WorksheetsSKG03 - Law & Contract Related To Marketing &Trading
Total questions: 13
Worksheet time: 7mins
Which of the following is NOT a reason as a matter of good governance for having a contract in writing?
It is evidence of the intention of the parties.
It allows a signing ceremony to be conducted.
It is a point of reference for parties as to what has been agreed.
It serves as record of the transactions entered by a party.
ABC Petroleum has issued an invitation to bid to 12 bidders worldwide. The invitation to bid constitutes a/an ___________ to the 12 bidders.
Invitation to treat
Offer
Acceptance of offer
Consideration
A requires 200,000 bbls of low sulphur fuel oil. B is only able to supply 100,000 bbls, to be delivered in 3 shipments. A valid contract can be created if A accepts B’s terms of supply and delivery.
True
False
A valid contract can have 10 parties. It is also possible to further add more parties to the contract during the contract period with the agreement of all the original parties.
True
False
A and B are business associates. Which agreement is void for lack of consideration?
A promises to pay B RM500 if B paint A’s house.
A promises to pay B RM500 if B transfers ownership of an iPhone (with a value of RM3,000) to A.
A promises to pay B RM500 if B requires funds to continue his studies.
A promises to pay B RM500 if B become a follower on A’s Instagram account.
Information which must be set out in a commercial contract include:
Name and address of the parties.
Quantity of cargo and tolerance.
Price and payment terms.
All of the above
Which of the following is NOT a delivery term under INCOTERMS 2010?
FOB
CIF
DAE
DDT
An indemnity should be sought:
To cover costs of legal proceedings in the event of default by the counter-party.
To cover the costs of damage to cargo which may be caused by the counter-party.
To cover the amount of claims made by a third party as a result of default by the counter-party.
All of the above.
What does NOT generally constitute a trigger for the termination of a contract:
Breach of terms and conditions by a party.
Force Majeure lasting beyond agreed period.
Buyer is able to procure goods at a lower price from another seller.
Winding up proceedings being instituted against a party.
Upon the termination of a contract, which of the following should still be performed by the parties:
Delivery of the monthly quantity of cargoes committed under the contract.
Delivery of the yearly quantity of cargoes committed under the contract.
Payment for cargoes delivered during contract period.
Acceptance of cargoes delivered after the contract period.
A shipment of cargo was lost at sea as a result of tsunami caused by a major earthquake off the coast of Country A. What should generally be the treatment of the loss under a sale and purchase contract?
Breach of contract by seller.
Breach of contract by buyer.
Event of Force Majeure.
Default of the government of country A for failing to provide warning of impending earthquake.
Parties may elect to refer any dispute arising under the contract for mediation, expert determination, determination by the courts or arbitration, or any combination of the aforementioned.
True
False
Unless otherwise provided or allowed by law, a claim under a contract must be brought within _________ years of such claim arising.
3 years
5 years
6 years
7 years
