Free Preparation Discussions
MENU
CIPS L5M3 Exam Questions
- Topic 1: Understand the legal and process issues relating to the formation of contracts: Implications of contractual documentation on overall risk and the formation of contracts and associated risks are covered in this topic of the CIPS Managing Contractual Risk test. Procurement and supply chain professionals get knowledge about legal issues in contract formation in this topic.
- Topic 2: Understand the impacts of breach of contract and coping strategies and provisions that are available: Procurement professionals who attempt the CIPS Level 5 Advanced Diploma in Procurement and Supply exam cover different levels of contract breach, their impact, and tools for resolution in this topic. It focuses on concepts that are essential for supply chain professionals for effective management of contractual relationships.
- Topic 3: Understand the legal implications of contractual nonconformance in procurement and supply: This topic delves into the remedies available for non-performance in a procurement context, as well as the legal implications that may arise from the termination of contractual relationships. The CIPS L5M3 exam comprehensively tests abilities of procurement professionals to analyze and compare these critical aspects of contract management.
Free CIPS L5M3 Exam Actual Questions
Note: Premium Questions for L5M3 were last updated On Aug. 28, 2025 (see below)
What is a boilerplate clause?
This is #4. This exact definition is given on p.116 under the section 'Giving Notice'
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?
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.
Restitution Measures are an award which seeks to return the value of a benefit which has been seen to be unfairly received. Which of the following statements about Restitution Measures is TRUE? Select TWO
The correct answers are 1 and 3. These are taken from p. 124. Option 2 is incorrect - this is the definition of reliance damages. Option 4 is also incorrect- restitution damages are limited to pre-agreed levels stated in the contract.
Franky B's is a popular restaurant chain which is seeking a resolution to a conflict it has with its supplier of Fried Chicken. It is looking for a dispute resolution that does not involve the court but in which an expert third party will make a binding decision. Which is the most suitable dispute resolution method for Franky B's?
This is Adjudication. The other answers are incorrect- litigation involves the court. Conciliation and mediation do not provide binding decisions. P. 143
When drafting a liability clause in a contract, which of the following statements are TRUE? Select THREE
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.
- Select Question Types you want
- Set your Desired Pass Percentage
- Allocate Time (Hours : Minutes)
- Create Multiple Practice tests with Limited Questions
- Customer Support
Jospeh
2 months agoLaurel
2 months agoStevie
3 months agoJohana
3 months agoTammi
4 months agoElli
4 months agoDaisy
5 months agoStevie
6 months agoArtie
6 months agoLaurene
6 months agoSalina
6 months agoAnnamae
7 months agoDierdre
7 months agoMargurite
7 months agoSolange
8 months agoIra
8 months agoKenny
8 months agoRachael
8 months agoMickie
8 months agoTamekia
9 months agoGladys
9 months agoCarey
9 months agoMyra
9 months agoKate
9 months agoVernell
10 months agoLenny
10 months agoNana
10 months agoWillard
10 months agoKathrine
10 months agoIzetta
11 months agoBonita
11 months agoCharolette
11 months agoColette
11 months agoChu
11 months agoAvery
12 months agoHoward
12 months agoOsvaldo
1 years agoRenea
1 years agoKarima
1 years agoArminda
1 years agoMeghann
1 years agoJoanna
1 years ago