lesson 4

Question 1

What legal instruments determine applicable law in international contract formation?

Answer 1

Rome I Regulation, Rome Convention, Hague Convention (1955), or national conflict-of-laws rules.

Question 2

What are the core elements of contract formation in most systems?

Answer 2

Offer, acceptance, and intention to be legally bound.

Question 3

What is the role of consideration in common law systems?

Answer 3

It is a required element: a party must provide something of value in exchange to create a binding contract.

Question 4

How does civil law approach the concept of mutual obligation?

Answer 4

Through the synallagmatic relation, which assumes mutual obligations are enough to form a valid contract—no need for consideration.

Question 5

How does CISG define the moment of contract formation?

Answer 5

Acceptance becomes effective when it reaches the offeror, or upon performance if allowed by the offer (Art. 18 CISG).

Question 6

What are typical formal requirements that may affect contract validity?

Answer 6

Language, clarity, certainty of terms, communication method, and adherence to national or industry-specific rules.

Question 7

How do national laws differ regarding acceptance?

Answer 7

Some systems (e.g., Germany §151 BGB) allow contracts to form without explicit communication of acceptance if customary.

Question 8

What case illustrates binding contracts that are not sales contracts?

Answer 8

Esso Petroleum v Commissioners (UK, 1976): contract was binding but not a sales contract (so no sales tax applied).

Question 9

Why is understanding legal traditions important in contract drafting?

Answer 9

Because formation rules, enforceability, and interpretation differ significantly between legal systems, impacting contract validity and risk.