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Exam L4M7 All Questions
Exam L4M7 All Questions

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CIPS Level 4 Diploma in Procurement and Supply L4M7 Question # 9 Topic 1 Discussion

L4M7 Exam Topic 1 Question 9 Discussion:
Question #: 9
Topic #: 1

A procurement manager has agreed a contract for the acquisition of a piece of capital equipment and has negotiated a staged payment contract of 30% with order, 30% on delivery, and the remaining 40% on acceptance testing. Was this the right thing to do?


A.

No, as it commits the organisation to purchasing the equipment and the supplier to deliver it


B.

Yes, as the payments can be linked directly to a specific performance milestone of the contract


C.

Yes, as it means the contract warranties are easier to change


D.

No, as it is an unfair contract term and places the supplier at a disadvantage in the contract


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