Question

I. Please mark “True” or “False” to the following statements:

(   ) 1. According to CISG, an offer can be withdrawn only when the withdrawal reaches the offeree before the offer.

(   ) 2. According to CISG, an offer must be sufficiently definite. Therefore a proposal for concluding a contract does not constitute an offer if it does not indicate the time of shipment.

(   ) 3. According to CISG, there must be a time of validity in an offer, otherwise the offer is invalid.

(   ) 4.According to CISG, an acceptance can be revoked by the offeree.

(   ) 5. Parties of an international sale of goods have contractual relationship at the time a written contract is signed.

II. Multiple choices: please choose one or more correct answers for each question:       

(   ) 1. According to CISG, the additions or modifications to which of the following terms

in an offer are considered to alter the terms of the offer materially

        A. price                B. payment    C. packing                   D. time and place of delivery

(   ) 2. A sends a proposal to B saying: “we are making you the following offer subject to our final confirmation”. This is

A. an acceptance B. a counter—offer   C. an enquiry   D. an offer     

(   ) 3. According to CISG, to constitute an offer, a proposal must

A. have a validity term for the offeree to make his acceptance

2. be addressed to specific offeree(s)
3. have the intention of the offeror to be bound in case of acceptance
4. all the terms in a contract are included

III. Please answer the following questions

1. According to CISG, list the conditions for a proposal to constitute an offer.
2. 1. List four situations that may terminate an offer.
   2. What is the legal consequence if an offer has terminated?

3. What is a late acceptance? According to CISG, how about the effectiveness of a late acceptance?

IV. Case study

Company L made an offer to company Y on March 15, subject to reply before March 23.

On March 16, Company Y replied “accept your offer if you reduce your price by 5%”. Company L did not reply. On March 20, Company Y emailed company L “accept your offer of March 15 even without 5% price reduction”.

Question: Is there any contractual relationship between these two companies? Briefly explain why.

Answer 1

I. True or False

1. According to CISG, an offer can be withdrawn only when the withdrawal reaches the offeree before the offer.

False.

Withdrawal of offer can take place only before the offer reaches the offeree and the revocation of the same can takeplace after the offer reaches the offree but before offeree has accepted the sam

2. According to CISG, an offer must be sufficiently definite. Therefore a proposal for concluding a contract does not constitute an offer if it does not indicate the time of shipment.

True.

An offer should be definite and clear. It should clearly mention all the terms and conditions pertaining to the offer so as to avoid future chaos.

(   ) 3. According to CISG, there must be a time of validity in an offer, otherwise the offer is invalid.

False.

offer should be accepted within the time specified in the offer .If time of acceptable is not mentioned,it should ne accepted in reasonable time. Not mentioning time of validity of offer,in an offer,does not make it invalid.

(   ) 4.According to CISG, an acceptance can be revoked by the offeree.

False

Offeree cannot withdraw his acceptance after acceptance has been effective i.e after acceptance is communicated to the offeror.

(   ) 5. Parties of an international sale of goods have contractual relationship at the time a written contract is signed.

True

A written agreement is the one of the basic requirements for an offer to be contract. Contractual relationship exists between two parties of an international sale of goods if the contact is in written form. So that terms and conditins of the contact can bind by both the parties.

II. Multiple choices question:       

1. According to CISG, the additions or modifications to which of the following terms

in an offer are considered to alter the terms of the offer materially

D. time and place of delivery.

changes made in the time and delivery of goods is considered to alter the terms of the offer materially because this forms the basic conditions in the offer. When and where to implement the transaction underlying the offer is material to the contractuak relationship

2. A sends a proposal to B saying: “we are making you the following offer subject to our final confirmation”. This is

D. an offer     

Here the offeror is making an offer to offeree who can either accept or rejaect the same but if he accepts the offer,final decision will be in the hands of offeror.

3. According to CISG, to constitute an offer, a proposal must

C) all the terms in a contract are included.

All the terms in a contact are included in a proposal to be a offer. It should be specific and clear.It should be clearly mentioned the offeree to whom offer is made and time and place of the offer to be executed should also be mentioned. All other terms and conditions should be specific and clear. Also the offeror should have the intention to bind by the offer in case the offeree accept the offer.

III. Please answer the following questions

1. According to CISG, following is list the conditions for a proposal to constitute an offer.

• Two or more persons: proposal should be made to one or more specific persons to constitute an offer. It should be definite to whom proposal is been made. Otherwise it will be treated as an invitation to make an offer
• Should be definite: proposal should be definite. It should specifically mention the price and quantity of goods underlying contract. Other terms and conditions pertaining to the same
• Indication of intend to be bound: the offeror making the offer should have the intention to bind by the offer if the offerree accepts the offer

List four situations that may terminate an offer.

1. Revocation of offer by offeror before the offer is accepted by the offeree
2. Rejction of offer by the offeree
3. If the offeree does not accept the offer within specified time,offer lapses and becomes invalid and gets terminated
4. If either of the parties in the offer: offeror or offerer dies or becomes disable to fulfill the offer

  

IV. Case study

Company L made an offer to company Y on March 15, subject to reply before March 23.

On March 16, Company Y replied “accept your offer if you reduce your price by 5%”. Company L did not reply. On March 20, Company Y emailed company L “accept your offer of March 15 even without 5% price reduction”.

No . There is no contractual relationship between two parties.It is also not acceptance of offer. since the offeree i.e. company Y makes a condition to accept the offer . The offer got revoked as and when the offeree made a condition to accept the offer. There is no relationship between both the parties till the offeror does not make any counter offer nd offeree doesnot accept it thereof.