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CIPS Certification
L5M3 Exam
CIPS.L5M3.v2023-02-06.q39 Dumps

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Question 21

Which of the following would constitute an offer? Select TWO:

A.a display in a shop window
B.an advert on a website
C.an auction
D.a bid on an auction
E.a price proposal that is valid for 14 days

Correct Answer: D,E

Offers include bids on an auction and a price proposal that is valid for 14 days. The other three options are Invitations to Treat. See p.3 for the full list of what constitutes an Invitation to Treat. The tricky thing here is that an auction is an invitation to treat but a bid on an auction is an offer. An auction is an ITT because you're encouraging people to make an offer to you. A bid on the auction is the offer (you offer to buy something at a price you propose).

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Question 22

Which of the following situations would be considered a minor breach of a contract? Select TWO:

A.a painter is contracted to paint a room white but paints it magnolia as there was no white paint available
B.a consultant has given bad advice
C.a zoo orders three baby lions and is given three baby tigers
D.a supplier has breached a non-disclosure agreement
E.A supplier delivers a lorry-load of produce six hours late due to a burst tyre.

Correct Answer: A,D

The correct answers are: 1) the painter using magnolia instead of white, and 5) the supplier who was late on his delivery. These are considered minor breaches because the contract was still fulfilled and it didn't affect the contract in any significant way. In this type of question you have to use logic to deduce the right answer; 2) A consultant giving bad advice would be a major breach - it would be a huge issue, particularly if that advice led to an accident or death. Think about an Architect advising on a type of pillar, and it turns out that pillar can't support the weight of the building. That would be bad. 3) Lions and Tigers are not the same thing - so that would be a pretty fundamental mistake in a contract. 4) Breaching a non-disclosure agreement is usually considered a major breach of a contract (this is mentioned in chapter 2.1). See p. 48 for more information on minor breaches.

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Question 23

A warranty is a minor term of a contract. Is this TRUE?

A.yes- it does not affect the prime benefit
B.yes- it affects the prime benefit of the contract
C.no- a warranty is a fundamental term in a contract
D.no- a warranty is a type of innominate term

Correct Answer: A

The correct answer is 1. The statement is True so the answer needs to start with 'yes'. Therefore options 3 and 4 should be discounted. Option 2 is incorrect a warranty does NOT affect the prime benefit of the contract. See p. 126 for more details on Contractual Warranties and Conditions

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Question 24

Which of the following conflict resolution styles involves a strict timeline and is commonly used within the construction industry?

A.conciliation
B.adjudication
C.arbitration
D.litigation

Correct Answer: B

Adjudication has strict timescales (this is one of the advantages of using this conflict resolution method). It has roots in the construction industry and has been widely used since the 1990s. See p.76 for more information

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Question 25

Which of the following will you put into box 3?

A.Payment Term
B.Time is of the Essence
C.Subcontracting
D.Specification

Correct Answer: D

The correct answers are as follows:

Specifying the food needs to be organic is a 'specification'

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