1.

When the parties to an international contract have not selected a governing law and a
conflict occurs:
a) the court must first rule on the matter of its competence, then decide on the law governing
the contract before judging the case on the merits.
b) the parties have to agree on a governing law before making a claim
c) the court will apply the law of the country where the defendant is located
d) the parties have to submit their dispute to arbitration
Comment:

2. The consequence of the autonomy of the arbitration clause in an international contract is

that:
a) the clause remains valid even when the contract is rescinded
b) the clause has to be signed by the parties in an instrument separate from the contract
c) to be enforceable, the clause must be validated by a court of law
d) the clause remains valid, even if the governing law does not recognize arbitration
Comment:

3. If a dispute occurs in an international contract where the parties have agreed on

settlement of disputes by courts of law:
a) the claimant is entitled to choose the venue
b) the parties must agree on the courts of the governing law country
c) the party who did not prevail can make an appeal against the decision with the competent
appellate court
d) the party who did not prevail can bring forth the dispute to an arbitration panel
Comment:

4. When a contract is concluded under a condition subsequent, this means that:

a) the contract may be rescinded if the condition is met
b) the contract may be rescinded if the condition is not met
c) the contract is terminated if the condition is met
d) the contract is terminated if the condition is not met
Comment:

5. Contract acceptance:
a) must be given in writing to be enforceable
b) must not differ from the terms of the offer to create a contract
c) becomes a counter-offer is made under conditions
d) does not create a contract if it does not expressly bears on essential elements of the deal
Comment:

6. An offer to contract:
a) is the legal equivalent of a promise to contract
b) is a unilateral declaration that the offeror can revoke at any time
c) cannot be revoked once it has been accepted
d) must include all essential elements of the deal to have any legal value as an offer
Comment:

7. the Vienna convention on international sale of goods:

a) applies to a contract between a consumer and a professional
b) stipulates the conditions for an international sale contract to be valid and enforceable
c) applies only provided that the sale is of an international nature
d) applies if the plaintiff resides in a country having ratified the convention
Comment:

8. Assume that, as you walk by the breach, you hear someone call “help” and rescue a person
from drowning:
a) You can claim payment from that person under contract law, since “help” is an offer and your
diving into the water, its acceptance – and further since your risking your own life constitutes
proper consideration, if under common law
b) you are not entitled to any payment, as this was a gratuitous unilateral act, not performed in
exchange of a promise or any undertaking from the victim
c) if you suffer injuries in saving this person’s life, the victim must pay for your hospital fees
d) you can be sued if you fail to save the person
Comment:

9. Assume that you bet a large amount of money on a horse with your friend, based on the
“tip” received from such friend. The horse loses the race, can you refuse to honor your debt:
a) yes, on the grounds of misrepresentation, as the tip proved inaccurate
b) yes, on the grounds of common mistake, since your friend sincerely believed his/her horse
c) yes, as betting on a future uncertain event cannot constitute any legal obligation
d) no, as the bet itself is sufficiently certain and specific to found an obligation to pay.
Comment:

10. A permanent establishment in country A of a company incorporated in country B:

a) is a corporate structure governed by the laws of country B
b) cannot have any commercial activity
c) is taxable in the country of establishment of its mother company
d) is the qualification given for tax purposes to certain activities performed by that company in
country A.
Comment:

11. Mandatory public policy rules:

a) can be overruled by the provisions of a contract, since they express general political
principles
b) cannot be invoked if not expressly stipulated in a law or statute
c) can be judicially overruled
d) can exist at international or at national level.
Comment:

12. The expression: “best efforts” obligations, in a service contract means:

a) that the service provider is allowed to terminate the contract at any time if the expected
result cannot be reached
b) that the service provider will be in breach of its obligations if it does not perform its tasks to
the client’s satisfaction
c) that the service provider is exonerated from any liability since it does not have any result to
reach and deliver to the client
d) that the client must prove a faulty, inaccurate or incomplete performance from the service
provider in order to obtain remedies in case of dissatisfaction.
Comment:

13. An international sale contract concluded under the FAS Incoterm:

a) operates a transfer of ownership upon delivery of the goods alongside the ship for transport
b) operates a transfer of risks upon full payment of the goods
c) operates a transfer of risks upon delivery of the goods to the client’s place of operation
d) operates a transfer of ownership upon signature of the contract.
Comment:

14. Paul purchases a novel at a bookstore and when he opens it, he discovers that it is written
in a language he does not understand.
a) Paul can bring the book back for refund, on the basis of misrepresentation, since the book
was not in a foreign book section of the store.
b) Paul cannot rescind the sale but can sue the store for damages on the grounds of failure of
the store to perform its duty to advise and alert clients
c) Paul can bring the book back and ask for a refund, on the basis of mistake
d) Paul cannot invoke any of the above, since the mistake was his.
Comment:

15. A first demand bank guarantee:

a) remains valid until the commercial contract it relates to expires.
b) remains valid even if the commercial contract is terminated.
c) can be called upon by the creditor despite exculpatory circumstances exonerating the
original debtor from its responsibilities
d) cannot be called upon by the creditor if the original debtor has settled the debt.
Comment: Not sure

16. A consortium is:

a) a corporate structure with a limited purpose.
b) a contract between joint and several co-contractors and their mutual client.
c) a contract between co-contractors, enforceable against their mutual client.
d) a contract between co-contractors of a mutual client, not enforceable against the client.
Comment:

17. A subsidiary in country A of a mother country incorporated in country B:

a) can do business under its own name
b) cannot do business as it is not an independent corporation
c) is a taxpayer in country A on its income but not that of its mother company
d) can do business in country A but its income is taxable in country B
Comment:

18. A hardship situation occuring in the course of performance of a contract:

a) allows the affected party to terminate the contract
b) allows the affected party to force the other one to renegotiate the affected provisions of
their contract, without obligations as to the outcome of such negotiation
c) allows the affected party to suspend performance of is obligations
d) allows both parties to suspend performance of their obligations
Comment: Not sure

19. Force majeure:

a) must affect both parties’ performance to be taken into consideration
b) is proved to exist when performance of its obligations by one party becomes unreasonably
onerous
c) authorizes the affected party to terminate the contract
d) suspends performance of the affected party’s obligations while it lasts.
Comment:

20. Liquidated damages:

a) are the common law equivalent of penalties under civil law
b) are the common law equivalent of direct damages under civil law
c) are enforceable in Singapore whereas penalties are not
d) is a monetary sanction independent from the actual loss suffered.
Comment:

21. Limited liability clauses

a) can limit the amount of damages granted for matters of public policy
b) can exclude damages granted for bodily injury
c) can include limitations on both the amount and the scope of damages
d) must be written in capital letters to be enforceable
Comment:

22. Operating losses

a) are of an indirect nature
b) are of a direct nature
c) are consequential damages that can be both of a direct or indirect nature
d) are of a punitive nature
Comment:

23. The following remedies are cumulative:

a) termination and damages
b) termination and forced performance
c) forced performance and refund of amounts paid
d) refund of amounts paid and damages
Comment:

24. Copyright protection

a) covers algorithms
b) covers trade secrets
c) covers a TV show
d) does not cover inventions
Comment:
25. Patent protection
a) is granted upon registration
b) may only be granted on a country per country basis
c) is granted for 70 years after the death of the inventor
d) cannot be renewed after expiration of its protection period
Comment:

26. Preliminary agreements

a) are not binding as they only govern the negotiation process
b) may include binding obligations, the breach of which may give rise to remedies
c) are contracts, the breach of which may allow the non-breaching party to seek forced
performance
d) can give rise to remedies even if not formalized into actual contracts
Comment:

27. A documentary credit

a) is a means of payment
b) is bank loan granted to the purchaser by the seller’s bank
c) is formalized by a three party agreement between the parties to the commercial contract and
the bank
d) is not available for payment of debts other than arising from the commercial contract
Comment:

28. Consideration in a common law contract:

a) is a condition of contract enforceability
b) represents the amount to be paid in return for the good or service provided
c) must be in proportion of the subject matter of the operation at stake
d) is to be appreciated in light of any reasonable person’s perception.
Comment:

29. in case one party fails to perform its contractual obligations, the other party:
a) has to bring a claim with a competent jurisdiction to enforce sanctions and obtain remedies
b) can suspend performance of its own obligations until the failure is cured
c) can unilaterally cancel the contract
d) can unilaterally terminate the contract.
Comment:

30. Cancellation, termination, unenforciability?

a) a contract is cancelled when one condition of validity is missing
b) a validly formed contract can be retroactively terminated
c) a validly formed contract can be unenforceable
d) a validly formed contract can be cancelled.
Comment: not sure