CCNP International Contracts 3

Question 1

A force majeure clause in an international contract typically requires which of the following for a party to be excused from performance?

Accepted Answer

The event was unforeseeable, beyond the party's control, and unavoidable

Answer

Force majeure requires proof that the event was unforeseeable, beyond the affected party's control, and could not have been avoided or overcome.

Question 2

Which of the following best describes 'sovereign immunity' as a concern in international contract negotiations?

Accepted Answer

A government entity may claim immunity from suit in foreign courts

Answer

Sovereign immunity allows a state or state entity to claim protection from foreign court jurisdiction, making collection of judgments difficult.

Question 3

In a contract between a US buyer and a German seller, the CISG would apply automatically unless:

Accepted Answer

Both parties expressly exclude it in the contract

Answer

The CISG applies automatically between parties in contracting states but can be excluded by the parties' express agreement.

Question 4

An anti-bribery clause in an international commercial contract is primarily included to ensure compliance with:

Accepted Answer

The US Foreign Corrupt Practices Act (FCPA) and UK Bribery Act

Answer

Anti-bribery clauses reflect compliance obligations under the FCPA and UK Bribery Act, which impose liability on companies for corrupt payments to foreign officials.

Question 5

When negotiating payment terms in an international contract, a 'documentary letter of credit' primarily benefits the:

Accepted Answer

Seller, by ensuring payment upon presentation of compliant documents

Answer

A documentary letter of credit protects the seller by guaranteeing bank payment once compliant shipping documents are presented.

(CCNP) Certified Contract Negotiation Professional Practice Test

(CCNP) Certified Contract Negotiation Professional Practice Test

CCNP International Contracts 3