CIPS Commercial Contracting L4M3 Question # 6 Topic 1 Discussion

CIPS Commercial Contracting L4M3 Question # 6 Topic 1 Discussion

L4M3 Exam Topic 1 Question 6 Discussion:
Question #: 6
Topic #: 1

XYZ Ltd is negotiating a long-term supply contract of important parts with a supplier. Dave, procurement manager teams up with Alla, legal manager to construct a service level agreement. Dave is concerned that poor performance of supplier may cause damages to the operations of the organisation. Which of the following can be used in conjunction with SLA to compensate the buying organisation in case of supplier's poor performance?

1. Warranties

2. Force majeure clauses

3. Penalty clauses

4. Service credits


A.

1 and 3 only


B.

3 and 4 only


C.

1 and 2 only


D.

4 and 2 only


Get Premium L4M3 Questions

Contribute your Thoughts:


Chosen Answer:
This is a voting comment (?). It is better to Upvote an existing comment if you don't have anything to add.