CIPS Exam L5M3 Topic 2 Question 42 Discussion

Actual exam question for CIPS's L5M3 exam

Question #: 42
Topic #: 2

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 Melodie at Oct 19, 2024, 10:50 AM

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21 days ago

I think option C is the correct answer. The purpose of damages is to put the innocent party back in the position they would have been in if the contract had been performed as expected.

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Sean

2 days ago

Yes, damages are meant to make the innocent party whole again after a breach of contract.

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Laura

10 days ago

That makes sense. It's important for the innocent party to be compensated for any losses they incurred.

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Alpha

14 days ago

I agree, option C is correct. Damages aim to position the innocent party as if the contract was performed as expected.

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