CIPS L4M3 Commercial Contracting Exam Practice Test

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Total 189 questions

Question 1

Which of the following is the most suitable model contract for car lift manufacturing?

Answer : C

Question 2

The cost in cost reimbursable contract is...?

Answer : A

Question 3

Since services are intangible, so KPIs for services must be qualitative in all circumstances. Is this statement correct?

Answer : B

Question 4

Which of the following are typically included in an SLA? Select TWO that apply:

Answer : B, C

Question 5

Cleveland Insurance (Cleveland) offers a range of insurance services. The main software used in the call centre is a customer relationship management (CRM) system. Cleveland perceived an urgent need to replace the existing CRM system to deal with the increasing number of customers and services.

Urgent Digital Ltd (Digital) is one of the bidders of Cleveland's ITT. Its bid team is led by Hank Irvine, its technical director. Hank realises that winning the Cleveland contract (valued at approximately 50M) will enhance his career. During discussions with Cleveland, Hank offers certain assurances regarding timescales for the project. He has not carried out any investigations into the viability of the timescales. Hank has little idea whether the timescales can be met.

Cleveland decides that Digital's bid meets with its requirements, especially given the assurances in timescale offered by Hank, and decides to proceed with it, subject to a formal contract. Eventually, a formal contract is signed by both parties. The initial assurances given by Hank about the timing of the project are never going to be achieved and are at best grossly exaggerated.

Hank's pre-contractual assurance is most likely to be an example of which of the following?

Answer : C

Question 6

Michelle contacts Hannah and asks her if she would be interested in purchasing her car for 2000. Hannah immediately takes 2000 to Michelle and says she wants to buy the car. Michelle subsequently refuses to proceed. Has the contract between Michelle and Hannah been made?

Answer : A

Question 7

Which of the following statements is FALSE on contracts for the leasing of assets?

Answer : C

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Total 189 questions