Free CIPS L5M3 Practice Test & Real Exam Questions

  • Exam Code/Number: L5M3
  • Exam Name/Title: Managing Contractual Risk
  • Certification Provider: CIPS
  • Corresponding Certification: CIPS Level 5 Advanced Diploma in Procurement and Supply
  • Exam Questions: 118
  • Updated On: May 29, 2026
Which of the following will you put into box 2?
Correct Answer: B Vote an answer
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Derrek owns a factory and employs a Facilities Management Company called Balls FM to look after certain aspects of the factory including cleaning and testing the machinery to ensure they are in good working condition. One day he realises that one of the cleaners doesn't work for Balls FM, he works for another company called Bells FM. Which of the following statements regarding subcontracting is true?
Correct Answer: D Vote an answer
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George is a procurement manager at a manufacturing company and is reviewing a contract he has with a supplier. He notes that there are multiple appendices to the contract and there is no Precedence of Documents. What does this mean for the contract?
Correct Answer: B Vote an answer
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Which of the following will you put into box 4?
Correct Answer: B Vote an answer
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A failure to perform a provision of a contract which does not affect the end performance of the contract is known as what?
Correct Answer: A Vote an answer
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Which of the following is usually the default method for resolving disputes?
Correct Answer: D Vote an answer
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Popsi Cula is a manufacturer of sugared beverages and produces over 5000 tonnes of soda each day. It is extremely important that ingredients are delivered to the factory on specific days in order for the production to keep to its very tight schedule. Popsi Cula is onboarding a new supplier - which of the following clauses would it be important for the contract to contain?
Correct Answer: C Vote an answer
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Which of the following must a legally binding contract contain? Select THREE
Correct Answer: A,B,E Vote an answer
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A failure to perform a provision of a contract which does not affect the end performance of the contract is known as what?
Correct Answer: A Vote an answer
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Terry's Toys is a Toy Manufacturer who has an agreement to provide Toys to an online re-tailer. The retailer has ordered 500 toys from Terry and Terry has incurred costs of £3000 manufacturing the toys. Halfway through production the retailer calls Terry to cancel the order. Terry reads through the contract and sees a liquidated damages clause of £1000. What should Terry do?
Correct Answer: D Vote an answer
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