Law - Ch- 3 to 5

Mary lives in Eastlandia and is in dispute with Ezra who lives in Westlandia. The source of the dispute is that Eastlandia requires all commercial contracts to be evidenced in writing, whereas in Westlandia commercial contracts can be formed orally or in writing.

What is the source of this dispute?

• 1. Failure of mediation

• 1. Offer not matching acceptance

• 1. Conflict of laws

• 1. Anticipatory breach of contract

The United Nations Convention on Contracts for the International Sale of Goods (CISG) was developed by UNCITRAL.

Which of the following statements about CISG is/are correct?

1. 1. CISG applies to the sale of goods only

2. 2. CISG cannot be tailored to the national law of contracting states

3. 3. Goods generally means tangible, moveable items

• 1. 1 only

• 1. 2 only

• 1. 1 and 3 only

• 1. 1, 2 and 3

CISG applies to which of the following?

• 1. A car bought at auction

• 1. The purchase of a hovercraft

• 1. The sale of a patent

• 1. The purchase of a new combine harvester

Which of the following statements about CISG is correct?

• 1. CISG applies to the sellers’s liability for death or personal injury

• 1. CISG can be excluded by the contracting parties

• 1. CISG clauses cannot be amended by the contracting parties

• 1. CISG regulates the validity of the contract itself

Jurgen wishes to make a contract to buy machine parts from Pep. Jurgen rang Pep to enquire about the price, following which Pep wrote a letter to Jurgen confirming prices and availability.

When will a contract be formed between the parties?

• 1. When Jurgen rang Pep to ask about the price of machinery

• 1. When Pep posts his letter to Jurgen

• 1. When Pep’s letter arrives at Jurgen’s office

• 1. When Jurgen contacts Pep again to place an order

Oskar Co wrote to Franz Co, an overseas car manufacturer, asking for the lowest price that it would charge for a specific car model. Franz Co replied that it would expect no less than $30,000. Oskar Co then wrote to Franz Co with a remittance of $30,000, asking for the car to be delivered within seven days.

In relation to the UN Convention on Contracts for the International Sale of Goods, which of the following statements is correct?

• 1. Franz Co’s reply to Oskar Co was an offer

• 1. The remittance from Oskar Co can only be regarded as an invitation to treat

• 1. If Franz Co delivers the car on time, this will be regarded as acceptance

• 1. Oskar Co’s letter with the remittance was an acceptance

To be effective an offer must be which of the following?

• 1. Sufficiently timely

• 1. Sufficiently definite

• 1. Sufficiently delivered

• None

Under CISG who is responsible for arranging carriage and insurance?

• 1. The seller must arrange carriage, the buyer arranges insurance

• 1. The seller must arrange insurance, the buyer arranges carriage

• 1. The buyer and seller can agree this between themselves

• 1. The seller must arrange carriage and insurance

Which of the following statements about acceptance of offers is correct?

1. 1. If a time limit is set in an offer, the offer will expire a reasonable period of time after this date

2. 2. If no time limit is set for acceptance, the offer will lapse after a reasonable period of time

• 1. 1 only

• 1. 2 only

• 1. Neither 1 nor 2

• 1. Both 1 and 2

Which of the following statements about the seller’s obligations are correct?

1. 1. The seller must deliver the goods at the right place

2. 2. The seller must deliver the goods at the right time

• 1. 1 only

• 1. 2 only

• 1. Neither 1 nor 2

• 1. Both 1 and 2