Part Two: True or False.

1. Generally an advertisement is not an offer, just an invitation to treat. ( )
2. Consideration must have a value recognized by law but neednt be equal to the other partys promise. ( )
3. The doctrine of promissory estoppel prevents one party from withdrawing a promise made to a second party if the latter has reasonably relied on that promise and acted upon it to his detriment. ( )
4. A common mistake is where both parties hold the same mistaken belief of the facts, whereas the mutual mistake occurs when the parties to a contract are both mistaken about the same material fact within their contract and virtually are at cross-purposes. ( )
5. In interpreting a Sales Contract, the three factors to be looked at by the courts around the world rank in order of precedence from the parties statement and conduct, the usages and practices of the parties to the practices of the trade to which the contract relates. ( )
6. The Hague Rules represented the first attempt by the international community to find a workable and uniform way to address the problem of ship-owners regularly excluding themselves from all liability for loss or damage to cargo. ( )
7. To extend the liability limits of the conventions to their employees, agents, and even independent contractors (such as stevedores), carriers have added a clause to their B/L, known as a Himalaya Clause, which entitles them to claim the protection of the Hague or the Hague-Visby Rules. ( )
8. A vessel is regarded as a juridical person separate and apart from its owner under common law but it is not the case under civil law. ( )
9. General average loss is caused voluntarily to avoid an impending danger. It is caused by an extra-ordinary sacrifice or expenditure voluntarily and reasonably made or incurred under fortuitous circumstances, for the sole purpose of preserving the common interest from an impending peril. ( )
10. Bill of exchange is a written, dated and signed two-party instrument containing an unconditional promise by a maker to pay a definite sum of money to a payee on demand or at a specified future date. ( )
11. Compared with FPA (a free from particular average policy), WA (a with average policy) provides more protection.
12. The most influential governing law of letters of credit is Uniform Customs and Practices for Documentary Credits of the International Chamber of Commerce. ( )
13. In Europe, liability can arise only on the financial instruments. In sum, there is no warranty liability. ( )
14. There is only one type of contract of carriage, i.e. the charter party. ( )
15. In terms of the Incoterms rules, under C terms, the seller arranges and pays for the main carriage but without the risk of main carriage. ( )