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CIPS L5M3 Exam - Topic 2 Question 52 Discussion

Actual exam question for CIPS's L5M3 exam
Question #: 52
Topic #: 2
[All L5M3 Questions]

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

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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 Kanisha at Jun 13, 2025, 11:39 PM

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Nicholle
2 months ago
A and E are true, but B is a misconception.
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Teri
2 months ago
I disagree with B, it’s not about punishment.
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Paola
2 months ago
A and C are definitely true!
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Corrina
3 months ago
E is spot on, you can't exclude negligence!
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Aleta
3 months ago
Surprised to see D, is that really how it works?
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Rosalia
3 months ago
I vaguely recall something about negligence and liability; E seems like it could be true since you can't exclude that.
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Eliz
3 months ago
C sounds correct because liability is definitely about legal responsibility, but I need to double-check that.
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Katheryn
4 months ago
I'm not entirely sure, but I feel like the goal of a liability clause isn't to punish, so B seems off to me.
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Lashaun
4 months ago
I remember that exclusions in liability clauses should be clearly defined, so I think A might be true.
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Weldon
4 months ago
I remember from my contracts class that liability can't always be excluded, even with insurance. I'll make sure to mark that one as false.
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Mickie
4 months ago
The goal is to limit liability, not punish the contractor, so that one's definitely false. I think the other 4 are all potentially true, but I'll double-check to be sure.
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Oliva
4 months ago
Okay, let's see. I know liability is about legal responsibility, so that one's probably true. The others I'm not as sure about - I'll have to read them over again.
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Denae
4 months ago
Hmm, I'm a bit unsure about this one. I'll need to think carefully about the differences between the statements to pick the right 3.
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Josephine
5 months ago
This seems like a pretty straightforward question. I'm confident I can identify the 3 true statements about liability clauses.
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Yesenia
7 months ago
D is just plain wrong. Liability can be limited regardless of insurance coverage. A, C, and E are the clear winners here.
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Erasmo
5 months ago
E) liability cannot be excluded for injury resulting from negligence
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Stanton
7 months ago
C) liability is a legal responsibility
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Lorriane
7 months ago
A) exclusions should be narrowly defined and clearly state which types of liabilities are excluded
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Wynell
7 months ago
Haha, B is a joke, right? The liability clause is not meant to be a revenge plot against the contractor. A, C, and E are the way to go.
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Grover
7 months ago
This exam question is a no-brainer! A, C, and E are the only logical choices. Liability is not about punishment, it's about accountability.
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Soledad
6 months ago
E) liability cannot be excluded for injury resulting from negligence
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Soledad
6 months ago
C) liability is a legal responsibility
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Soledad
7 months ago
A) exclusions should be narrowly defined and clearly state which types of liabilities are excluded
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Gayla
7 months ago
E) liability cannot be excluded for injury resulting from negligence
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Leah
7 months ago
C) liability is a legal responsibility
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Roselle
7 months ago
A) exclusions should be narrowly defined and clearly state which types of liabilities are excluded
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Cora
8 months ago
I'm not sure about B. Punishing the contractor doesn't seem like the main goal of a liability clause.
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Audra
8 months ago
I agree with Hollis. A, C, and E make sense because liability should be clearly defined and cannot be excluded for negligence.
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Hollis
8 months ago
I think A, C, and E are true.
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Halina
9 months ago
A, C, and E are correct. Liability is a legal responsibility, and exclusions should be narrowly defined to avoid ambiguity.
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Annita
7 months ago
E) liability cannot be excluded for injury resulting from negligence
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Toi
8 months ago
C) liability is a legal responsibility
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Fausto
8 months ago
A) exclusions should be narrowly defined and clearly state which types of liabilities are excluded
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