CIPS L5M3 Actual Free Exam Questions & Community Discussion

Exam Code/Number: L5M3
Exam Name/Title: Managing Contractual Risk
Certification Provider: CIPS
Corresponding Certification: CIPS Level 5 Advanced Diploma in Procurement and Supply

Exam Questions: 118
Updated On: Jul 22, 2026

Question #1

Which of the following will you put into box 7?

A. arbitration

B. mediation

C. adjudication

D. litigation

Discussion 0

Correct Answer: D Vote an answer

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Question #2

Which of the following is a consensual form of dispute resolution?

A. mediation

B. adjudication

C. negotiation

D. litigation

Discussion 0

Correct Answer: A Vote an answer

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Question #3

Which of the following is usually the default method for resolving disputes?

A. conciliation

B. mediation

C. negotiation

D. litigation

Discussion 0

Correct Answer: C Vote an answer

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Question #4

Which of these statements about Guarantees are TRUE? Select 2

A. A Guarantee is a secondary obligation of a contract

B. A guarantee is a promise to repair or replace an item within a defined period of time

C. A guarantor's responsibility is higher than the Principle

D. A guarantor's responsibility cannot be higher than the Principle

Discussion 0

Correct Answer: A,D Vote an answer

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Question #5

Which of the following are advantages to seeking a solution to conflict via litigation?

A. the process provides certainty that an outcome will be reached

B. The process is quick and cost-effective

C. The decision can be made by someone who isn't an expert in their field.

D. There is no confidentiality

Discussion 0

Correct Answer: A Vote an answer

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Question #6

If an innocent party wishes to terminate a contract due to a breach, which of the following is true?

A. only future obligations of the parties are excused and discharged

B. only past obligations of the parties are excused and discharged

C. all obligations of the innocent party are excused and discharged

D. all obligations of the offending party are excused and discharged

Discussion 0

Correct Answer: A Vote an answer

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Question #7

Restitution damages are often calculated before contracts are signed and are clearly stated within a contract. Which of the following statements is not true?

A. restitution damages may leave the breaching party in a worse position than they were in before the contract began

B. restitution damages cannot be mitigated by the actions of the innocent party

C. restitution damages are calculated based on how much the breaching party gained, ra-ther than how much the innocent party lost

D. restitution damages means you are unable to claim for future losses

Discussion 0

Correct Answer: B Vote an answer

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