In an International Contract, Under a Force Majeure Clause, a Party

question 33

Multiple Choice

In an international contract, under a force majeure clause, a party may be excused from liability for nonperformance by

• A) changes in price.
• B) the principal of comity.
• C) an embargo.
• D) corporate office turnover.

---

Definitions:

Indirect Form

Often used in reporting cash flows, an approach that adjusts net income for changes in balance sheet accounts to derive cash flow from operating activities.

Exchange Rate

The value of one currency for the purpose of conversion to another. It determines how much of one currency can be exchanged for another currency.

Reciprocal

Pertaining to a mutual exchange or relationship where two parties give and take symmetrically.

Functional Currency

The currency of the primary economic environment in which an entity operates and generates cash flows.