CIPS Exam L5M3 Topic 1 Question 43 Discussion

Actual exam question for CIPS's L5M3 exam

Question #: 43
Topic #: 1

Lollypop Manufacturer has a long standing contract with Retailer

AThey are three years into a five year contract and have been providing lollypops at 10p each since the beginning of the contract. Due to changes in the supply chain Lollypop Manufacturer would like a price increase. Can this be done?

Ano- the contract is ongoing for another 2 years

Bno- this would be unfair on the buyer

Cyes- if there is a variation clause and both parties agree

Dyes- prices always go up in contracts

Show Suggested Answer

Suggested Answer: C

yes- if there is a variation clause and both parties agree. This would usually be written in as a 'price adjustment clause' but if it's not, then it could be agreed and signed by both parties as a 'contract variation'. See p.16 for more details

by Alfred at Nov 18, 2024, 12:53 AM

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