CIPS Managing Contractual Risk L5M3 Question # 18 Topic 2 Discussion

CIPS Managing Contractual Risk L5M3 Question # 18 Topic 2 Discussion

L5M3 Exam Topic 2 Question 18 Discussion:
Question #: 18
Topic #: 2

Lollypop Manufacturer has a long standing contract with Retailer A. They are three years into a five year contract and have been providing lollypops at 10p each since the beginning of the contract. Due to changes in the supply chain Lollypop Manufacturer would like a price increase. Can this be done?


A.

no- the contract is ongoing for another 2 years


B.

no- this would be unfair on the buyer


C.

yes- if there is a variation clause and both parties agree


D.

yes- prices always go up in contracts


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