CIPS COMMERCIAL
CONTRACTING L4M3
PRACTICE TEST 60Q
Question 1: A buyer needs a standard low-risk item and has already �xed the speci�cation, delivery terms and standard conditions. Which sourcing document is most appropriate when price is the main remaining variable?
Choices:
1) Request for quotation (RFQ) 2) Invitation to tender (ITT) 3) Memorandum of understanding 4) Letter of intent
Correct Answer: Request for quotation (RFQ)
Explanation: An RFQ is suitable when the requirement and terms are largely �xed and suppliers are mainly being asked to quote a price. An ITT is usually used for a more detailed competitive process with broader evaluation criteria.Page 1
Question 2: Which document is most likely to contain detailed instructions to
bidders, the speci�cation, contractual terms and a submission deadline?
Choices:
1) Delivery note 2) Invitation to tender (ITT) 3) Credit note 4) Goods received note
Correct Answer: Invitation to tender (ITT)
Explanation: An ITT normally sets out the requirement, bidding instructions, relevant contractual terms and the deadline for tender submission so that bids can be evaluated on a consistent basis.Question 3: A contract refers to a separate document listing delivery locations, reporting requirements and named supplier personnel. What is the best description of this document?
Choices:
1) A counter-o�er 2) An invitation to treat 3) A contract schedule 4) A warranty statement
Correct Answer: A contract schedule
Explanation: Schedules are attachments incorporated into a contract to provide detailed operational information such as locations, personnel, speci�cations, pricing or reporting requirements.Page 2
Question 4: Why is a pricing schedule commonly included in a commercial contract?
Choices:
1) To replace the need for acceptance 2) To transfer ownership of intellectual property automatically 3) To prove the supplier has legal capacity 4) To record the agreed prices, rates or charging structure
Correct Answer: To record the agreed prices, rates or charging structure
Explanation: A pricing schedule records the agreed �nancial basis of the contract, such as unit prices, hourly rates, discounts or other charging mechanisms.Question 5: A supplier publishes a catalogue inviting customers to place orders, but it retains the right to accept or reject each order. In contract-law terms, the catalogue is most likely what?
Choices:
1) An invitation to treat 2) An acceptance 3) A completed contract 4) A deed
Correct Answer: An invitation to treat
Explanation: An invitation to treat invites another party to make an o�er; it is not itself normally a binding o�er capable of immediate acceptance.Page 3