CIPS L4M3 Exam Dumps

In order to form a contract to come into being, there are five conditions:

- Offer

- Acceptance

- Consideration

- Intention to be legally bound

- Capacity to contract

LO 1, AC 1.2

Consideration refers to the exchange of something of value between the contracting parties and is a fundamental requirement for a valid contract. It can be in the form of goods, services, money, or a promise. Without consideration, there is no enforceable contract even if other elements like offer and acceptance are present.

Supplier standard terms and conditions are drafted:

To protect the supplier's interests,

To limit the supplier's liability,

To secure favourable payment and performance conditions for the supplier.

If the buying organisation accepts these without negotiation (especially in a rush), it risks ending up with contract conditions that are favourable to the supplier (D) and less favourable protections for itself.

'Cost reductions' and 'on-time in full deliveries' are quantifiable, objective performance measures that align directly with supplier effectiveness and value. 'Customer loyalty' and 'awards' are subjective or aspirational and not reliable indicators of contract or supplier performance.

The question explicitly mentions labour standards and ESG (environmental, social, governance).

Modern Slavery (C): relates directly to labour and human rights (forced labour, trafficking, child labour).

Sustainability (D): covers environmental and social impacts, resource use, and long-term responsibility, key under ESG.

Indemnity and warranty are general legal/contractual concepts, and ISO9000 is a quality management standard, not specifically focused on labour/ESG.