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Overall, the CIPS L5M3: Managing Contractual Risk exam is a valuable qualification that can help procurement professionals to enhance their knowledge and skills in contract management, reduce the risk of contractual disputes, and improve their overall performance in the workplace.

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CIPS Managing Contractual Risk Sample Questions (Q41-Q46):

NEW QUESTION # 41
Molly is a wedding planner who has just set up as a sole-trader. She has a meeting with a po-tential couple to organise their wedding. The couple is extremely risk adverse and have asked Molly to email them a copy of her insurances. Which insurances should Molly send? Select TWO

A. Products Liability Insurance
B. Professional Indemnity Insurance
C. Employers Liability Insurance
D. Public Liability Insurance

Answer: B,D

Explanation:
The correct answers are indemnity insurance and public liability insurance. Molly doesn't have any products so this wouldn't be required- she's a consultant. As a sole-trader she doesn't have employees so doesn't need Employer's Liability Insurance. The book does not go into much detail about types of insurances - but this is a known exam topic. So if you aren't confident on these four types of insurance and when you'd expect a supplier to have them - do some extra research before the exam. Insurance types are briefly mentioned on p. 25

NEW QUESTION # 42
An exchange of written documents between a buyer and supplier, each detailing their own Terms and Conditions is known as the Battle of the Forms. Who generally wins the Battle?

A. The party who issued the last document
B. The party who commits a breach
C. The party who issued the first document
D. The party with the greatest liability

Answer: A

Explanation:
The Battle of The forms is won by the party who sends the last form. This is referred to in the study guide as 'the last shot wins'

NEW QUESTION # 43
An agreement in which an organisation is not accountable for any damages that occur during a contract is known as what?

A. limited liability
B. liquidated damages
C. waiver of subrogation
D. hold harmless agreement

Answer: D

Explanation:
This is a Hold Harmless Agreement and the definition is given on p. 26. A Waiver of Subrogation is a related term which stops an insurance firm claiming money back from someone in the contract - see p.26 for more info.

NEW QUESTION # 44
Which of the following are advantages to seeking a solution to conflict via litigation?

A. The process is quick and cost-effective
B. There is no confidentiality
C. the process provides certainty that an outcome will be reached
D. The decision can be made by someone who isn't an expert in their field.

Answer: C

Explanation:
The correct answer is 1 'the process provides certainty that an outcome will be reached'. Options 2 and 3 are true statements but they are not advantages of litigation, they are disadvantages. Option 4 is false - litigation is a long and costly process. See p. 85 for more information on litigation

NEW QUESTION # 45
Which of the following is a source of breach in a contract?

A. negligence
B. force majeure
C. liability
D. warranty

Answer: A

Explanation:
Negligence can be a source of a breach. P.42

NEW QUESTION # 46
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