Pass the CIPS CIPS Level 5 Advanced Diploma in Procurement and Supply L5M3 Questions and answers with CertsForce

Explanation

The correct answer is 3 - 'yes there is a termination clause in the contract'. In this scenario it would be immoral for GoGo Ltd to cancel, but it wouldn't be illegal. They have the right to use the clause that's been put into the contract. It's possible that Reny might sue for damages, but this doesn't prevent GoGo Ltd from cancelling the order (they might be okay with paying the damages). There is a very similar question to this in the exam. Termination clauses are discussed on p.134 - I recommend brushing up on this topic before the exam.

Explanation

The correct answers are as follows:

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This is payment terms. The scenario mentions processing invoices, which is to do with paying the supplier

Explanation

1+3 are correct. Specific Performance tend to go through the courts so this is a lengthy and costly process. Because it's mandated by the courts it means that if the offending party doesn't comply, this is a criminal offence and they can be arrested. Option 2 is incorrect as it is the opposite of option 1. Option 4 is incorrect because there is no need for the innocent party to mitigate any losses. See p. 132 for more information on Specific Performance

Explanation

The correct answers are 1 and 3. These are taken from p. 124. Option 2 is incorrect - this is the definition of reliance damages. Option 4 is also incorrect- restitution damages are limited to pre-agreed levels stated in the contract.

Explanation

The correct answers are as follows:

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This is 'Time is of the Essence' - failure to deliver the food on time will have consequences.

Explanation

The correct answers are as follows:

The answer is compromise as they're seeking a solution that will satisy everyone.