Online Access Free L5M3 Exam Questions

Service Credits are a form of what?

• A.liquidated damages
• B.KPI
• C.Consideration
• D.indemnity

Which of the following will you put into box 2?

• A.Specification
• B.Time is of the Essence
• C.Payment Term
• D.Subcontracting

Restitution Measures are an award which seeks to return the value of a benefit which has been seen to be unfairly received. Which of the following statements about Restitution Measures is TRUE? Select TWO

• A.restitution damages intend to return the innocent party to the position they were in be-fore the contract
• B.restitution damages considers the position of the breaching party before the contract
• C.restitution damages are not limited to pre-agreed levels stated in the contract
• D.restitution damages are based on how much was gained by the breaching party as a re-sult of the breach

Where two parties are engaged in international trade and have a long term relationship and a degree of mutual trust, which payment mechanism is commonly used?

• A.Letter of Credit
• B.Documentary Collection
• C.Bill of Exchange
• D.Stage Payment

GoGo Ltd has contracted Reny Manufacturing to produce a bespoke piece of equipment for them. It is an asset and costs a significant amount of money. A contract is drawn up which states that GoGo Ltd has the right to terminate the contract at any time for any reason. Halfway through production of the asset, GoGo Ltd calls Reny Manufacturing to cancel the order. Reny Manufacturing has incurred many costs already. Can GoGo Ltd cancel the order?

• A.no- Reny Manufacturing will sue for damages
• B.yes- the order has not yet been delivered meaning that GoGo Ltd can cancel- there has been no transfer of ownership
• C.yes- there is a termination clause in the contract
• D.no- the termination clause is unfair