CIPS Exam L5M3 Topic 1 Question 29 Discussion

Actual exam question for CIPS's L5M3 exam

Question #: 29
Topic #: 1

[All L5M3 Questions]

If a party is to 'repudiate' a contract, what does this mean?

Athe party is cancelling the contract as it is no longer needed

Bthe party is using the break-clause to end the contract

Cthe party indicates they no longer intend to fulfil their contractual obligations, usually in response to a breach

Dthe party gives notice that they anticipate that they will not be able to fulfil their future obligations

Show Suggested Answer

Suggested 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).

by Ronny at May 30, 2024, 09:05 AM

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26 days ago

I think 'repudiate' means the party is cancelling the contract as it is no longer needed.

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