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Chapter1

AnswerstoSelf-Quizzes

1.F.Itregulatesbothhorizontalandverticallegalrelationship.

2.T.

3.F.Abusinesstransactionisinternationalifitssubject,object,orcontentsisacrossnational

borders.

4.F.TradeinserviceandIParealsoimportantpartofinternationalbusiness.

5.F.Whenstatesandtheirsubdivisionsconductcommercialactivities,theyarepartiesin

horizontallegalrelationship.

6.F.UNIDROITisanind印endenlIGO.

7.T.

8.F.ICSIDspecializesininvestor-stateinvestmentdisputes.

9.T.

10.F.WTOcreatesamultilateraltradingsystem.

11.F."Thethreesisters"informulatingprivatelawreferstoHCCH,UNIDROIT,andthe

UNCITRAL.

12.F.TheHCCHspecializesinharmonizingconflictoflaws.

13.T.

14.T.

15.F.JudicialinterpretationsissuedbytheSupremePeople'sCourtisalsoapartofnationallaw

inChina.

16.F.Freetradeareaisthefirst,alsoloweststageofeconomicintegration.

17.T.

18.T.

19.F.NAFTAisafreetradearea.

20.F.Customsrelatedtotrademustmeetthebehavioralelementandpsychologicalelementin

ordertobecomeinternationaltradecustoms.

21.F.TheIncoterms?isonlyusedintradeingoods.

22.T.

23.T.

24.F.Civillawsystemisbasedoncodes.

25.T.

26.T.

GuidingQuestions:

1.WhatarethedifferencesbetweentheCivilLawSystemandCommonLawSystem?

Answers:

LegalSystem

CivilLawSystemCommonLawSystem

c

StatusoflawIndependentofgovernmentSuperiortogovernment

Basedonspecific

LegalrulesBasedongeneralprinciples

circumstances

ScopePrivatelawPrivatelaw,publiclaw

BasicsourceCodesCaselaw

MostinfluencedbyLegislatorsJudges

ReasoningDeductiveInductive

ProceduralInquisitorialAdversarial

FactfinderJudgeJury

UseofcaselawasprecedentsRespectedRequired

Specialagencyorcategoryof

ConstitutionalreviewbyRegularcourts

courts

ReviewofgovernmentSpecialagencyorcategoryof

Regularcourts

agenciescourts

2.InGrantvAustralianKnittingMillsLtd[1936],isthecourtcorrectinfollowingthe

precedentofDonoghuevStevenson[1932]?

Answers:

(1)Whatisthedoctrineofprecedent?

Thedoctrineofprecedentrequiresthatthepreviousprecedentbefollowedbythelatercaseif

thebasicfactsoflatercasearesubstantiallysimilartotheprecedent.Buttheprecedentbinds

onlyonthecourtthatdecidedthecaseandonthecourtsofinferiorrankinthesamejudiciary

hierarchy.

(2)Towhatextent,arethefactsofGrantv.AustralianKnittingMillssimilartoDonoghuev.

Stevenson?

BasicfactsPrecedentLatercase

DonoghuevGrantvAustralianKnittingMills

Stevenson

PlaintiffMs.DonoghueMr.Grant

Plaintiff'sLegalidentityConsumerConsumer

Defendant'slegalidentityManufacturerManufacturer

SufferingsSickshockSkindisease

CauseofactionTortTort

DecisionNeighborprincipleFollowtheprecedent

Chapter2

AnswerstoSelf-Quizzes

1.False.Chinaisaunitarycountryandhasneitherfederalnorprovincecourtsystem.

2.False.TheUSSupremeCourthasdiscretiontohearjudgmentsappealedfromthehighest

courtinastate.

3.False.Chinahasthesystemof“fourlevelsandtwoinstancesoftrials/

4.False.Aforeignercanbesubjecttoinpersonaljurisdictionofacountryifthisindividual

physicallypresentwithinthecountryorconsenttothejurisdictionofthecountry.

5.True.

6.False.USlawhasnowrittenrequirement.

7.True.

8.True.

9.True.

10.False.Plaintiffscannotresistforumnonconveniensonthebasisofunfavorablesubstantive

lawinalternativeforums.

11.False.Courtsshouldconsidercomitywhengrantinganti-suitinjunction.Generallywhenthe

foreignproceedingsarevexatiousoroppressiveorwhentheywillotherwisecause

inequitablehardship,acourtmayissueananti-suitinjunction.

12.True.

13.True.

14.False.Anti-dumpingandanti-monopolyregulationsaremandatorylawsinChina.

15.False.Courtsinthetwocountriesmaynotinterprettheprincipleinthesameway.

16.True.

17.False.Recognitionisoftenconfinedtonon-monetaryjudgments.

18.False.InChina,recognitionandenforcementofforeignjudgmentscanbeconducted

accordingtotheprincipleofreciprocityandaccordingtotreatiesconcludedbyChina.

19.False.Currently,Chinesecourtsprefertheviewof''reciprocityinpractice//

20.False.TheUSdoesnotrequirereciprocitytorecognizeandenforceforeignjudgments.

However,inthefuture,theUSmayimposethereciprocityrequirementinorderto

encourageforeigncourtstorecognizeandenforceAmericanjudgments.

21.False.TheHagueChoiceofCourtConventionrequiresanexclusivechoiceofcourt

agreement.

22.True.

23.False.ChinamakesareservationonservicebypostwhenaccedingtotheHagueService

Convention.

24.True.

25.False.Generallyarbitrationproceedingsshouldnotbeopentothepublic.

26.True.

27.False.Adhocarbitrationisanarbitrationconductedwithouttheassistanceofanarbitral

institution.

28.True.

29.False.Theseatofarbitrationmaynotbethesameastheplaceofhearing.

30.False.Theprimarysourceofthetribunafspowersistheparties1arbitrationagreement.

31.True.

32.True.

33.False.Competence-Competencemeansthatanarbitraltribunalcandetermineitsown

jurisdiction.

34.False.Arbitrationproceduresmustcomplywiththefundamentalprinciplesofnaturaljustice

anddueprocess.

35.True.

36.True.

37.False.The1958NewYorkConventionregulatestherecognitionandenforcementof

non-ICSIDarbitralawards.

38.True.

39.True.

40.False.Ifanarbitralawarddealswithdisputesoutsidethescopeofarbitrationagreement,this

awardmaybepartiallyorwhollysetaside.

41.True.

42.False.ICSIDonlydealswithinvestor-statedisputes.

43.True.

44.True.

45.False.WTOAppellateBody'sdecisionisfinal.

46.True.

47.True.

GuidingQuestions:

Case1

QuestionA:

Answer

IftheCountryLisChina

PartFourSpecialProvisionsoftheCivilProceduresInvolvingForeignElementsofChineseCivil

ProceduralLawprovidesthat:ifalawsuitbroughtagainstadefendantwhohasnodomicilein

Chinaconcerningacontractdisputeorotherdisputesoverpropertyrightsandinterests,if:

?thecontractissignedorperformedwithinChina,

?theobjectoftheactioniswithinChina,

?thedefendanthasdetainablepropertywithinChina,or

?thedefendanthasitsrepresentativeagency,branch,orbusinessagentwithin

China,

thedefendantmaybeunderthejurisdictionofthepeople'scourtlocatedintheplacewherethe

contractissignedorperformed,thesubjectoftheactionislocated,thedefendant'sdetainable

propertyislocated,theinfringingacttakesplace,ortherepresentativeagency,branchor

businessagentislocated.

YoumayapplytheaboveChineselawtothefactsofthecasetoreachananswer.

2.IftheCountryListheUS

TheUScourtwillapplythe“minimumcontacts'"testtodeterminewhetherthecourtcanexercise

personaljurisdiction.Thecourtshouldconsider:

Whetherthecompanyhasperformedactsthatrelatetotheforumcountry;

Whetherthesuitisbasedonthoseacts,and

Whetherthecompanyhasindicatedbyitsconductthatitintendedtorelyonthebenefits

(suchasdoingbusiness)oftheforumcountry.

Whethertheexerciseofjurisdictionbeunfairandunreasonable,takingintoaccountthe

interestsofthedefendantandplaintiff,theforumcountryandotherstatesthatmayhave

aninterestinthematter.

YoushouldapplytheaboveUSlawtothefactsofthecasetoreachananswer.

3.Notably,courtsinChinaandtheUSmayuseforumnonconvenienstodismissthesuit.Discuss.

QuestionB:

Answer

Choiceoflawrulesfollowatwo-stepprocedure:

?First,ifthepartiestoadisputehaveconcludedachoiceoflawclause;

?Second,ifthepartieshavenotagreedastowhichlawshouldapply(eitherexpresslyor

impliedly),thenthecourtshoulddetermineforitselfwhichlawitshouldapplyby(1)

followingstatutorychoiceoflawprovisions,(2)determiningwhichcountryhasthemost

significantrelationshipwiththedispute,or(3)determiningwhichcountryhasthegreatest

interestintheoutcomeofthecase.

Inthiscase,partieshavenotmakeachoiceoflawclause,so

ChinesecourtwillfollowtheLawoftheApplicationofLawforForeign-relatedCivil

RelationsofthePRC.

TheUScourtwillfollowthemostsignificantrelationshipandapplythegovernmental

interesttest.

Youshouldcombinethefactsofthecasewiththeaboveguidancetoreachananswer.

Case2:

Answer

Anarbitrationagreementcaneitherbesignedbybothpartiesorincorporatedfromotherlegal

documents.Itisvalidaslongasitisinwriting.Inthiscase,Contract2makesreferencetoa

writingarbitrationclauseinContract1insteadofincludingoneinit.Itisundisputedthatthe

arbitrationclauseinContract1isvalid.ItremainsvalidwhenincorporatedintoContract2.

Therefore,thereisavalidarbitrationclauseinContract2.

Case3:

Answer:Chinashouldconsideradopt"/reciprocityinlaw“inrecognizingandenforcingforeign

judgments,because

?Reciprocityinpracticeissubstantiallyarevengeonajudgment-renderingcountrythat

deniesrecognitionandenforcementofforeignjudgments.However;therequestedcountry

revengesaprivatepartynotthejudgment-renderingcountryitself.Therefore,itrevengesa

wrongtarget,especiallywhenthewinningpartyofaforeignjudgmentisacitizenofthe

requestedcountry.

?Reciprocityinpracticeseldomsuccessfullypushesajudgment-renderingcountryto

recognizeandenforceajudgmentissuedbyarequestedcountry.Thereasonisthatdenying

recognitionandenforcementofforeignjudgmentsdoesnotseriouslyharma

judgment-renderingcountry.Therefore,therevengeishardtobesuccessful.

?Itisdifficulttoprovecourtsinajudgment-renderingcountryhaveeverrecognizedand

enforcedjudgmentsissuedbyarequestedcountry.

Chapter3:

AnswerstoSelf-Quizzes

1.False.Owner'spersonalliabilityisaveryimportantfactorinselectingtousewhichformof

businessorganization.

2.False.Anotherpurposeofregisteredcapitalrequirementistooffersomeprotectionto

creditorsincasethebusinessfails.

3.True.

4.False.

5.False.StartinginMarch2014,theminimumregisteredcapitalofRMB30,000isnolongera

legalrequirementinChina.

6.False.IntheU.S.,therequirementonRegisteredCapitalvariesfromstatetostate.

7.True.

8.True.

9.False.Onlysingle-individualownedenterprisecanhavebranchoffices;IICHcannot.

10.False.IICHcanoperateeitherunderatradenameorintheowner'sownname.

11.False.ToestablishaPartnershipEnterprise(eitherageneralpartnershiporalimited

partnership),onehastofiledocumentswithlocalgovernmentagenciesinChina.

12.False.Certainpersonscannotbegeneralpartnersinapartnershipenterprise,suchas

state-ownedentities,publiccorporations,non-for-profitenterprisesandpeopleholding

specialpositions,suchaspolice,prosecutors,orjudges.

13.False.Thepartnershipagreementforlimitedpartnersisprohibitedbylawtoallocateall

lossestocertainpartners,butisOKtoallocateallprofitstocertainpartners.

14.False.AlimitedpartnerinalimitedpartnershipinChinacan'tcontributelaboras

contribution.

15.False.Partnersinageneralpartnershipcannotcompetewiththegeneralpartnership's

business.

16.False.PartnersdonotneedtofilewiththeSecretaryofStatetoformageneralpartnership.

Aslongaspartnersassociatethemselvesasco-ownersandsharetheprofitsandloss

togethecageneralpartnershipcanbedeemedtobeformed.

17.True.

18.True.

19.False.Aformalwrittenpartnershipagreementisnotnecessarilyrequiredtoformageneral

partnership,aslongaspartnersassociatethemselvesasco-ownersandsharetheprofitsand

losstogether,ageneralpartnershipcanbeformed.

20.True.

21.True.

22.True.

23.True.

24.True.

25.True.

26.True.

27.False.ShareholdersofaLimitedLiabilityCorporationinChinacannotexceed50,and

initiatorsofaCorporationbySharecannotexceed200.

28.False.ForLimitedLiabilityCorporation,asitisaprivatecorporation,transferofsharesneeds

consentofothershareholders.ForaCorporationbyShare,asitisapubliccorporation,

sharescanbefreelytransferredandneedsnoconsentofothershareholders.

29.True.

30.True.

31.True.

32.True.

33.False.TheBusinessScopewillbeshownbothintheBusinessLicenseandtheArticlesof

Associations.

34.False.TheU.S.,notChina,requirescorporationstohaveaRegisteredAgent.

35.False.TheU.S.hasScorporationandCcorporationduetoitstaxcode,butChinadoesnot

haveScorporationandCcorporation.

36.False.CorporategovernancemattersarenormallygovernedbytheU.S.statelaws.

37.False.Thedoctrineof“PiercingtheCorporateVeil"imposesliabilityonshareholdersthat

abusetheseparatestatusofacorporation.Soifsuchshareholderisaparentcompanyof

suchcorporation,liabilitycanalsobeimposedontheparentcompany.

38.True.

39.False.Scorporationlimitsitsshareholderstonottoexceed75.

40.False.Thesharesofapubliccompanycanbeboughtorsoldatapublicsecuritiesmarket,

whilethesharesofaprivatecompanycannot.

41.False.ChinahasthelegalrequirementofBusinessScope,buttheU.S.doesnot.

42.True.ForChina,itisAdministrationofIndustryandCommerce,andfortheU.S.,itisthe

SecretaryofState.

43.False.ChinesecorporationsshallhaveSupervisor/sCommitteeorExecutiveSupervisor,but

notU.S.corporations.

44.False.TheBusinessJudgmentRuleisintendedtoprotectmanagement,suchasdirectors,

officers,ormanagers,fromliabilitiesarisingfromthemanagementdecisionstheymade,as

longasthosemanagementdecisionsareingoodfaithandwithreasonableskillsand

prudence.

45.No.ChinadoesnothaveLLCasaformofbusinessentity.China'sLimitedLiabilityCorporation

isnotthesameconceptasLimitedLiabilityCompanyintheU.S.

46.True.

47.True.

48.False.IncertainstatesintheU.S.,single-memberLLCisalsopermitted.

49.True.

50.True.

51.False.LLCintheU.S.isan"unincorporated"form,whileLimitedLiabilityCorporationisa

“corporate"form.

52.False.Branchofficedoesnothaveaseparatelegalstatus,anditsdebtsandobligationsare

ultimatelybornbyitsparentcompany.

53.True.

54.False.Onlyaforeign(non-Chinese)companycanestablishaRepresentativeOfficeinChina.A

Chinesecompanycanestablisharegularbranchoffice.

55.False.ARepresentativeOfficecanonlyengageinnot-for-profitactivitiesforitsforeignparent

company.

56.False.

57.True.

58.False.Whilethesharesofasubsidiaryarecontrolledbyitsparentcompany,thesubsidiaryis

alegalentityseparatefromitsparentcompany.

59.True.

60.True.Whenaparentcompany(astheshareholder)abusesthelimitedliabilityandusesthe

subsidiaryasashell,suchparentcompanycouldbeliableforthedebtsorobligationsofthe

subsidiaryunderthetheoryof"PiercingtheCorporateVeil.”

GuidingQuestions:

Case1:

QuestionA:

Answers:

1)IfXiaominglikestostartaone-manshop,hecanchooseSingle-ShareholderLimited

LiabilityCorporation,whichallowsXiaomingtolimittheliabilitytotheamountof

contributionheplanstomakefromhispersonalsavingsandneednottoworryaboutrisking

hispersonalapartmentorcarifthebusinessfails.Inaddition,itwillallowhimtooperate

branchofficesinthefuture.

2)IfXiaomingcanfindothershareholder(s),hecanchooseLimitedLiabilityCorporation.He

cancontributehisengineeringskillsascontributiontothecorporation.AndLimitedLiability

Corporationofferslimitedliabilityandcanestablishbranchofficeslateron.

3)XiaomingmayalsoconsiderLimitedPartnershipifheisabletofindotherpartners(whois

eitheranindividualoranentity)whoarewillingtoactasgeneralpartnersinalimited

partnership.PleasenotethatXiaomingcanonlyactaslimitedpartner;whosestatusoffers

limitedliability.However;thedrawbackisXiaomingcannotreallyactivelyparticipateinthe

managementoflimitedpartnership,andhecannotcontributehisengineeringtalentsor

skillsascontributionifhewants.ThisdrawbackmayimpedeXiaoming'sbusinessplanifhis

involvementislimited.

4)Soleproprietorship(eitherIndividualIndustrialandCommercialHouseholdor

Single-IndividualOwnedEnterprise)maynotworkforXiaoming,asthesoleproprietorship

hastheunlimitedpersonalliabilitythatdoesnotfitXiaoming'sneeds.

5)GeneralPartnershipmaynotworkforXiaoming,ashelikestheideaoflimitedliability,but

thepartnersingeneralpartnershipbearunlimitedliability.

QuestionB:

Answers:

1)IfXiaomingwantstodoone-manchop,hemayconsiderLimitedLiabilityCompanybutonly

ifthestateheplanstoregistertheLLCallowssingle-memberLLC.Somestatesdonotallow

single-memberLLC.

2)XiaomingcanalsoconsiderSCorporationasthesoleshareholder;butonlyifXiaomingisa

UScitizenorresidentalien(greencardholder).IfXiaomingisaChineseanddoesnotholda

USgreencard,hecanthenconsiderCCorporation,whichhasnolimitationofnationalityor

residencerequirement.

3)IfXiaomingisabletofindotherpartnerstoactasgeneralpartners,hecanchooseLimited

Partnershipandactasalimitedpartnerandenjoyslimitedliability.Buthisinvolvementin

managingthepartnershipmaybelimited.

4)Similarly,SoleProprietorshiporGeneralpartnershipmaynotworkforXiaomingduetothe

concernsofunlimitedliability.

Case2:

QuestionA:

Answers:

1)Asthedirectorforthecorporation,JohnandMarybotharechargedwithfiduciarydutyto

thecorporation,byactingingoodfaithandforthebestinterestofcorporation.

2)Johnviolatedthedutyofcarebyexploitingthebusinessopportunitythatbelongstothe

corporation,thusdamagingtheinterestofthecorporation,becausethecorporationcould

havehadtheopportunitytoexpandtotheadjacentspace.

3)Maryviolatedthefiduciarydutybynotexercisingduecaretothefinancialstatusofthe

corporationandnotdiligentlysupervisingthebusinessofthecorporation.

QuestionB:

Answers:

1)Johnabusedthecorporatestatus,byminglingthecorporatefundswithhispersonalneeds,

andmayassumeunlimitedliabilityunderthetheoryof"PiercingtheCorporateVeil/

2)Asthecorporationgoesinsolvent,BrianandScottwilllimittheirliabilitytotheirinvested

amount,butJohnwillneedtobeliableforthecorporation'sdebtsofUSD100,000dueto

theunlimitedliabilityimposedunderthe'TiercingtheCorporateVeil/

Chapter4:

AnswerstoSelf-Quizzes:

1.False.Contractualrelationisoneoflegalrelations,butviceversa.

2.True

3.False.Unenforceablecontractislegal,butenforceableasitisunabletobeevidenced

4.True.

5.True.

6.False.Oralcontractcouldbeeitherimpliedorexpressone.

7.False.Thecontractisnotabsolutelyformulatedunlessyourlegalintentionofcontractmaking

isobjectivelyclearjudgedbyareasonablethirdparty.

8.False.Commonlawshowsthatevenanalready-performedbusinesscontractcouldbe

renderednon-legal.Ifbothpartiesagreedtosubjectthecontracttohonor,ratherthanlaw.

9.False.Thecoupleinwedlockcouldmakealegallyvalidagreementbeforedivorce.

10.True.

11.False.Offeree'schangeinthecontentoftheoffermayresultinarejectiontotheoffer

(counter-offer),butalsomayresultinanoptiononlyfortheofferortowillinglyrecognizethe

changeofcontentifthechangeinnotmaterialasstipulatedinCISG.

12.True.

13.False.Itshouldbeacceptedwithinreasonabletime

14.False.

15.False.Offerandacceptanceofwhateverkindofformcouldformulatecontract.

16.False.Commenceruleisnotapplicabletooffer.

17.True.

18.True.

19.False.Postruleisnotapplicabletooffer.

20.False.Theexpiredacceptancewillbebecomeautomaticallyinvalideventheofferordoesnot

care.Thatis,thechangeoflegallyvalidacceptancedependsonlaw,notontheofferor's

personalopinion.

21.False.Thethirdpartyisnotentitletoacceptingtheofferasabilityofperformingthecontract

isnotthequalificationsetfortheformationofcontract

22.True.

23.False.B'sresponseisnotanacceptance,justahope.

24.False.Notabsolutely

25.True.

26.True.

27.False.Thistransactionappearsbeyondlegalcapacityof9yearchildanditisnotabusiness

fornecessityeither.

28.False.Notabsolutelyasamentallyunsoundpeopleisnotalwaysunsoundinhismind.

29.True.

30.False.Theactofdrugtakingisacrime,butthecontractmadebythedrugtakerisnotacrime,

whichshouldstillbelegallyprotectedintheprincipleoffairness.

31.True.

32.True.

33.False.Unilateralmistakerisstillexcusableiftheconsequentialcontractisinviolationof

fairness.

34.False.Ruleofnonestfactumrequiresboththemistakerbeingextremelydisabledand

fundamentalmistaken.

35.False.Inadditiontoit,unilateralmistakerequiresmistakemustbeseriousone.

36.True.

37.True.

38.True.

39.True.

40.True.

41.True.Threatperseisnotaduress.Lawsuitisregardedasgoodandlegalthreat

42.False.Itisnotaduressincontractualsense.

43.True.

44.True.

45.True.

46.True.

47.False.Economicabilityisthefactortoconsiderunconscionableconduct.

48.True.

49.False.TheChineselawcontractrequiressalesofgoodsbeingevidencedbyanybusinessform,

eitherBywritingorwitness.

50.True.

51.False.Thecorrespondenceforpaymentcheckup(對(duì)賬確認(rèn)函),debitconfirmation(債權(quán)確認(rèn)

書(shū)),arewrittenformsofcontractaccordingtotheChineselawandwellrecognizedby

Chinesecourtascontract

52.False.Breachduringthetimeofperformanceisnotanticipatorybreach.

53.False.Iftheanticipatorybreachdoesnotcausedamagetotheinnocentparty,noremedies

maybeavailable.

54.True.

55.True.

56.True.

57.True.

58.True.

59.False.Damagesareatermformonetarycompensation.

60.True.

61.True.

62.True.

63.False.Notunexceptionally.

64.True.

65.True.

66.True.

67.True.

68.False.Theinnocentparly'sexercisehisrighttorescindthecontractisoneofhischoices,he

maytreatthefundamentalbreachasnon-fundamentaloneandnottorescindthecontract.

69.False.Remedyisnotavailabletotheaggrievedifthebreachistheresultofforcemajeure

eventagreedinthecontractexemptingthebreachingpartyfromliability.

70.True.

71.True.

72.True.

73.True.

74.True.

75.True.

76.True.

77.False.Itisstillavailabletotheplaintiffanymore.

78.True.

79.True.

80.True.

81.True.

82.False.Remedyofspecificperformancemaygotogetherwithdamages

83.True.

84.True.

GuidingQuestions:

Case1:

ANSWER:

TheChinesecourtheldasfollows:

?AccordingtoChinesecontractlawthiscontractisnotvalid,thoughbothparties

havereachedanagreement.

?Itisinvalidbecausetobuyuniversityqualificationquotaisviolatingsocialpublic

interest,theprinciplesoffairness,justiceandopenness.Sothiscontractisan

illegalcontract,voidfromverybeginning.

?Mr.ChenwasnotjustifiedtokeeptheremainingmoneyCNY170,000andshould

returnittoMr.Xie,whichmustbeperformed30daysafterthisdecisionbecome

effective.

?MrXie'sclaimforinterestoftheprincipalofCNY170,000isrejectedbecauseXie

wasequallyfaultyformakingtheinvalidcontract

Case2:

ANSWER:

TheChinesecourtheldasfollows:

?Theconfirmation,althoughnotausualformofcontract,hassubjectmatter,

priceandothermaincontents.Soitshouldbedeemedascontract.

?Atthetimeofnegotiationtheconclusionofpricewasnotduetoanyformof

scamandbothpartieshadaequalfooting.WhethertheRMB200,000fora

websitewasobviousunfairdependsonthenormalpriceprevailinginthe

market.Astotheinformationofthemarketprice,accordingtoSeveral

ProvisionsontheEvidentialIssuesofChineseCivilProceduralLaw(最高人民,去

院關(guān)于民事訴訟證據(jù)的若干規(guī)定),thedefendantshouldprovideevidenceof

marketpricejustifyingitscharge.But,thedefendantunreasonablyfailedto

provide.Sothedefendantshouldtakeunfavorableconsequence.Theclaimof

obviousunfairnesswasthusestablished.

?Thecontractwastobeterminated,already

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