CIPS Exam L5M3 Topic 1 Question 29 Discussion

Actual exam question for CIPS's L5M3 exam

Question #: 29
Topic #: 1

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 Ronny at May 30, 2024, 09:05 AM

Limited Time Offer

25%

Off

Get Premium L5M3 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Paola

6 months ago

Wow, these options are a bit of a legal minefield, huh? Guess you can't just wing it when it comes to contract damages!

upvoted 0 times

Adolph

5 months ago

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

upvoted 0 times

...

Hermila

5 months ago

True, it's important to understand the legal implications of contract damages.

upvoted 0 times

...

Amos

5 months ago

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

upvoted 0 times

...

Hermila

5 months ago

A) damages are limited to what is stated within the contract

upvoted 0 times

...

Casie

6 months ago

D is just plain wrong. Damages are not about 'compensating for errors' - it's about restoring the innocent party's position.

upvoted 0 times

...

Ammie

6 months ago

I agree with C. The whole point of damages is to compensate the innocent party, not just arbitrarily decide based on the contract's wording.

upvoted 0 times

...

Dorcas

6 months ago

B seems like a cop-out. Damages should be clearly defined, not decided through some vague 'conflict resolution'.

upvoted 0 times

Starr

5 months ago

D) damages attempt to compensate the innocent party for errors made by the offending party

upvoted 0 times

...

Corrina

5 months ago

A) damages are limited to what is stated within the contract

upvoted 0 times

...

Kendra

6 months ago

I think the correct answer is C. Damages should aim to put the innocent party back in the position they would have been in if the contract had been properly performed.

upvoted 0 times