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NEW QUESTION 21
ABC Ltd is a UK based company. It plans to enter into a contract with XYZ Ltd which is based in Singapore. Which of the following are the mandatory elements for the contract between ABC Ltd and XYZ Ltd to be legally binding? Select THREE that apply.
- A. All parties must have capacity to contract
- B. The two parties must have intention to be bound
- C. There must be an invitation to treat
- D. The invitation to tender must be sent by the agreed deadline
- E. An amount of money must be paid upfront
- F. There must be an offer and an acceptance
The formation of the contract is where the contractual journey begins; if no contract is formed, neither of the parties can be under any obligations. Therefore, it is very important to have an understanding of each part of a contract's formation.
In order for a legally binding agreement to be formed, there are four basic requirements to be met:
2.3 Certainty & Intention to Create Legal Relations
2.4 Consideration & Promissory Estoppel
- CIPS study guide page 28-42
- Formation of the contract
LO 1, AC 1.2
NEW QUESTION 22
Which of the following are most likely to be liabilities of suppliers under a guarantee clause? Select
- A. TWO that apply
- B. Replacement
- C. Installation
- D. Upgrading
- E. Decommissioning
- F. Repair
A guarantee is an agreement given by a trader to a consumer, without any extra charge, to repair, replace or refund goods that do not meet the specifications set out in the guarantee. A guarantee is usually issued by the manufacturer of goods or by a trader that provides goods as part of a service - replacement windows, for instance. Generally, a guarantee provider undertakes to carry out free repairs, for a set period of time, for problems that can be attributed to manufacturing defects.
- Guarantees and warranties
- CIPS study guide page 157-159
LO 3, AC 3.2
NEW QUESTION 23
Which of the following are among five 'pillars' of information assurance?
1. Recovery plan
- A. 1 and 2 only
- B. 2 and 3 only
- C. 1 and 4 only
- D. 3 and 4 only
Information Assurance (IA)
Information Assurance (IA) is the practice of managing information-related risks and the steps involved to protect information systems such as computer and network systems. The IA transformation is a partnership that stretches across the Department of Defense (DoD), Office of National Intelligence, Committee on National Security Systems, National Institute of Science and Technology (NIST), and the Office of Management and Budget.
The US Government's definition of information assurance is:
"measures that protect and defend information and information systems by ensuring their availability, integrity, authentication, confidentiality, and non-repudiation. These measures include providing for restoration of information systems by incorporating protection, detection, and reaction capabilities." Information Assurance (IA) is essentially protecting information systems, and is often associated with the following five pillars:
The following pillars can be applied in a variety of ways, depending on the sensitivity of the information, or information systems within your organization. Currently, these five pillars are used at the heart of the US Governments ability to conduct safe and secure operations in a global environment.
Integrity involves assurance that all information systems are protected and not tampered with. IA aims to maintain integrity through means such as anti-virus software on all computer system, and ensuring all staff with access to know how to appropriately use their systems to minimize malware, or viruses entering information systems.
Availability simply means those who need access to information, are allowed to access it. Information should be available to only those who are aware of the risks associated with information systems.
Authentication involves ensuring those who have access to information, are who they say they are. Ways of improving authentication involve methods such as two-factor authentication, strong passwords, bio-metrics and other devices. Authentication may also be used to not only identify users, but also other devices.
IA involves the confidentiality of information, meaning only those with authorization may view certain data. This step is closely mirrored by the six data processing principles of the General Data Protection Regulation (GDPR), where by personal data must be processed in a secure manner "using appropriate technical and organizational measures" ("integrity and confidentiality").
The final pillar simply means someone with access to your organizations information system cannot deny having completed an action within the system, as there should be methods in place to prove that they did make said action.
- What is Information Assurance (IA)?
- CIPS study guide page 99-100
LO 2, AC 2.1
NEW QUESTION 24
Which of the following would be useful tools to incentivise supplier innovation over the duration of the contract?
1. Gainshare arrangement
2. Liquidated damages
3. Service credits
4. Fixed bonus payments
- A. 1 and 3 only
- B. 2 and 4 only
- C. 1 and 4 only
- D. 3 and 4 only
Gainshare is an incentive for cost control
Liquidated damage is common type of disincentive for late completion
Service credit is a remedy for not achieving targets set out in an SLA
Fixed bonus payment is an incentive for early completion
LO 3, AC 3.3
NEW QUESTION 25