Question 1

Under a device known as nachfrist notice,the CISG allows either party -- buyer or seller -- to fix an additional period of time,beyond the date called for in the contract,for the other to perform.

Accepted Answer

The statement is true. The CISG allows either party to fix an additional period of time for the other party to perform under the mechanism known as nachfrist notice.

Question 2

The CISG is inflexible as to making sure that goods are delivered on a specified date.

Accepted Answer

The CISG allows for flexibility in the delivery of goods, including provisions for curing defects in performance within the delivery period, thus not strictly mandating delivery on a specified date without allowance for adjustments.

Question 3

To use the concept of impossibility of performance as an excuse for nonperformance of a contract requires that the performance be objectively impossible.

Accepted Answer

The concept of impossibility of performance as an excuse for nonperformance of a contract requires that the performance be objectively impossible, meaning that no person could perform it under any circumstances. If the performance is only subjectively impossible, meaning that it is difficult or expensive to perform but not completely impossible, it does not excuse nonperformance of the contract.

Question 4

The following sales are excluded from the CISG:

Accepted Answer

The sale of ships and aircraft is explicitly excluded from the scope of the CISG. The sale of industrial equipment and consumer goods is not excluded and can be subject to the CISG. Therefore, only option C is correct.

Question 5

Under common law,the "mirror image" rule under contracts,require the acceptance by the offeree is definite and unconditional that matches the offer exactly.

Accepted Answer

The mirror image rule requires the acceptance to be a precise and unqualified acceptance of the offer.

Question 6

Article 16,of the CISG an effective acceptance is effective when it reaches the offeror.

Accepted Answer

According to Article 16 of the CISG, an acceptance is effective and a contract is formed at the moment that the acceptance is received by the offeror.

Question 7

A seller's employees go on strike,is this a commercial impossibility a valid legal excuse for not performing under a sales contract.

Accepted Answer

A strike by a seller's employees is a foreseeable event and can be covered by a force majeure clause in the sales contract. It is not considered a commercial impossibility and the seller would still be expected to perform.

Question 8

A force majeure clause serves as a general excuse for nonperformance of a sales contract in all situations.

Accepted Answer

While a force majeure clause can excuse nonperformance during certain unforeseen and uncontrollable events such as natural disasters or government actions, it does not cover every situation and its application is dependent on the specific language included in the contract.

Question 9

Commercial impracticability is an excuse for nonperformance of a contract if it adds more than 20% to the cost of completing performance.

Accepted Answer

Commercial impracticability is an excuse for nonperformance of a contract if the performance becomes completely impossible or illegal, not just if it adds more than 20% to the cost of completion. This concept is known as the doctrine of impossibility or impracticability.

Question 10

Where no price term is fixed under CISG,there is no way to have a valid sales contract.

Accepted Answer

According to Article 55 of the CISG, where a contract is concluded without any indication of the price, the parties are considered to have impliedly made reference to the price generally charged at the time of the conclusion of the contract for such goods sold under comparable circumstances. Therefore, even if no price term is fixed, a valid sales contract can still be formed under CISG.

Question 11

The uniform Commercial Code has been approved by all fifty states without any changes.

Accepted Answer

While the Uniform Commercial Code (UCC) has been adopted by all fifty states, each state has the ability to make modifications to the code before adoption. Therefore, there may be slight variations in the UCC from state to state.

Question 12

Under the UCC,between merchants,an offer may not be revoked if it is made in a signed writing that gives assurance that it will remain open for a stated period of time.

Accepted Answer

This statement is true according to the UCC (Uniform Commercial Code). Under the UCC's Section 2-205, an offer made by a merchant in a signed writing can be irrevocable for a maximum of three months unless stated otherwise in the agreement. This is known as the Firm Offer Rule or the Merchant's Firm Offer.

Question 13

The CISG says that the remedy of specific performance is allowed where the domestic laws of a country allow such a remedy.

Accepted Answer

The CISG Article 28 states that "If the goods do not conform with the contract and whether or not the price has already been paid, the buyer may require delivery of substitute goods only if the lack of conformity constitutes a fundamental breach of contract. In cases where the lack of conformity does not constitute a fundamental breach of contract, the buyer may only require the seller to remedy the lack of conformity by repair, unless the seller is entitled to replace the goods under paragraph (2) of article 46." This means that specific performance can be allowed as a remedy in CISG jurisdictions where domestic law allows it.

Question 14

Contract law in all countries require that there be mutual assent in the establishment of a contract between the parties.

Accepted Answer

Mutual assent, also known as a meeting of the minds, is a fundamental requirement for the formation of a legally binding contract in all countries. Both parties must agree to the terms and conditions of the contract before it can be enforceable.

Question 15

In certain cases,a court excuses nonperformance of a contract where an unexpected and unforeseeable event occurs that frustrates the purpose of the contract.

Accepted Answer

This legal doctrine is known as "frustration of purpose" and allows for nonperformance in such circumstances. However, it is important to note that the event must truly be unexpected and unforeseeable, and the frustration must be significant enough to make performance impossible or entirely different from what was originally intended.

Question 16

The CISG requires that an acceptance materially altering the terms of the offer be approved by the original offering party.

Accepted Answer

Under the CISG, an acceptance that materially alters the terms of the offer does not constitute acceptance but rather a counter-offer, unless the offeror expressly approves the alterations.

Question 17

The Uniform Commercial Code has provisions applicable to international business allowing substituted performance.

Accepted Answer

The UCC does have provisions for substituted performance in international business transactions. Specifically, Section 2-614 allows for a party to provide a substitute performance if they are unable to perform their obligations due to an event that is beyond their control, such as a labor strike or natural disaster. This provision applies to both domestic and international transactions.

Question 18

A and B have entered into a sales contract.If it becomes apparent to A that B might not perform a substantial part of his bargain as promised,A may:

Accepted Answer

If it becomes apparent that the other party may not perform, the party can suspend their own performance until they receive adequate assurance of performance.

Question 19

A,a New York firm,sends a purchase order to B in Sweden.A standard clause on the purchase order states that "All disputes are to be heard in the courts of New York." B confirms using its standard form,which states that "all disputes are to be resolved in arbitration before the ICC,Sweden." Under the CISG:

Accepted Answer

This scenario represents a battle of forms, where both A and B have tried to impose conflicting terms on each other. In such cases, the last set of terms sent before the agreement is reached typically govern the contract. Here, B's confirmation with its standard form stating that disputes should be resolved through arbitration before the ICC in Sweden was a counteroffer that A did not accept. As a result, no agreement was reached between the parties, and no contract exists.

Question 20

Price reduction is not available as a buyer's remedy for the seller's breach under the CISG if:

Accepted Answer

Under the United Nations Convention on Contracts for the International Sale of Goods (CISG), price reduction is a remedy available to the buyer when the goods delivered by the seller do not conform to the contract. However, this remedy is not available in situations where the seller has delivered conforming substitute goods, the buyer has refused the seller's attempt to cure the breach, or the buyer has avoided the contract and refused delivery. These scenarios indicate that the contract's obligations have been altered or ended in ways that make the remedy of price reduction irrelevant or inapplicable.

Quiz 4: The Formation and Performance of Contracts for the Sale of Goods