CIPS L4M3 SAMPLE QUESTIONS invitation to tender or request for quotations

As part of understanding assessment criteria one on CIPS L4M3, that is, Analyse the documentation that can comprise a commercial agreement for the supply of goods or services, here are some CIPS L4M3 sample questions invitation to tender or request for quotations.

Access more questions and the end of these questions as wells are the answers and explanations.

QUESTIONS (answers and more questions are provided at the end)

QUESTION 1

Which of the following statements best defines a contract?

1. A legally binding agreement between two or more parties that establishes rights and obligations.
2. An informal agreement between friends or family members that can be easily modified or cancelled.
3. A verbal understanding between parties that does not require any written documentation.
4. A non-binding agreement that can be enforced only through moral or ethical obligations.

QUESTIONS 2

Which of the following is an example of a unilateral contract?

1. A landlord and tenant signing a lease agreement.
2. Two business partners drafting a joint venture agreement.
3. A company offering a reward for finding a lost item.
4. An employer and employee negotiating the terms of a job offer.

QUESTION 3

Which of the following could be viewed as relevant steps in the preparation of an invitation to tender?

Select TWO that apply

1. Re-writing a model form contract
2. Creating a detailed specification
3. Learning international standards
4. Advertising the requirements
5. Publishing your company’s financial reports

QUESTION 4

Which of the following will typically be included with the invitation to tender (ITT)? Select the THREE that apply?

1. Specification
2. Purchase order
3. Terms and conditions
4. Requisition
5. Performance measures
6. Mandate

1. i, iii, v
2. ii,iii,iv
3. iv,v,vi
4. I,ii,iii

QUESTION 5

Which of the following details of the buyer’s requirement might not be included in a standard enquiry (request for quotation) form

1. The contact information of the purchaser
2. A reference number to use in reply and date by which to reply
3. The quantity and description of goods or services required
4. Credit and Debit card details

ANSWERS AND EXPLANATIONS

QUESTION 1

Answer: A

Explanation

The idea behind a contract is to turn any agreement between parties, whether verbal or written, into a legally binding one.

QUESTIONS 2

Answer: C

Explanation

A unilateral contract is a contract in which only one party is obliged to perform an action. For instance, if you lose a phone and say you will reward a person who brings it back, no one is obliged to look for your phone.

BUT if someone who is aware of this offer looks for the phone, finds it and brings it to you, you are obliged to reward them as per your promise

QUESTION 3

Answer B,C

Explanation

The point of invitation to tender (ITT) is to give the potential supplier or vendor relevant information so that they can decide if the want to bid for contract or not hence the need to create specifications and advertise the requirements

QUESTION 4

Answer A

Explanation

In some instances, an organization may need to use a more formalized form of competitive bidding or tendering procedure in which the prequalified suppliers are issued with an invitation to tender (ITT) or invitation to bid for a contract,

The organization will include material intended to show the supplier what they expect from them or in their (supplier’s) bids. Such items will include Specification, Terms and conditions, Performance measures

QUESTION 5

Answer D

Explanation

The idea behind quotation is, the buyer describes what they wish to buy and the supplier offers the price at which they are willing to supply it for.

Details about credit card or debit cards are not something the buyer is interested in

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