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CIPS L5M3 Exam Questions

Exam Name: Managing Contractual Risk
Exam Code: L5M3
Related Certification(s): CIPS Level 5 Advanced Diploma in Procurement and Supply Certification
Certification Provider: CIPS
Number of L5M3 practice questions in our database: 120 (updated: Feb. 27, 2025)
Expected L5M3 Exam Topics, as suggested by CIPS :
  • Topic 1: Understand the legal and process issues relating to the formation of contracts: Implications of contractual documentation on overall risk and the formation of contracts and associated risks are covered in this topic of the CIPS Managing Contractual Risk test. Procurement and supply chain professionals get knowledge about legal issues in contract formation in this topic.
  • Topic 2: Understand the impacts of breach of contract and coping strategies and provisions that are available: Procurement professionals who attempt the CIPS Level 5 Advanced Diploma in Procurement and Supply exam cover different levels of contract breach, their impact, and tools for resolution in this topic. It focuses on concepts that are essential for supply chain professionals for effective management of contractual relationships.
  • Topic 3: Understand the legal implications of contractual nonconformance in procurement and supply: This topic delves into the remedies available for non-performance in a procurement context, as well as the legal implications that may arise from the termination of contractual relationships. The CIPS L5M3 exam comprehensively tests abilities of procurement professionals to analyze and compare these critical aspects of contract management.
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Laurene

4 days ago
Exam tested knowledge on change management processes in contracts. Review procedures for handling scope changes and associated risks.
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Salina

6 days ago
Nailed the CIPS exam! Pass4Success's questions were key to my success.
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Annamae

20 days ago
Question on confidentiality agreements caught me off guard. Understand their importance in managing information-related risks in contracts.
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Dierdre

1 months ago
Had to explain the concept of frustration in contracts. Study its legal implications and how it differs from force majeure.
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Margurite

1 months ago
CIPS certification achieved! Grateful for Pass4Success's relevant practice materials.
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Solange

1 months ago
Thrilled to have passed the CIPS Managing Contractual Risk exam! Pass4Success practice questions were a great help. One question that stumped me was about breach of contract, asking, 'What are the common defenses against a breach of contract claim?' I had to recall terms like impossibility, frustration, and misrepresentation.
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Ira

2 months ago
Exam included a section on contract termination clauses. Know the different types and their implications for risk management.
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Kenny

2 months ago
Question on risk transfer techniques stumped me. Review insurance, bonds, and guarantees as methods of transferring contractual risks.
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Rachael

2 months ago
Success on the CIPS exam! Pass4Success helped me prepare in record time.
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Mickie

2 months ago
I passed the CIPS Managing Contractual Risk exam, and I owe a lot to the Pass4Success practice questions. One challenging question was about the formation of contracts, asking, 'What is the significance of mutual assent in contract formation?' I had to think about the importance of both parties agreeing to the terms.
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Tamekia

3 months ago
Encountered a scenario on intellectual property rights in contracts. Understand how to protect IP and manage associated risks. Pass4Success practice exams were a lifesaver!
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Gladys

3 months ago
I’m happy to report that I passed the CIPS Managing Contractual Risk exam! The Pass4Success practice questions were invaluable. A tricky question was about the legal implications of contractual nonconformance, asking, 'What steps can be taken to address nonconformance in a procurement contract?' I had to consider corrective actions and penalties.
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Carey

3 months ago
Exam tested knowledge on limitation of liability clauses. Study common types and their implications for risk allocation between parties.
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Myra

3 months ago
Passed with flying colors! Pass4Success questions were incredibly similar to the actual exam.
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Kate

3 months ago
Just passed the CIPS Managing Contractual Risk exam, and Pass4Success practice questions were a big help. One question that I found difficult was about breach of contract, asking, 'What are the different types of breaches and their implications in procurement?' I had to differentiate between material and minor breaches.
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Vernell

4 months ago
Question on dispute resolution mechanisms popped up. Know the pros and cons of arbitration, mediation, and litigation in contractual disputes.
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Lenny

4 months ago
I’m excited to share that I passed the CIPS Managing Contractual Risk exam! The Pass4Success practice questions were incredibly helpful. One question that caught me off guard was about the formation of contracts, specifically, 'What role does consideration play in the enforceability of a contract?' I had to think about the necessity of something of value being exchanged.
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Nana

4 months ago
CIPS certified! Pass4Success made studying efficient and effective.
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Willard

4 months ago
Had to analyze a complex supply chain contract. Focus on identifying and mitigating risks at each stage of the supply chain. Pass4Success materials were spot on!
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Kathrine

4 months ago
Passing the CIPS Managing Contractual Risk exam was no small feat, but Pass4Success practice questions made it manageable. A question that puzzled me was related to the legal implications of contractual nonconformance, asking, 'How can a procurement professional mitigate risks associated with supplier nonconformance?' I had to consider various strategies like audits and performance bonds.
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Izetta

5 months ago
Surprise question on the differences between warranties and indemnities. Be prepared to explain their purposes and limitations in contract risk management.
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Bonita

5 months ago
I’m thrilled to announce that I passed the CIPS Managing Contractual Risk exam! The Pass4Success practice questions were a lifesaver. One challenging question was about breach of contract, asking, 'What are the possible remedies available for a breach of contract in procurement?' I had to recall terms like damages, specific performance, and rescission.
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Charolette

5 months ago
Aced the CIPS exam! Pass4Success materials were a lifesaver for quick prep.
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Colette

5 months ago
Exam included a tricky case study on liquidated damages. Know how to calculate and apply them in various contract situations. Thanks Pass4Success for the practice questions!
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Chu

5 months ago
Successfully passing the CIPS Managing Contractual Risk exam was a huge relief, thanks to Pass4Success practice questions. There was a tricky question on the formation of contracts that asked, 'What are the essential elements required for a contract to be legally binding?' I had to think hard about offer, acceptance, consideration, and intention to create legal relations.
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Avery

6 months ago
Just passed the CIPS Certified: Managing Contractual Risk exam! Question on force majeure clauses caught me off guard. Make sure to study different scenarios where these clauses apply.
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Howard

6 months ago
I just passed the CIPS Managing Contractual Risk exam, and I couldn't have done it without the Pass4Success practice questions. One question that really stumped me was about the legal implications of contractual nonconformance. It asked, 'What are the potential legal consequences if a supplier fails to meet the agreed-upon specifications in a procurement contract?' I wasn't entirely sure of the answer, but I managed to get through it.
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Osvaldo

6 months ago
Just passed the CIPS Managing Contractual Risk exam! Thanks Pass4Success for the spot-on practice questions.
upvoted 0 times
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Renea

7 months ago
Successfully cleared the CIPS Managing Contractual Risk exam! Pass4Success's relevant questions helped me prepare quickly and effectively. Thank you!
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Karima

8 months ago
Thrilled to have passed the CIPS exam! Pass4Success's practice questions were invaluable. Couldn't have done it without their efficient study materials.
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Arminda

8 months ago
Aced the CIPS exam thanks to Pass4Success! Their materials covered all the key topics and really boosted my confidence. Highly recommend!
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Meghann

9 months ago
Pass4Success made prepping for the CIPS Contractual Risk exam a breeze. Passed with flying colors! Grateful for their comprehensive question bank.
upvoted 0 times
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Joanna

10 months ago
Just passed the CIPS Managing Contractual Risk exam! Pass4Success's practice questions were spot-on and saved me tons of study time. Thanks!
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Free CIPS L5M3 Exam Actual Questions

Note: Premium Questions for L5M3 were last updated On Feb. 27, 2025 (see below)

Question #1

Which of the following will you put into box 8?

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Correct Answer: B

The correct answers are as follows:

This is arbitration as it involves a panel.


Question #2

ABC has a contract with its supplier DEF who delivers pasta to ABC's manufacturing plant. DEF has committed a breach and conflict resolution has taken place. The Court has awarded ABC 'specific performance' damages. What could this involve?

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Correct Answer: C

DEF must deliver the pasta required by ABC is the correct answer. Specific performance is when the innocent party is rewarded by receiving what was initially negotiated - in this case the delivery of pasta. It's basically a posh way of saying that the court mandates you to do what the contract says. See p. 129 for information on Specific Performance.


Question #3

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

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Correct 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).


Question #4

ABC has a contract with its supplier DEF who delivers pasta to ABC's manufacturing plant. DEF has committed a breach and conflict resolution has taken place. The Court has awarded ABC 'specific performance' damages. What could this involve?

Reveal Solution Hide Solution
Correct Answer: C

DEF must deliver the pasta required by ABC is the correct answer. Specific performance is when the innocent party is rewarded by receiving what was initially negotiated - in this case the delivery of pasta. It's basically a posh way of saying that the court mandates you to do what the contract says. See p. 129 for information on Specific Performance.


Question #5

Lollypop Manufacturer has a long standing contract with Retailer

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Correct Answer: C

yes- if there is a variation clause and both parties agree. This would usually be written in as a 'price adjustment clause' but if it's not, then it could be agreed and signed by both parties as a 'contract variation'. See p.16 for more details


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