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 Oct. 11, 2026 (see below)
Jenny has received a written offer from a supplier. She emails them to clarify if they can do next day delivery. The supplier does not reply. The next day Jenny makes the payment. Has a contract been formed?
Yes- the supplier made an offer and Jenny accepted it by making a payment is the correct answer. The other three options are incorrect: 'yes- a counter offer has been made' = there is no counter-offer made in this example - a clarification is not a counter-offer / 'no- the clarification constitutes a conditional acceptance' = clarifications are not conditional acceptance / 'no- a contract has not been signed' = there doesn't need to be a signed document- acceptance can be through performance. Issuing the payment would be considered acceptance via performance. See p 2-12 for more information on conditional acceptance, counter offers and acceptance of offers.
Fishfingers Ltd has a contract with a supplier of cod. When the contract was set up it was not known how important specific delivery times would be for the arrival of the fish. After several months it has now become apparent that delivering the fish within 3 hours of them being caught is fundamental to the contract as delayed delivery results in poorer quality Fish Fingers. When the contract was set up what was the delivery times?
An Innominate Term is the correct answer. At the time the contract was written, we didn't know how important the delivery time was - therefore it wasn't a condition or a warranty- it was an innominate term. An innominate term is a term that is difficult to classify at the time of drafting a contract. A time is of the essence clause would be a good thing to include in this contract now that we know how important the delivery times are. For more information on Conditions, Warranties and Innominate Terms see p. 43
Dianne has a loan agreement which contains a clause for default. What does a clause for default imply?
A Clause for Default 'allows the lender to demand full payment of the outstanding balance'. See p.102. And always read the small print before you sign a loan agreement :)
Fruity McFruitFace is an exporter of fruit. Which of the following payment terms would be most advantageous for it?
Exporters prefer advance payment - this puts the risk with the importer / buyer. There's a table of these four terms on p.36. An importer would prefer an open account arrangements. The other two options are in the middle and the risk is more equally split between the two parties.
Which of the following would not be considered acceptance of a contract term?
Silence is not acceptance. Acceptance can be in writing, verbal or implied by conduct. The three other options are ways in which a contract could be accepted by conduct. See p.8 of the study guide
- Select Question Types you want
- Set your Desired Pass Percentage
- Allocate Time (Hours : Minutes)
- Create Multiple Practice tests with Limited Questions
- Customer Support
Jeffrey Nguyen
23 days agoSarah Perez
1 month agoMelissa Moore
2 months agoMichael Jackson
2 months agoRachel Martinez
3 months agoMaria Murphy
3 months agoJoseph Garcia
4 months agoMaria Roberts
4 months agoPaul Torres
5 months agoChristopher Scott
5 months agoCynthia Harris
6 months agoJason Cook
5 months agoSteven Peterson
5 months agoStephanie Carter
6 months agoGary Mitchell
5 months agoAdam Reed
5 months agoTruman
6 months agoAmalia
7 months agoMendy
7 months agoWillie
7 months agoValentin
7 months agoClarence
8 months agoChara
8 months agoRobt
8 months agoCarin
8 months agoLera
9 months agoIn
9 months agoDaron
9 months agoAshlyn
9 months agoPrecious
10 months agoMoon
10 months agoGalen
10 months agoSalome
10 months agoCarmen
11 months agoKatie
11 months agoEdelmira
11 months agoGerald
11 months agoIsaiah
12 months agoKimbery
12 months agoGlynda
1 year agoAhmed
1 year agoMelvin
1 year agoHuey
1 year agoRodrigo
1 year agoLeandro
1 year agoAmos
1 year agoCarlton
1 year agoJospeh
1 year agoLaurel
1 year agoStevie
1 year agoJohana
1 year agoTammi
1 year agoElli
1 year agoDaisy
2 years agoStevie
2 years agoArtie
2 years agoLaurene
2 years agoSalina
2 years agoAnnamae
2 years agoDierdre
2 years agoMargurite
2 years agoSolange
2 years agoIra
2 years agoKenny
2 years agoRachael
2 years agoMickie
2 years agoTamekia
2 years agoGladys
2 years agoCarey
2 years agoMyra
2 years agoKate
2 years agoVernell
2 years agoLenny
2 years agoNana
2 years agoWillard
2 years agoKathrine
2 years agoIzetta
2 years agoBonita
2 years agoCharolette
2 years agoColette
2 years agoChu
2 years agoAvery
2 years agoHoward
2 years agoOsvaldo
2 years agoRenea
2 years agoKarima
2 years agoArminda
2 years agoMeghann
2 years agoJoanna
2 years ago