L4M3 - CIPS: Commercial Contracting
Exam Questions & Answers 2024/25
Ad-Hoc Purchase - ANSWERSAn item bought for a single and non-recurring use or purpose
Alternative Dispute Resolution (ADR) - ANSWERSAny method of resolving a dispute between two parties
which does not involve court action, including escalation to higher levels of authority, mediation,
adjudication and arbitration
Articles of Incorporation - ANSWERSThe legal document creating a commercial company and setting out
its purpose
Base Year - ANSWERSThe starting point for an index, at which point the index is set to 100
Battle of the Forms - ANSWERSA series of forms such as orders, delivery notes, etc., issued in sequence
by purchaser and supplier, each containing terms that appear to override those on the previous
document
Bespoke - ANSWERSMade or provided especially for a specific end user
Bribery - ANSWERSThe promise, offer or giving of the financial advantage to someone in the expectation
that they will improperly perform their functions, or to reward them for having done so; also accepting
such a promise, offer or advantage (whether or not the function is improperly performed)
Category - ANSWERSA group of goods or services that have shared characteristics
CISG - ANSWERSThe Vienna Convention on Contracts for the International Sale of Goods, a United
Nations treaty seeking to harmonize contract terms for the sale of goods between different countries
, Closed System - ANSWERSA system or process that, once started, does not allow new entrants. A
framework agreement might have multiple buyers and multiple suppliers, but once set up, no additional
buyers or suppliers can be added to it.
Code of Practice (CoP) - ANSWERSA set of written rules explaining how people working in a particular
profession should behave. Sometimes related to particular professions, they may equally relate to
anyone working in a given environment or carrying out a particular function
Collusion - ANSWERSWhere two or more potential suppliers (or the purchaser and one or more
suppliers) secretly co-operate to undermine the competitiveness of a tender process
Conflict Minerals - ANSWERSMetals and minerals sourced from areas where their mining is used to
finance armed conflict and is linked to human rights abuses and corruption. The most commonly
recognized ones are tin, tungsten, tantalum and gold
Contracting State - ANSWERSA country which has signed the Vienna Convention on CISG
Corruption - ANSWERSA wider term than bribery, includes any improper performance of function in
return for some kind of advantage which may or may not be financial, e.g., facilitation payments,
nepotism (favoring of family members), or career promotion. Both the providing and receiving of the
advantage are corrupt practices.
Debt-Bondage - ANSWERSA person's pledge of labour or services as security for the repayment of a debt
or other obligation, where there is no hope of actually repaying the debt
Defects - ANSWERSAny aspects of delivery that do not match the specification
Defendant - ANSWERSThe person defending a claim brought against them
Developing Economy - ANSWERSA national economy which is generally held to be still developing its
industrial base, financial institutions and economic infrastructure
Exam Questions & Answers 2024/25
Ad-Hoc Purchase - ANSWERSAn item bought for a single and non-recurring use or purpose
Alternative Dispute Resolution (ADR) - ANSWERSAny method of resolving a dispute between two parties
which does not involve court action, including escalation to higher levels of authority, mediation,
adjudication and arbitration
Articles of Incorporation - ANSWERSThe legal document creating a commercial company and setting out
its purpose
Base Year - ANSWERSThe starting point for an index, at which point the index is set to 100
Battle of the Forms - ANSWERSA series of forms such as orders, delivery notes, etc., issued in sequence
by purchaser and supplier, each containing terms that appear to override those on the previous
document
Bespoke - ANSWERSMade or provided especially for a specific end user
Bribery - ANSWERSThe promise, offer or giving of the financial advantage to someone in the expectation
that they will improperly perform their functions, or to reward them for having done so; also accepting
such a promise, offer or advantage (whether or not the function is improperly performed)
Category - ANSWERSA group of goods or services that have shared characteristics
CISG - ANSWERSThe Vienna Convention on Contracts for the International Sale of Goods, a United
Nations treaty seeking to harmonize contract terms for the sale of goods between different countries
, Closed System - ANSWERSA system or process that, once started, does not allow new entrants. A
framework agreement might have multiple buyers and multiple suppliers, but once set up, no additional
buyers or suppliers can be added to it.
Code of Practice (CoP) - ANSWERSA set of written rules explaining how people working in a particular
profession should behave. Sometimes related to particular professions, they may equally relate to
anyone working in a given environment or carrying out a particular function
Collusion - ANSWERSWhere two or more potential suppliers (or the purchaser and one or more
suppliers) secretly co-operate to undermine the competitiveness of a tender process
Conflict Minerals - ANSWERSMetals and minerals sourced from areas where their mining is used to
finance armed conflict and is linked to human rights abuses and corruption. The most commonly
recognized ones are tin, tungsten, tantalum and gold
Contracting State - ANSWERSA country which has signed the Vienna Convention on CISG
Corruption - ANSWERSA wider term than bribery, includes any improper performance of function in
return for some kind of advantage which may or may not be financial, e.g., facilitation payments,
nepotism (favoring of family members), or career promotion. Both the providing and receiving of the
advantage are corrupt practices.
Debt-Bondage - ANSWERSA person's pledge of labour or services as security for the repayment of a debt
or other obligation, where there is no hope of actually repaying the debt
Defects - ANSWERSAny aspects of delivery that do not match the specification
Defendant - ANSWERSThe person defending a claim brought against them
Developing Economy - ANSWERSA national economy which is generally held to be still developing its
industrial base, financial institutions and economic infrastructure
