Case study 7

What should the parties do to limit the obligations to the terms of the Letter of Intent (LOI) if the deal falls through?

• Sign a new contract

• Seek legal action

• Include a termination clause in the LOI

• 1. Ignore the LOI and walk away

How many types of Intellectual Property (IP) are there?

• 2

• 3

• 4

• 5

The Letter of Intent (LOI) is a legally binding contract.

• True

• False

Semicontronics is particularly concerned about the potential for delays in production.  They've identified several factors that could contribute to this.  From the provided options, which TWO are most likely to cause delays and should be specifically addressed in the contract?

• Pricing terms and intellectual property protection

• Quality control provisions and changes & amendment procedures

• Supply chain process and applicable law

• Payment terms and practical aspects

Phoneson is responsible for registering a patent for the design of computer chips.

• True

• False

If the deal falls through, will either party (Semicontronics, Phoneson and Singatron) be bound to its commitments as detailed in the LOI?

• Yes

• No

• It depends

The responsibility for transporting the computer chips from Singapore to Japan is not clearly defined. Which possible issues in transportation did we mention?

• Confusion and potential delay

• Increasing transportation costs

• Intellectual property infringement

• Changes and Amendments

What is one of the biggest disadvantages when cooperating with Singatron manufacturer?

• Low-quality products

• Lack of experience

• A conservative company to cooperate with

• No disadvatage, it's the best company in electronics market

Singatron's lack of experience is the single biggest risk for Semicontronics in this partnership.

• True

• False

Singatron's advanced technology in manufacturing the chips may be exposed to

Semicontronics due to quality inspection. Which solution did we mention for that issue?

• Try to keep a secret

• Stop cooperating with Semicontronics

• Sign a non-disclosure agreement

• Register a patent