RA 4. Test

What is a contract?

• An agreement between two or more parties that is legally binding and outlines the rights and responsibilities of each party.

• A verbal agreement that has no legal standing.

• A promise made by one party to another without any obligation.

• A statement of intent with no legal effect.

Which of the following is a characteristic of a written contract?

• It is not legally enforceable.

• It is often easier to prove in case of a dispute.

• It cannot include oral agreements.

• It is less formal than an oral contract.

When parties from different countries enter into a contract, which law typically governs the contract?

• The laws of one of the countries, unless agreed otherwise.

• The laws of the United Nations.

• The laws of the European Union.

• The laws of the International Chamber of Commerce (ICC).

What is "consideration" in a contract?

• The time frame in which the contract must be fulfilled.

• The exchange of something of value, like money or goods, between the parties.

• The legal advice given to each party.

• The duration of the agreement.

Which of the following is an example of "impossibility of performance"?

• One party refuses to perform their obligations intentionally.

• One party fails to meet deadlines.

• A speaker is unable to attend a conference due to a serious accident.

• One party tries to breach the contract due to a financial issue.

Which contract clause ensures that disputes will be resolved whithout going to court?

• Liquidated Damages Clause

• Time of Performance Clause

• Attorney Fees Clause

• Arbitration Clause

What does "rescission" of a contract mean?

• The contract is automatically completed.

• The contract is terminated due to fraud, mistake, or incapacity.

• The parties agree to amend the contract.

• The contract is renewed.

In international business contracts, what is typically included to define which country's law applies?

• The Choice of Law Clause.

• The Resolution of Disputes Clause.

• The Completion Clause.

• The Governing Body Clause.

What is an "arbitral award"?

• A recommendation made by an arbitrator.

• A decision made by an arbitration tribunal that is legally binding on both parties.

• A court judgment issued by a judge.

• A non-binding decision to mediate.

Which of the following is a common reason for "breach of contract"?

• Failure to complete obligations intentionally.

• A mutual agreement to end the contract.

• A situation where both parties misunderstand the terms.

• A written contract that does not include dispute resolution terms.