What Is the Purpose of a Choice of Forum Clause

question 44

Multiple Choice

What is the purpose of a choice of forum clause in an international contract?

• A) to give the parties a choice of nations in which to bring a lawsuit under the contract
• B) to determine in advance where any lawsuits under the contract will be brought
• C) to determine who will choose the location of any lawsuit which is brought under the contract
• D) to determine which nation's law will apply in settling disputes that arise under the contract

---

Definitions:

Interest Rate

The percentage charged on a loan or paid on an investment for the use of money, calculated on an annual basis.

Nearest 0.01%

Rounding to the closest one-hundredth of a percent to simplify precision in calculations or representations.

Equivalent Interest

The interest amount that would be generated by applying a given interest rate, typically expressed as an annual rate.

Equivalent Interest

A term used in finance to describe an interest rate that may have been adjusted to reflect compounding over a different period than the one originally stated.