In an International Contract, a Force Majeure Clause

question 169

Multiple Choice

In an international contract, a force majeure clause:

• A) specifies the contingencies in the event of a specified occurrence contemplated by the parties during the negotiation of the contract
• B) may not be included in a contract for the sale of services
• C) is triggered solely by economic rather than social and political activities and events
• D) an integral part of the arbitration provision when third world governments are involved in the contract
• E) none of the other choices

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Definitions:

Winding Up

The second of two stages in the termination of a partnership or corporation, in which the firm’s assets are collected, liquidated, and distributed, and liabilities are discharged.

Franchisor's Property

Assets, trademarks, or intellectual property owned by the franchisor that are licensed to franchisees under a franchise agreement.

Franchise Territory

a specified geographic area granted to a franchisee in which they have the rights to operate and market the franchisor's business.

Franchise Contract

A legal agreement granting someone the right to operate a business using the franchisor's brand, system, and support for a specified period.