Practice L5M3 Exam Online

Question 1

Sarah is a baker and orders free-range eggs from a local supplier which she uses to make cakes. There is a contract in place which included a specification that states that the eggs must be free-range. One day the supplier delivers eggs which Sarah uses in the cakes. Later she discovered that these were not free-range. Sarah believes that the supplier has broken the contract. Is this true?

A : - this is a breach of a condition

B : - this is a fundamental breach

C : - the specification is not a contract document

D : - there has been a breach in a warranty

Answer: D

Question 2

Terry's Toys is a Toy Manufacturer who has an agreement to provide Toys to an online retailer. The retailer has ordered 500 toys from Terry and Terry has incurred costs of £3000 manufacturing the toys. Halfway through production the retailer calls Terry to cancel the order. Terry reads through the contract and sees a liquidated damages clause of £1000. What should Terry do?

A : rry can apply to the court to increase the liquidated damages to £3000

B : rry can sue the retailer for the additional costs incurred above the liquidated damages

C : rry can deliver the toys as agreed as there is a contract in place

D : rry can do nothing and must pay the additional £2000 out of his own pocket

Answer: D

Question 3

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?

A : tigation

B : judication

C : nciliation

D : diation

Answer: B

Question 4

2021-03-31-15-36-11-0cfaf8452dd7dd756d2fb60fe4b41708

Which of the following will you put into box 2?

A : bcontracting

B : putational damage

C : nalty clause

D : nsequential loss

Answer: B

Question 5

2021-04-01-10-29-32-60d4982a051344803c8102c9c6f0c318

Which of the following will you put into box 6?

A : judication

B : bitration

C : diation

D : tigation

Answer: C

Name:	CORE Level 5 Managing Contractual Risk
Exam Code:	L5M3
Certification:	Level 5 Advanced Diploma in Procurement and Supply
Vendor:	CIPS
Total Questions:	122
Last Updated:	Oct 29, 2025

CIPS L5M3 Answers