Section f Test

Task 1 Complete the text using the words in the box:

a) assumption of obligations	d) international transactions	g) enforceable promises	j) transfers of merchandise
b) arbit­ration	e) product	h) legal mechanism	k) land
c) agreements	f) building	i) precommercial societies	l) services

Contract law is the ___(1)____ of a business civilization. It will not be found, in any significant degree, in ____(2)___ .

A true law of contracts — that is, of ___(3)___ - imp­lies the development of a market economy.

Traditional contract law developed rules and principles controlling the voluntary ____(4)____, regulating the performance of obligations so assumed, and providing sanctions for failure to perform.

The sales contract is universally recognized as the ____(5)_____ for conducting trade in goods.

Modern commercial practice relies to a growing extent on _____(6)_____ to handle disputes, especially those that arise in _____(7)____.

Most contracts are _____(8)____. It should now be noted that it is by no means true to say that all agreements are contracts.

Contract law may cover agreements relating to ____(9)____, ____(10)____, ____(11)____, ____(12)____, and other things tangible.

Task 2 Complete the text using the words in the box:

a) enforceable	d) legal	g) plain language	j) official draft
b) legally binding	e) enforce	h) promise	k) consideration
c) commitment	f) value	i) force majeure	l) exchanges

A contract is a ____(13)____ which the law recognizes as creating a legal obligation of performance. A promise creates such a legal obligation and thereby becomes a contract when the four elements previously stated have occurred. The law of contracts deals largely with identifying the ____(14)____ that can be classified as contracts. _____(15)_____ is the essence of a contract. In addition, the following factors must usually be present for a contract to be valid and _____(16)_____.The transnational business contract between the parties should use _____(17)_____ and be as simple, clear, and precise as possible so that the parties can operate under it without outside _____(18)____ help. The contract should be in writing. There should be only one _____(19)____ in only one official language. A contract is _____(20)____ only when each party gives something of ____(21)_____ to the other. This item of value, or ____(22)____, may be money, goods, services or the forbearance (giving up) of a legal right. The law will not ____(23)____ a promise that involves an illegal act. Every contract should have a “____(24)____” clause.

Task 3 Fill in the gaps choosing the correct word. Only one word is correct.

25. If the parties do not come to an agreement, all disputes and differences ______ to arbitration in Helsinki.

a) would be submitted b) will be submitted c) will submit;

26. In contract, Private International Law deals _________ controversies between private persons, natural or juridical, arising out of situations having significant relationship to more than one nation.

a) to b) _____ c) with;

27. The purposes of the UCC are set ____ in one of its initial passages.

a) up b) out c) _____;

28. Article 2 ______ to transactions in goods.

a) applies b) apply c) is applied;

29. The UCC contains and governs _________ of the law applicable to ordinary commercial

transactions.

a) many b) few c) much;

30. The UCC makes uniform the law _________ the various jurisdictions.

a) among b) between c) over;

31. There is a distinct difference between a code and ________ statutory enactments.

a) another b) other c) others

32. A promise or contract _________ if it has been completed or performed.

a) executes b) is executed c) executed;

33. Delivery __________ on January 1 with payment to follow on January 30.

a) is made b) made c) is to be made;

34. Contracts which take more than one year to perform usually __________ in writing.

a) must be b) must c) should be;

35. A lease _____ usually _____ and states the tenant’s right and obligations.

a) writes b) is writing c) is written;

36. Both parties must enter into a contract _________.

a) freely b) free c) free-will;

37. Consideration is legally sufficient when both parties receive what they agreed _____.

a) by b) with c) on;

38. In the event of delay in delivery of the machinery, the Seller __________ pay the Buyer a penalty.

a) is to b) should c) shouldn’t

39. The principal general law _________ contract is the Civil Code.

a) to govern b) governing c) governed

40. Selected types of contracts and agreements _________ by special laws.

a) are governed b) is governed c) governed

41. Vari­ous interpretive rules recognized in foreign trade also ________ an impor­tant role in international commercial relations.

a) played b) will play c) play

42. The parties to a contract can _____ to diverge from certain provisions of the interpretive rules.

a) agree b) to agree c) agreed

43. ________ agreement may be explicit.

a) This is b) These are c) This

44. The purchase contract is _______________ type of contract used in foreign trade.

a) the most important b) most important c) importanter

45. A substantial portion of international commer­cial exchange _________via exchange of goods based on signed purchase contracts.

a) are executed b) is executed c) executed

Task 4 Fill in the missing prepositions. Each is used more than once.

on in to

Modern commercial practice relies ____(46)_____ a growing extent _____(47)_____ arbit­ration to handle disputes, especially those that arise _____(48)_____ international transactions.

Most contracts are agreements. Contract law may cover agreements relating _____(49)_____ transfers of merchandise, land, building, services, and other things tangible. The law is never static; it is always _____(50)____ change, growing or retreating, which also effects notions of justice, and the need for some absolutes.