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CIPS Exam L6M5 Topic 2 Question 9 Discussion
Actual exam question for
CIPS's
L6M5 exam
Question #: 9
Topic #: 2
[All L6M5 Questions]
Topic #: 2
Cyril Engineering entered into a contract with Dojo Ltd for electrical engineering services to a power station.
The contract was successful for two years, but Cyril Engineering failed to fulfill obligations recently.
Q: What is this situation known as?
Answer Options:
Suggested Answer:
C
Failure to meet contractual obligations is classified as Default (p.123).
Consequential Loss (A) refers to indirect financial loss due to contract failure.
Damages (B) are legal remedies for breaches.
Direct Loss (D) relates to immediate financial impact, but default is the correct term for a failure to meet obligations. [P.123]
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