CIPS CONTRACT
ADMINISTRATION L3M3
PRACTICE TEST
COMPLETE
Question 1: A buyer needs a one-o� replacement pump that is unlikely to be required again. Which contracting approach is most appropriate?
Choices:
1) Term contract 2) Framework agreement 3) Call-o� order 4) Spot purchase
Correct Answer: Spot purchase
Explanation: A spot purchase is suited to an isolated or one-time requirement where there is no continuing commitment to buy over a de�ned period.Page 1
Question 2: An organisation wants a supplier to provide routine maintenance
services for a de�ned 24-month period. Which arrangement best �ts the requirement?
Choices:
1) Term contract 2) Non-disclosure agreement 3) Single call-o� only 4) Spot purchase
Correct Answer: Term contract
Explanation: A term contract establishes a source of supply for a speci�ed period, making it suitable for recurring services over 24 months.
Question 3: What is the main purpose of a framework agreement?
Choices:
1) To guarantee that the buyer will purchase a �xed quantity immediately 2) To con�rm that all delivered goods have been inspected 3) To set pre-agreed terms under which future call-o�s can be placed 4) To record only con�dential information shared during negotiations Correct Answer: To set pre-agreed terms under which future call-o�s can be placed Explanation: A framework agreement establishes the terms and conditions that will govern future purchases; individual requirements are then placed through call-o�s.Page 2
Question 4: A department orders 30 laptops under an existing framework
agreement. What is this order normally called?
Choices:
1) A contract register 2) A pricing index 3) A spot tender 4) A call-o�
Correct Answer: A call-o�
Explanation: A call-o� is an order or speci�c contract placed under an existing framework or similar overarching arrangement.Question 5: Which contract document should describe the technical or performance requirements that the supplier must meet?
Choices:
1) The contract register 2) The speci�cation 3) The invoice 4) The delivery acknowledgement
Correct Answer: The speci�cation
Explanation: The speci�cation de�nes what is required, including relevant technical, performance, output, or service requirements.Page 3