Contracts are fundamental, they set out the rights and obligations of business parties *

True

False

Stare decisis: code based legal system found in continental Europe, Middle east, African countries *

False

TRue

Importance of primary contract : it is essential to address all questions arising between the trading parties *

False

True

Essential elements of a valid contract includes *

A)Intention on the part of each party to create a legal relationship

B)There must be an offer and an unequivocal acceptance of the offer

Only A and B

C)Parties must have the legal capacities to make the contract

A, D,C and D

D)Contracts must be for a legal purpose

Only A,B and D

Consideration includes all except for : *

It is called 'bargain theory' of a contract

every contract must be supported by consideration. i.e. a contract must be characterized by an exchange of value moving from each party to the other

society imposes obligations on parties

Which one is correct about Enforceability of Contracts ? *

B) Undue Influence : usually involves personal relationships, domination of power

Only A,B and E

C) Duress : economic or physical threats used on a party

A, B,C , D and E

E)Misrepresentation : one party makes a statement that is material, can influence the decision of other party to enter the contract. It could be innocent, negligent or fraudulent

A) A contract may meet the requirements of law and still not be enforceable because of defects

D) Mistake : parties are 'not on the same page', miscommunication

Importance of correct documentation includes "sale of documents" - the original buyer/ importer never takes possession of the goods but "sells" the appropriate documents so that the subsequent buyer can claim the goods. Most common docs required: bill of lading or other transport document, depending on the type of transport used and the insurance policy or certificate of insurance. *

True

False

When property in the goods passes with the delivery of the bill of lading, it is a conditional property right only, and is subject to the goods reverting to the seller if they do not conform to the contract *

True

False

Ancillary Contracts for the International Sale of Goods transaction are not additional or supporting contracts and are not essential to these commercial transactions. *

True

False