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CIPS Managing Contractual Risk Sample Questions (Q21-Q26):

NEW QUESTION # 21
Which of the following will you put into box 4?

A. specification
B. payment terms
C. anticipatory breach
D. fundamental breach

Answer: A

Explanation:
The correct answers are as follows:

This is the specification as it talks about types of fabric.

NEW QUESTION # 22
Which of the following is a source of breach in a contract?

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

Answer: A

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

NEW QUESTION # 23
Restitution Measures are an award which seeks to return the value of a benefit which has been seen to be unfairly received. Which of the following statements about Restitution Measures is TRUE? Select TWO

A. restitution damages are not limited to pre-agreed levels stated in the contract
B. restitution damages are based on how much was gained by the breaching party as a re-sult of the breach
C. restitution damages intend to return the innocent party to the position they were in be-fore the contract
D. restitution damages considers the position of the breaching party before the contract

Answer: B,C

Explanation:
The correct answers are 1 and 3. These are taken from p. 124. Option 2 is incorrect - this is the definition of reliance damages. Option 4 is also incorrect- restitution damages are limited to pre-agreed levels stated in the contract.

NEW QUESTION # 24
Which of the following will you put into box 6?

A. Negotiation
B. Mediation
C. Arbitration
D. Litigation

Answer: D

Explanation:
The correct answers are as follows:

Litigation is the only resolution method which goes 'through the courts'. Therefore this is the correct answer

NEW QUESTION # 25
Which of the following will you put into box 3?

A. specification
B. fundamental breach
C. payment terms
D. anticipatory breach

Answer: B

Explanation:
The correct answers are as follows:

This is a fundamental breach. The key here is the scenario says 'huge issue'. Out of the four scenarios this one is the most important / serious and therefore will be the fundamental breach.

NEW QUESTION # 26
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