Free CIPS L4M3 Exam Questions

Become CIPS Certified with updated L4M3 exam questions and correct answers

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Total 193 Questions | Updated On: Feb 20, 2025

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Question 1

Sharaton Foods Holding is looking for a vegetable harvesting and packaging system. They use the performance specification in the tendering process. What are the benefits of using this type of specification?

1. Provide opportunities for innovation
2. Potentially limit the competition among the suppliers
3. Require less effort to produce a specification
4. Allow the end user to provide details on technical aspects

A : 1 and 4 only

B : 1 and 3 only

C : 1 and 2 only

D : 2 and 3 only

Answer: B

Question 2

In a contract, both buyer and supplier agreed the lead time is 3 days. The contract also requires that any variation must be made in writing. Then the buyer places an order by phone call and requests delivery the next day, but the supplier delivers on the third day since the order. Can buyer refuse to pay as supplier did not deliver per time?

A : , the supplier delivers within a reasonable time

B : , late delivery is a force majeure event

C : , supplier has shortened lead time to 1 day

D : , the supplier has breached the contract

Answer: A

Question 3

When should liquidated damages clauses be written into a contract?

A : en the breaching party wants to exclude all its liabilities

B : en the innocent party wants to punish the breaching party.

C : en the loss to the innocent party will be either too uncertain or too difficult to calculate.

D : en the court approves the damages amount before the contract is executed.

Answer: C

Question 4

MWB operates serviced offices in central London. Rock entered a contractual licence with MWB to occupy office space in Marble Arch and had accumulated licence fees in arrears. The original licence agreement contained a ‘No Oral Modification’ clause that said: 'All variations to this licence must be agreed, set out in writing and signed on behalf of both parties before they take effect'.
After 6 months, Rock director re-negotiated to extend payment period over phone call and MWB credit controller agreed his proposal. Is this agreement considered as an effective variation to the original licence agreement?

A : , because the mechanism for variation has been set out in the original contract

B : , because parties who agree to altering the original contract orally despite a ‘No Oral Modification’ clause, must have intended to dispense with the clause

C : , because Rock director assumed that the variation was effective and convinced credit controller to believe it

D : , because the credit controller had agreed with Rock director’s proposal

Answer: A

Question 5

Which of the following are reasons why a purchaser wants to embed a subcontracting clause into the main contract? Select TWO that apply:

A : improve supply chain transparency

B : condemn whole liabilities to subcontractors

C : reduce the main contract complexity

D : keep main contractor liable

E : induce the conflicts between the main contractor and subcontractors

Answer: A,D

Page: 1 / 39

Total 193 Questions | Updated On: Feb 20, 2025

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