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100% Pass Quiz CIPS - Latest L4M3 - Exam CIPS Commercial Contracting Study Guide

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CIPS Commercial Contracting Sample Questions (Q162-Q167):

NEW QUESTION # 162
Which of the following could be the last document in a 'battle of the forms'?

A. Order acknowledgement
B. Quotation
C. Invitation to Tender (ITT)
D. Purchase order

Answer: A

Explanation:
In a 'battle of the forms', both buyer and supplier exchange documents with conflicting terms. The general rule is that the terms of the last document exchanged before performance (e.g., delivery or payment) that is not objected to will govern the contract. An order acknowledgement from the supplier with its own terms, followed by acceptance (e.g., payment), usually constitutes the final word.
Reference:CIPS L4M3 Commercial Contracting Study Guide, Chapter 1, Section 1.2.3 - Battle of the forms and contractual precedence.

NEW QUESTION # 163
Which of the following is the model form of contract for construction which is recommended by World Bank?

A. CIPS
B. FIDIC
C. ITC
D. JCT

Answer: B

Explanation:
FIDIC is the International Federation of Consulting Engineers (or Federation Internationale des Ingenieurs Conseils in French). FIDIC has produced many publications, including the model form contracts, best practice guidances, research on sustainability, integrity and risk management. FIDIC model form contracts have been developed by this organisation since 1999, now they consist of several different books which are marked by colours. Thus, FIDIC model contracts also have the nickname "Rainbow suite of contracts". Basically, the
"Rainbow Suite" include the following books:
* Yellow book: Plant and Design-Build Contract (2 editions: 1999 and 2017)
* Silver book: EPC/Turnkey Contract (2 editions: 1999 and 2017)
* Red book: Construction Contracts (2 editions: 1999 and 2017)
* Emerald book: Conditions of Contract for Underground Works (1st Ed 2019)
* Blue-Green book: Dredgers Contract (2 editions: 2006 and 2016)
* Gold book: Design, Build and Operate Contract Guide
* Pink book: Construction Contract Multilateral Development Bank Harmonised Ed (2 editions: 2005 and
2010)
This type of model contract is commonly used around the world because its author, International Federation of Consulting Engineers, collaborates closely with development banks such as World Bank, Africa Development Bank, Asia Development Bank, etc. Every construction project that is financed by these institutions must adopt the FIDIC contracts.
The Joint Contracts Tribunal, also known as the JCT, produces standard forms of contract for construction, guidance notes and other standard documentation for use in the constructionindustry in the United Kingdom.
From its establishment in 1931, JCT has expanded the number of contributing organisations.
ITC (International Trade Centre) produces contracts specifically designed for small companies doing international business, covering the sale of goods, distribution, services and joint ventures. Many small companies are now engaged in international trade, but don't have access to the necessary contract forms to protect themselves. ITC and leading legal experts developed eight generic contract templates that incorporate internationally recognized standards and laws for most small business situations.
CIPS has several model forms of contract designed specifically for IT buying and servicing.
Reference: CIPS study guide page 142
LO 3, AC 3.1

NEW QUESTION # 164
Which of the following is an agreement between service provider and user that quantifies the minimum quality of service?

A. Service standard
B. SLA
C. Service guarantee
D. Service charter

Answer: B

Explanation:
A service-level agreement (SLA) is a commitment between a service provider and a client. Particular aspects of the service - quality, availability, responsibilities - are agreed between the service provider and the service user. The most common component of an SLA is that the services should be provided to the customer as agreed upon in the contract.
A customer service charter is a document that outlines how an organization promises to work with its customers along with providing insights into how an organization operates.
A service guarantee is a marketing tool service firms have increasingly been using to reduce consumer risk perceptions, signal quality, differentiate a service offering, and to institutionalize and professionalize their internal management of customer complaint and service recovery.
Reference: CIPS study guide page 110
LO 2, AC 2.2

NEW QUESTION # 165
Why would you use a non-disclosure agreement?

A. To give parties permission to share all information in the public domain
B. To allow parties the freedom to disclose confidential information to the public domain
C. To protect parties, where information has been shared that is not in the public domain
D. To agree between parties what information is and is not confidential and what can be in the public domain

Answer: C

Explanation:
A non-disclosure agreement is used to protect confidential information shared during discussions or collaborations. It ensures that sensitive data is not disclosed to unauthorized parties and maintains trust between contractual parties during tendering or negotiation.
Reference:CIPS L4M3 Commercial Contracting Study Guide, Chapter 3, Section 3.2.1 - Use of NDAs in procurement.

NEW QUESTION # 166
What is an example of the legal term an 'Invitation to treat'?

A. An invitation to another person to make an offer to contract
B. A formal agreed contract between two or more parties
C. A response to a quotation from a supplier
D. An invitation to work in partnership with another supplier

Answer: A

Explanation:
An invitation to treat is a legal concept that refers to an indication that a party is open to receiving offers, but it is not an offer in itself. Common examples include advertisements, display of goods in shops, or issuing a tender. It invites others to make offers, which may or may not be accepted.
Reference:CIPS L4M3 Commercial Contracting Study Guide, Chapter 1, Section 1.2.1 - The formation of a contract including offer, acceptance and invitation to treat.

NEW QUESTION # 167
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