CIPS Exam L5M3 Topic 1 Question 41 Discussion

Actual exam question for CIPS's L5M3 exam

Question #: 41
Topic #: 1

[All L5M3 Questions]

If an innocent party wishes to terminate a contract due to a breach, which of the following is true?

Aonly future obligations of the parties are excused and discharged

Ball obligations of the innocent party are excused and discharged

Call obligations of the offending party are excused and discharged

Donly past obligations of the parties are excused and discharged

Show Suggested Answer

Suggested Answer: A

The correct answer is 'only future obligations of the parties are excused and discharged' - all cur-rent and past obligations need to be fulfilled, or remedied (e.g. through liquidated damages). When an innocent party terminates a contract, they are still obliged to fulfil their own obligations. P.47

by Shayne at Sep 17, 2024, 11:39 PM

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Jesusa

2 days ago

Trick question! The answer is obviously A. You can't just get out of future obligations because of a breach. That would be way too easy.

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Slyvia

7 days ago

Hmm, I'm torn between B and C. But I think C makes the most sense - the offending party should be the one facing consequences, not the innocent party.

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Iluminada

16 days ago

D is the correct answer. Only past obligations are excused, not future ones. Gotta love those tricky contract law questions!

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Janey

17 days ago

I'm going with C. The offending party should be the one whose obligations are excused and discharged, not the innocent one.

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Major

21 days ago

But doesn't it make more sense for the innocent party to be relieved of all obligations?

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Nell

22 days ago

Option B seems like the most logical choice here. If the contract is terminated due to a breach, the innocent party should be fully relieved of their obligations.

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German

3 days ago

But what about the obligations of the offending party? Shouldn't they also be excused and discharged?

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Makeda

5 days ago

I agree, option B makes the most sense. The innocent party shouldn't have to fulfill any obligations if the contract is terminated.

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Kris

24 days ago

I disagree, I believe the correct answer is C) all obligations of the offending party are excused and discharged.

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Major

25 days ago

I think the answer is B) all obligations of the innocent party are excused and discharged.

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