CIPS Exam L5M3 Topic 2 Question 46 Discussion

Actual exam question for CIPS's L5M3 exam

Question #: 46
Topic #: 2

[All L5M3 Questions]

When drafting a liability clause in a contract, which of the following statements are TRUE? Select THREE

Aexclusions should be narrowly defined and clearly state which types of liabilities are excluded

Bthe goal of the liability clause is to punish the contractor for poor performance

Cliability is a legal responsibility

Dliability can only be limited where there is valid insurance

Eliability cannot be excluded for injury resulting from negligence

Show Suggested Answer

Suggested Answer: C

DEF must deliver the pasta required by ABC is the correct answer. Specific performance is when the innocent party is rewarded by receiving what was initially negotiated - in this case the delivery of pasta. It's basically a posh way of saying that the court mandates you to do what the contract says. See p. 129 for information on Specific Performance.

by Laura at Jan 27, 2025, 03:14 PM

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Cyndy

7 days ago

Hmm, options B and D seem a bit off. I'm pretty sure the goal of a liability clause is to allocate risk, not punish the contractor. And I've heard that liability can be limited even without insurance coverage in some cases.

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