Legal Principles And International Law (C1)

Question 1

Q: What is ‘choice of laws’ in international contracts?

Answer 1

A: Parties can pre-select which country’s laws will govern their agreement.

Question 2

Q: What frameworks can parties in international contracts opt to use?

Answer 2

A: Rules from the UN and the International Chamber of Commerce (ICC).

Question 3

Q: What does the UNCISG apply to?

Answer 3

A: Commercial sales between parties in different countries.

Question 4

Q: What does the UNCISG stand for?

Answer 4

A: UN Convention on Contracts for the International Sale of Goods (UNCISG)

Question 5

Q: What types of sales are excluded from the UNCISG?

Answer 5

A: Sales involving labor, personal use goods, auctions, and certain restricted products such as aircraft, electricity and investments.

Question 6

Q: What is a buyer’s obligation under the UNCISG?

Answer 6

A: To pay for the goods and comply with payment formalities.

Question 7

Q: What are the seller’s obligations under the UNCISG?

Answer 7

A: Deliver goods at the agreed time and place, meet contract specifications, and provide proper packaging.

Question 8

Q: When does the risk pass from seller to buyer according to the UNCISG?

Answer 8

A: In accordance with contract terms or upon transfer to the first carrier.

Question 9

Q: What do ICC Incoterms provide?

Answer 9

A: Standardized rules for international trade contracts covering delivery, duties, insurance, and freight.

Question 10

Q: What is the range of obligations for sellers in ICC Incoterms?

Answer 10

A: From minimal obligations (e.g., ‘ex-works’) to maximum obligations (e.g., ‘delivered duty paid’).

Question 11

Q: What does the ‘ICC’ stand for?

Answer 11

A: International Chamber of Commerce.

Question 12

Q: What type of law is criminal law?

Answer 12

A: Public law addressing conduct disapproved by the State.

Question 13

Q: What is the primary purpose of criminal law?

Answer 13

A: To enforce specific behaviors and ensure compliance.

Question 14

Q: How is a criminal case initiated?

Answer 14

A: By the State in the name of the Crown (e.g., R v …).

Question 15

Q: How is a criminal case initiated?

Answer 15

A: By the State in the name of the Crown (e.g., R v …).

Question 16

Q: What is the burden of proof in criminal law?

Answer 16

A: On the prosecution.

Question 17

Q: What is the standard of proof in criminal cases?

Answer 17

A: Guilt must be established beyond reasonable doubt.

Question 18

Q: What type of law is civil law?

Answer 18

A: Private law governing relationships between individuals.

Question 19

Q: What is the main purpose of civil law?

Answer 19

A: To settle disputes and provide remedies.

Question 20

Q: How is a civil case initiated?

Answer 20

A: By the claimant seeking a remedy (e.g., Brown v Smith).

Question 21

Q: What are the two main sources of law in England and Wales?

Answer 21

A: Statute law and case law (common law).

Question 22

Q: Which type of law takes precedence over the other?

Answer 22

A: Statute law takes precedence over case law.

Question 23

Q: What is direct legislation?

Answer 23

A: Laws enacted directly by Parliament, which is the supreme legal authority.

Question 24

Q: What are the two houses of Parliament?

Answer 24

A: House of Commons (elected) and House of Lords (appointed or inherited).

Question 25

Q: What is required for a Bill to become an Act of Parliament?

Answer 25

A: It must be passed by both houses and receive Royal Assent.

Question 26

Q: What is delegated legislation?

Answer 26

A: Legislative powers delegated by Parliament to other bodies through an ‘enabling’ Act.

Question 27

Q: Name an example of delegated legislation.

Answer 27

A: Statutory instruments, bye-laws, or Orders in Council.

Question 28

Q: What is the Doctrine of Judicial Precedent?

Answer 28

A: A system where judges follow decisions from previous similar cases.

Question 29

Q: What is a binding precedent?

Answer 29

A: A precedent that must be followed in later cases (from higher courts).

Question 30

Q: What is a persuasive precedent?

Answer 30

A: A precedent that a judge may choose to follow but is not required to do so.

Question 31

Q: What governs Islamic finance?

Answer 31

A: Sharia law.

Question 32

Q: In which countries is Sharia law part of the legal system?

Answer 32

A: Pakistan and Iran.

Question 33

Q: What is the key rule in Sharia law regarding finance?

Answer 33

A: The prohibition of usury (charging or receiving interest).

Question 34

Q: How is money viewed in Islamic finance?

Answer 34

A: As a medium for exchange, not a commodity for profit.

Question 35

Q: How is money viewed in Islamic finance?

Answer 35

A: As a medium for exchange, not a commodity for profit.

Question 36

Q: Can profits be generated under Sharia law?

Answer 36

A: Yes, profit generation and sharing are allowed; contracts must focus on profit-sharing.

Question 37

Q: How is an Islamic savings account structured?

Answer 37

A: Customers invest, and the bank acts as a fund manager, returning capital plus profits (minus fees).

Question 38

Q: How are loans structured in Islamic finance?

Answer 38

A: The bank purchases the asset for the customer and sells it at a profit; the customer pays in installments.

Question 39

Q: Who retains ownership of the asset until final payment in Islamic finance?

Answer 39

A: The bank retains ownership until the customer completes all payments.