If a Foreign Investor Is Prohibited by the Host Country's

question 83

Multiple Choice

If a foreign investor is prohibited by the host country's laws from owning a majority of a joint venture,another way to gain operational control is:

• A) Secretly to have other foreign nationals invest money in trust for the investor.
• B) To use American management techniques with cumulative voting for the board of directors.
• C) To surround the joint venture with contractual obligations to the foreign investor.
• D) A and C.

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Definitions:

Objective Impossibility

This term describes a situation where the fulfillment of a contract's obligations cannot be carried out by anyone due to external circumstances, such as the destruction of something necessary for performance.

Subjective Impossibility

A situation where completing a contract's obligation is impossible due to circumstances personal to the obligated party.

Performance

in the context of contracts, refers to the execution of duties or the fulfillment of obligations specified in the contract.

Substantial Performance

A legal concept indicating that a party has completed the major obligations of a contract, even if minor details were not completed, often entitling that party to payment.