold harmless and waiver of subrogation. They sound similar, but I can't remember the details!

upvoted 0 times

...

Oretha

9 months ago

I’m leaning towards option C, but I also recall something about waivers in a different context.

upvoted 0 times

...

Janae

9 months ago

I remember practicing a question about liability agreements, and I feel like limited liability was mentioned there.

upvoted 0 times

...

Tarra

9 months ago

I think it might be a hold harmless agreement, but I'm not completely sure.

upvoted 0 times

...

Yolando

9 months ago

Okay, let me break this down. An agreement where the organization isn't liable for damages... I'm going to go with C, a hold harmless agreement.

upvoted 0 times

...

Gerardo

9 months ago

The key here is understanding what "not accountable for any damages" means. I'm leaning towards C, a hold harmless agreement, but I'll double-check the other options to be sure.

upvoted 0 times

...

Ashton

9 months ago

Hmm, I'm not too sure about this one. I'll have to think it through carefully to make sure I get the right answer.

upvoted 0 times

...

Caren

9 months ago

I think this is a hold harmless agreement, where the organization is not held accountable for any damages during the contract.

upvoted 0 times

...

Ngoc

1 year ago

B) liquidated damages? More like 'liquidated my brain cells' trying to figure this one out. Hold harmless agreement FTW!

upvoted 0 times

Luisa

1 year ago

D) waiver of subrogation

upvoted 0 times

...

Tracey

1 year ago

C) hold harmless agreement

upvoted 0 times

...

Yuki

1 year ago

A) limited liability

upvoted 0 times

...

Arlene

1 year ago

D) waiver of subrogation? Really? That doesn't sound like it fits the description at all. This is a tricky one!

upvoted 0 times

Margret

1 year ago

B) liquidated damages

upvoted 0 times

...

Aja

1 year ago

C) hold harmless agreement

upvoted 0 times

...

Blondell

1 year ago

A) limited liability

upvoted 0 times

...

Thea

1 year ago

Hmm, I was leaning towards B) liquidated damages, but I think you're right, Valentin. A hold harmless agreement is the way to go.

upvoted 0 times

Kimbery

1 year ago

Yes, it protects the organisation from being held responsible for damages.

upvoted 0 times

...

Gail

1 year ago

I agree, a hold harmless agreement is the best option.

upvoted 0 times

...

Alpha

1 year ago

I'm leaning towards B) liquidated damages, as it specifies the amount of damages in advance.

upvoted 0 times

...

Valentin

1 year ago

C) hold harmless agreement - This seems like the correct answer, as it describes an agreement where the organization is not held accountable for any damages.

upvoted 0 times