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Commercial Contracting L4M3 Exam Questions

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Question #6 (Topic: Demo Questions)

Which of the following is likely to reduce risks of different rules regarding when offers and acceptance become effective between legal systems?

A.

Withdrawal protocol


B.

Letter of intent


C.

Time lapse


D.

Deemed receipt protocol

Correct Answer: D
Explanation:

Regarding rule of offer and acceptance, there are some differences among legal system around the world. For example, mailbox rule is generally applied in common law countries such as UK, US, Australia,.. while it is ignored in civil law countries. To clarify on rule of offer and acceptance in international trade, offerors may use expressed terms in their offers. These terms known as deemed receipt protocol.

[Reference: CIPS study guide page 35, LO 1, AC 1.2, , , ]
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