The way to answer a problem-solving question: IRAC method: I: Identify the issues => What is the legal issue that you have to deal with? R: Identify the rules that need to be applied in order to resolve the problem. A: Application C: Conclusion => Draw conclusion from the facts given in the case. The conclusion and the issue have to be connected to each other. Should be 1 to 2 sentences long only. 1 issue => 1 conclusion. 2 issues => 2 conclusions. Case 1 page 50: I: Identify the issues The legal issue in this case is whether a country can break a contract with a private company without having to pay any compensation or not. R: Identify the rules Pacta Sunt Servanda (which is the Latin word for 'agreement must be kept'): when the parties make an agreement, they are binded by the contract. A: Application: According to the rule, the country cannot break the contract. Instead, what they can do is to negotiate the contract again, not to terminate the contract because they are bound by the agreement by the other side. C: Conclusion The country cannot terminate the agreement with company B based on the rule. If they don't negotiate, they have to pay the compensation