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: May 27, 2026

Question #8

Which TWO conflict resolution methods provide certainty of resolution?

A. mediation and litigation

B. arbitration and conciliation

C. adjudication and mediation

D. adjudication and litigation

Discussion 0

Correct Answer: D Vote an answer

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Question #9

Which of the following will you put into box 1?

A. collaborate

B. avoid

C. compete

D. compromise

Discussion 0

Correct Answer: D Vote an answer

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Question #10

A large financial organisation ensures that they have contracts with all of their suppliers. In which instance would indemnity not necessarily form part of the contract?

A. In assignment of intellectual property rights

B. A confidentiality agreement

C. A Deed of Appointment of a Consultant

D. A software licence agreement

Discussion 0

Correct Answer: B Vote an answer

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Question #11

Which of the following statements about adjudication is true?

A. the decision making process can be lengthy and expensive

B. parties are expected to present their cases in person in front of the adjudicator

C. the decision made by the adjudicator is binding and usually communicated within 28 days

D. adjudicators are appointed at random and therefore may not have specific knowledge of the subject matter

Discussion 0

Correct Answer: C Vote an answer

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Question #12

If a party is to 'repudiate' a contract, what does this mean?

A. the party indicates they no longer intend to fulfil their contractual obligations, usually in response to a breach

B. the party is cancelling the contract as it is no longer needed

C. the party gives notice that they anticipate that they will not be able to fulfil their future obligations

D. the party is using the break-clause to end the contract

Discussion 0

Correct Answer: A Vote an answer

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Question #13

Which of these statements about mediation is true? Select TWO

A. mediation can be used as a stalling tactic

B. mediation produces legal precedents

C. mediation is flexible

D. mediation involves a third party who makes a judgement on the issue

E. mediation is expensive

Discussion 0

Correct Answer: A,C Vote an answer

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Question #14

A buyer and supplier have a contract and the supplier has committed a major breach. However, as they are the sole supplier to the buyer, the buyer has decided not to terminate the contract and instead to work with the supplier to remedy the situation. What is this called?

A. assigning liability

B. conflict resolution

C. awarding damages

D. affirmation of the contract

Discussion 0

Correct Answer: D Vote an answer

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