CIPS Exam L5M3 Topic 2 Question 36 Discussion

Actual exam question for CIPS's L5M3 exam

Question #: 36
Topic #: 2

ABC has a contract with its supplier DEF who delivers pasta to ABC's manufacturing plant. DEF has committed a breach and conflict resolution has taken place. The Court has awarded ABC 'specific performance' damages. What could this involve?

ADEF must pay money to ABC as stated in the liquidated damages clause

BDEF must pay an amount of money as determined by the courts

CDEF must deliver the pasta required by ABC

DDEF must rescind the contract

Show Suggested Answer

Suggested Answer: C

DEF must deliver the pasta required by ABC is the correct answer. Specific performance is when the innocent party is rewarded by receiving what was initially negotiated - in this case the delivery of pasta. It's basically a posh way of saying that the court mandates you to do what the contract says. See p. 129 for information on Specific Performance.

by Corinne at Sep 11, 2024, 01:56 PM

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Leota

2 months ago

I think those options might not be applicable in this case because 'specific performance' usually involves fulfilling the terms of the contract.

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Dorethea

2 months ago

C) DEF must deliver the pasta required by ABC. Specific performance is like the court saying, 'No more excuses, get that pasta delivered!'

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Glenna

1 months ago

C) DEF must deliver the pasta required by ABC

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Estrella

1 months ago

B) DEF must pay an amount of money as determined by the courts

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Norah

1 months ago

C) DEF must deliver the pasta required by ABC

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Zoila

1 months ago

A) DEF must pay money to ABC as stated in the liquidated damages clause

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Thaddeus

2 months ago

But what about the other options like paying money or rescinding the contract?

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Thersa

3 months ago

C) DEF must deliver the pasta required by ABC. Easy peasy, the court wants DEF to uphold their end of the bargain. What, did they think they could just pay their way out of this one?

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Darnell

2 months ago

B) DEF must pay an amount of money as determined by the courts

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Garry

2 months ago

C) DEF must deliver the pasta required by ABC

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Martina

2 months ago

A) DEF must pay money to ABC as stated in the liquidated damages clause

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Roslyn

3 months ago

C) DEF must deliver the pasta required by ABC. Yeah, that's the one. Specific performance means they have to actually deliver the goods, not just pay up.

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Iraida

2 months ago

C) DEF must deliver the pasta required by ABC. Yeah, that's the one. Specific performance means they have to actually deliver the goods, not just pay up.

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Glynda

2 months ago

C) DEF must deliver the pasta required by ABC

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Phil

2 months ago

B) DEF must pay an amount of money as determined by the courts

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Viola

2 months ago

A) DEF must pay money to ABC as stated in the liquidated damages clause

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Lizette

3 months ago

I believe it could involve DEF delivering the pasta required by ABC.

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Lorita

3 months ago

B) DEF must pay an amount of money as determined by the courts. I'm not sure why they would order specific performance if the issue could be resolved with a monetary payment.

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Carli

3 months ago

C) DEF must deliver the pasta required by ABC

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Carlota

3 months ago

A) DEF must pay money to ABC as stated in the liquidated damages clause

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Leota

3 months ago

So, what could this involve?

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Lizette

3 months ago

I think the Court awarded 'specific performance' damages to ABC.

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Lamonica

3 months ago

C) DEF must deliver the pasta required by ABC. Seems like the clear answer here. The court ordered specific performance, so DEF has to fulfill the contract.

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Staci

3 months ago

C) DEF must deliver the pasta required by ABC

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Dalene

3 months ago

A) DEF must pay money to ABC as stated in the liquidated damages clause

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