CIPS Exam L5M3 Topic 1 Question 28 Discussion

Actual exam question for CIPS's L5M3 exam

Question #: 28
Topic #: 1

[All L5M3 Questions]

Parky Parks Ltd has a contract with Slides R Us for the provision of children's playground equipment. The contract contains a clause for liquidated damages and puts the figure at 500k. Which of the following statements is correct? Select TWO

ALiquidated damages needs to be a 100% accurate figure

BIf damages exceed 500k Parky Parks can apply to the courts to get Slides R Us to pay above this amount

CDamages under the amount of 500k are not required to be paid to Parky Parks

Dliquidated damages is a genuine estimate of loss

Ecosts incurred above 500k will be covered by Parky Parks Ltd

Show Suggested Answer

Suggested Answer: D

'restitution damages cannot be mitigated by the actions of the innocent party' is the untrue state-ment out of these four. The general principle of Restitution Damages is that the innocent party is expected to be proactive in mitigating the consequences of any breach and should not allow costs to spiral out of control. See p. 124

by Gayla at May 18, 2024, 03:02 PM

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Danilo

8 hours ago

I think the correct statements are D and E.

upvoted 0 times

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