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CIPS Exam L5M3 Topic 1 Question 45 Discussion

Actual exam question for CIPS's L5M3 exam
Question #: 45
Topic #: 1
[All L5M3 Questions]

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

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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 Desiree at Jan 15, 2025, 01:29 AM

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Jade
20 days ago
Gotta go with C. Restoring the innocent party is the whole point of damages, isn't it? Seems pretty straightforward to me.
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Walton
5 days ago
User 2: Yeah, damages are meant to make things right for the innocent party. C makes the most sense.
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Georgiann
10 days ago
User 1: I agree, C is the correct option. It's about putting the innocent party back in the position they would have been in.
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Sherell
23 days ago
Haha, I'd say option A is the way to go. Damages are whatever the contract says they are - no more, no less!
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Audra
8 days ago
User 2: Yeah, that's true. It's important to stick to what was agreed upon.
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Romana
12 days ago
User 1: I agree, damages are limited to what is stated in the contract.
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Fallon
1 months ago
I'm not sure, but I think damages can also compensate for errors made by the offending party, so maybe D is correct too.
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Roxane
1 months ago
I agree with Giuseppe, damages should position the innocent party as if the contract was performed.
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Giuseppe
1 months ago
I think the answer is C.
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Lisandra
1 months ago
D is my pick. Damages are there to compensate the innocent party for the mistakes made by the other side, plain and simple.
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Winfred
1 months ago
B sounds like the best choice to me. Damages can be really tricky to determine before a breach actually happens, so it's better to work it out through mediation.
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France
27 days ago
A) damages are limited to what is stated within the contract
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Noble
1 months ago
I think option C is the correct answer. Damages aim to restore the innocent party to the position they would have been in if the contract had been properly fulfilled.
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Dalene
17 days ago
I believe damages are limited to what is stated in the contract, so option A is the correct answer.
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Wilda
21 days ago
I think damages should definitely aim to compensate for any losses suffered by the innocent party.
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Queen
1 months ago
I agree, option C is correct. Damages are meant to put the innocent party in the position they would have been in if the contract was fulfilled.
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