In the Contract Between Canada Oil Company and the Government

question 27

Multiple Choice

In the contract between Canada Oil Company and the Government of Iran for the supply of Iranian crude oil, there is a clause that allows either party a period of one year to bring forward to court any claim arising from events subject to the contract. Any claim raised after one year from the events which give rise to it is agreed to be unenforceable. Had the parties not provided for this themselves, the common law would have provided a somewhat similar measure, represented by the doctrine of

• A) force majeure.
• B) option to terminate.
• C) condition subsequent.
• D) condition precedent.
• E) frustration.

---

Definitions:

Growth

Achievement of a critical mass in the business, a point at which an adequate living is provided for the owner and family, with enough growth remaining to keep the business going.

Success-Disengagement Stage

A phase in the lifecycle of a business or career wherein achieving substantial accomplishments leads to reduced engagement or stepping away from active roles.

Supervision

The act of overseeing and managing the performance and productivity of employees to ensure tasks and objectives are accomplished.

Cash Flow

The sum of net income plus any noncash expenses, such as depreciation and amortization, or the difference between the actual amount of cash a company brings in and the actual amount of cash a company disburses in a given time period.