CIPS Exam L6M5 Topic 2 Question 9 Discussion

Actual exam question for CIPS's L6M5 exam

Question #: 9
Topic #: 2

[All L6M5 Questions]

Cyril Engineering entered into a contract with Dojo Ltd for electrical engineering services to a power station.

The contract was successful for two years, but Cyril Engineering failed to fulfill obligations recently.

Q: What is this situation known as?

Answer Options:

AConsequential Loss

BDamages

CDefault

DDirect Loss

Show Suggested Answer

Suggested Answer: C

Failure to meet contractual obligations is classified as Default (p.123).

Consequential Loss (A) refers to indirect financial loss due to contract failure.

Damages (B) are legal remedies for breaches.

Direct Loss (D) relates to immediate financial impact, but default is the correct term for a failure to meet obligations. [P.123]

by Dottie at Apr 03, 2025, 04:51 AM

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Mauricio

3 days ago

D) Direct Loss seems like the correct answer to me. The failure to fulfill obligations led to a direct loss for the client, Dojo Ltd.

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Rodolfo

17 days ago

I think the answer is C) Default. The contract was successful for two years, but Cyril Engineering recently failed to fulfill its obligations, which is a clear case of default.

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Reuben

19 days ago

The situation is known as Default.

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