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CIPS L3M3 Exam
Contract Administration (Page 3 )

Updated On: 7-Feb-2026
Page 3 of 19
PDF with 90 Questions

Key players have a:

  1. High level of interest but little influence
  2. High level of interest and little power
  3. High level of power and a high level of interest
  4. High level of power but little interest

Answer(s): C

Explanation:

High level of power and a high level of interest.

You should hope that in your exam you get such an easy QUESTION NO : !



Under a XXXX contract, the buyer does commit to purchase a given quantity over a given period of time, but the precise number of orders and their quantities is unknown at the start of the period.
What expression has been replaced by XXXX?

  1. Call-off
  2. Framework
  3. Oral
  4. Term

Answer(s): A

Explanation:

The fact that the time period and the total quantity is known means it is a 'call-off' contract. The volumes of product are 'called off' from the contract as required by the buying organisation.

Make sure you understand the difference between a call-off contract and a framework arrangement.

Under a framework arrangement, there is no obligation on the part of the buyer to use the goods / services specified.



A `cause and effect' or `fishbone' diagram is also commonly known as:

  1. A Murakami diagram
  2. A Fukushima diagram
  3. An Ishiguro diagram
  4. An Ishikawa diagram

Answer(s): D

Explanation:

The answer is an Ishikawa Diagram.

Can be used in addressing quality problems, problems of under-performance, etc.

The other Japanese-sounding names shown as possible answers are spurious - two are novelists, and Fukushima was a serious environmental radioactive leak at a nuclear power station on the coast of Japan.



`A purchasing procedure whereby potential suppliers are invited to make a firm and unequivocal offer of the price and terms on which they will supply specified goods or services which, on ac- ceptance, shall be the basis of the subsequent contract'

  1. Competitive dialogue
  2. Request for information
  3. Invitation to tender
  4. Expression of interest

Answer(s): C

Explanation:

The 'firm and unequivocal offer' and 'the basis of a contract' indicate the reference to a formal and binding tender procedure. The answer is therefore 'invitation to tender'.



What is a contract?

  1. An agreement between two or more parties which is intended to be enforceable by any means feasible.
  2. An agreement between two or more parties which is enforceable in law.
  3. An agreement between two or more parties which is intended to be honoured.
  4. An agreement between two or more parties which, all other things being equal, is in-tended to be enforceable by law.

Answer(s): B

Explanation:

An agreement between two or more parties which is enforceable in law.

This definition separates a contract from a social or domestic arrangement, in that contracts are in- tended to be enforceable at law. The other answers shown here dilute the concept, and so are unac- ceptable as answers to the question.



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