CIPS L5M3 Exam - Topic 2 Question 62 Discussion

Actual exam question for CIPS's L5M3 exam

Question #: 62
Topic #: 2

[All L5M3 Questions]

Tutu Incorporated has a contract with a software company to provide their IT software. They want to ensure that the supplier pays compensation if there are any issues with service (e.g. the software doesn't work for a day). Which two items would Tutu Incorporated need to include in the contract?

Aunliquidated damages

Bletter of credit

Cservice level agreement

Dservice credit

Einsurance

Show Suggested Answer

Suggested Answer: C, D

They should include service credits and a service level agreement. Service Credits allow the buyer to claim back if the service drops below an agreed standard. That standard needs to be clearly out-lined in an SLA. See p.31 for more details

by Walton at Mar 07, 2026, 02:20 PM

Limited Time Offer

25%

Off

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

Contribute your Thoughts:

Submit Cancel

Currently there are no comments in this discussion, be the first to comment!