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CIPS Level 5 Advanced Diploma in Procurement and Supply Managing Contractual Risk

Managing Contractual Risk

Last Update Nov 22, 2024
Total Questions : 120

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Questions 2

Lisa has a contract with an internet provider and the contract stated the need for Wi-Fi to be online 100% of the time. The Wi-Fi has only been available 97% of the time. In order for Lisa to claim compensation from her internet provider, which of the following would need to be present in the contract?

Options:

change control

liability clause

service credits

subcontracting

Discussion 0

Questions 3

Verity Fashion is a clothing manufacturer and has an order to create 10,000 pairs of flipflops for a retailer for the summer. The order was placed over the phone in February. The order has been completed and has been boxed up ready for delivery. The retailer calls Verity Fashion in June and says that the order is no longer required. What action can Verity Fashion take?

Options:

sue for damages as the flip flops have already been made and this incurred costs

nothing- there is no written contract in place

subcontract the manufacturing of the flipflops to a third party

claim on insurance

Discussion 0

Questions 4

Harry is negotiating a contract for a new IT system for his business. He is investing heavily in the system and wants the system to be able to provide the services he requires for the next 10 years. However he is aware that technology is changing quickly and would like to include a clause in the contract to ensure that the system he is purchasing is useable for the next 10 years. What should Harry include in the contract?

Options:

limitation of liability

service credits

benchmarking

change control

Discussion 0

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Questions 5

Mark is a consultant who works with building managers and advises them on how to make their buildings safer. What type of insurance should Mark have?

Options:

Public Liability

Product Liability

Professional Indemnity

Property Insurance

Discussion 0

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