CIPS Exam L5M3 Topic 1 Question 24 Discussion

Actual exam question for CIPS's L5M3 exam

Question #: 24
Topic #: 1

[All L5M3 Questions]

When assessing damages caused by a breach, which of the following statements is true?

Adamages are limited to what is stated within the contract

Bdamages can be difficult to assess before a breach has occurred and therefore should be decided through conflict resolution

Cdamages attempt to position the innocent party in the position that they would have been in had the contract been performed as expected

Ddamages attempt to compensate the innocent party for errors made by the offending party

Show Suggested Answer

Suggested Answer: C

The correct answer is: 'damages attempt to position the innocent party in the position that they would have been had the contract been performed as expected'. This is a quote from p. 121 Option1 is incorrect as unliquidated damages aren't stated in a contract. Option 2 is incorrect because liquidated damages are an assessment of damages before a breach. Option 4 is incorrect because not all breaches are caused by errors (they can be caused by negligence or the offending party withholding something).

by France at Apr 08, 2024, 09:40 PM

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Merlyn

8 months ago

I think all of the options sound plausible, but I lean towards B) damages can be difficult to assess before a breach has occurred and therefore should be decided through conflict resolution. It just seems more practical to me.

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Alaine

8 months ago

I've heard different opinions on this. Some say it's A) damages are limited to what is stated within the contract. I'm not sure though.

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Rolande

8 months ago

I disagree, I believe the answer is D) damages attempt to compensate the innocent party for errors made by the offending party. That just seems more fair to me.

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Bulah

9 months ago

I think the correct answer is C) damages attempt to position the innocent party in the position that they would have been in had the contract been performed as expected. It just makes sense to me.

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Barb

9 months ago

I chose option A because it makes sense to limit damages to what is stated in the contract for clarity and fairness.

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Moira

9 months ago

I'm not sure which one is the correct answer. Can someone explain their rationale behind their choice?

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Mozell

9 months ago

I think damages can be difficult to assess before a breach has occurred and should be decided through conflict resolution.

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Rashad

10 months ago

I agree with User 2. It's about compensating the innocent party for errors made by the offending party.

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Sherill

10 months ago

I disagree. I believe damages attempt to position the innocent party in the position that they would have been in had the contract been performed as expected.

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Elise

10 months ago

I think when assessing damages caused by a breach, damages are limited to what is stated within the contract.

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Lamar

11 months ago

Hmm, I'm not so sure about that. Isn't it better to have a clear, pre-determined plan for damages instead of leaving it up to the courts?

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Laurel

11 months ago

True, but that's why we have courts and conflict resolution, right? They can figure out the appropriate damages after the fact.

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Cordelia

11 months ago

I don't know, guys. Option B also makes sense. Assessing damages can be really difficult before a breach even happens.

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Dalene

9 months ago

I think Option B is also important because assessing damages can be tricky.

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Tori

9 months ago

But Option A is clear that damages are limited to what's in the contract.

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Felicitas

9 months ago

Option C is more about compensating the innocent party for the breach.

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Sharmaine

11 months ago

Exactly! C is the way to go. The damages should compensate the innocent party, not just stick to what's written in the contract.

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Peggie

11 months ago

I'm leaning towards C. The whole point of damages is to put the innocent party back in the position they would have been in if the contract was properly performed, right?

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Gregoria

11 months ago

This is a tricky question. I'm not sure if I should go with option A or C. What do you all think?

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