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Chapter 4

Contract Law

TU BBS past exam questions

Past questions and answers

8 questions set from this chapter. Most repeated first.

  • 2078 · LAW: 402 (New Course) · 5 marks

Define international institutions. Discuss the evolution of international institutions.

Answer

International institutions are formal, structured arrangements among states (and sometimes non-state actors) created by agreement to regulate their mutual relations, promote cooperation, and pursue common objectives. They possess defined membership, rules, decision-making procedures, and permanent organs. Examples include the United Nations, World Trade Organization, International Monetary Fund, and the European Union. In the legal sense, they are subjects of international law with limited legal personality derived from the consent of their member states.

Evolution of international institutions

  1. Ancient and medieval period — Early forms of institutionalized cooperation existed in the Greek city-state leagues (e.g., Amphictyonic League), the Roman Empire's legal order, and the practices of the Holy Roman Empire. These were loose, region-bound arrangements rather than true international institutions.

  2. Treaty of Westphalia (1648) — Established the sovereign equality of states and the modern state system. It introduced the idea of collective diplomatic settlement of disputes through congresses, laying the conceptual foundation for institutionalized international relations.

  3. Congress of Vienna (1815) — Created the first modern system of regular diplomatic conferences (the "Concert of Europe"). It introduced multilateral diplomacy and periodic congresses to maintain balance of power and settle disputes peacefully.

  4. Nineteenth-century functional bodies — The Rhine Commission (1815), the International Telegraph Union (1865), the Universal Postal Union (1874), and the Red Cross (1863) emerged as technical and humanitarian institutions. These were the first permanent international organizations with administrative organs.

  5. Hague Conferences (1899, 1907) — Codified laws of war and established the Permanent Court of Arbitration, the first global judicial mechanism for peaceful settlement of disputes.

  6. League of Nations (1920) — The first general-purpose political international organization, created after World War I. It aimed at collective security, disarmament, and peaceful settlement. It failed due to the absence of major powers (USA), lack of enforcement power, and the rise of aggressive nationalism.

  7. United Nations (1945) — Established after World War II as a comprehensive global institution with the Security Council, General Assembly, ICJ, and specialized agencies. It marked the maturation of international institutions with near-universal membership and binding enforcement mechanisms.

  8. Post-1945 specialized and regional institutions — Bretton Woods institutions (IMF, World Bank, 1944), GATT/WTO (1947/1995), regional bodies like the EU, ASEAN, SAARC, and African Union. These reflect functional and regional cooperation.

  9. Contemporary phase — Growth of international organizations, international tribunals (ICC, 2002), treaty regimes (climate, human rights), and informal groupings (G20). Institutions now address diverse global issues beyond war and peace.

Conclusion — International institutions evolved from loose ancient leagues to permanent, rule-based organizations with legal personality. Their growth reflects the growing interdependence of states and the need for orderly, cooperative management of international relations.

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  • 2078 · LAW: 402 (New Course) · 5 marks

What do you mean by generations of human rights? Do you agree with the notion of the generation of human rights? Discuss.

Answer

Meaning of the Generations of Human Rights

The "generations of human rights" is a classificatory idea used to group human rights according to the historical period in which they emerged and the nature of the obligation they impose. The classification was popularised by the Czech jurist Karel Vasak in 1977, who drew an analogy with the three ideals of the French Revolution — liberté, égalité, fraternité. It is a convenient analytical device rather than a legal doctrine; no human rights treaty uses the term "generation."

First generation — Civil and Political Rights (liberty): These are the oldest rights, asserted in the English Bill of Rights 1689, the American Declaration of Independence 1776, the French Declaration of the Rights of Man 1789 and now in Articles 3–21 of the ICCPR. They include the right to life, liberty and security, freedom of expression, religion and assembly, the right to a fair trial, and the prohibition of torture and slavery. They are essentially negative rights — they require the state to abstain from interference — and are generally justiciable immediately.

Second generation — Economic, Social and Cultural Rights (equality): Emerging with the industrial revolution and the socialist and labour movements of the nineteenth and twentieth centuries, these appear in Articles 22–27 of the UDHR and in the ICESCR. They include the rights to work, education, health, social security, an adequate standard of living and participation in cultural life. They are positive rights, requiring the state to provide resources, and are subject to progressive realisation under Article 2(1) of the ICESCR.

Third generation — Collective or Solidarity Rights (fraternity): These are the newest, reflecting the concerns of developing states after decolonisation. They include the right to self-determination, development, peace, a clean environment and communication. They are held by groups or peoples rather than individuals and are found mainly in soft-law instruments such as the 1986 Declaration on the Right to Development and the 1992 Rio Declaration. Their justiciability remains contested.

Some scholars add a fourth generation relating to rights in the digital age — privacy, data protection, bioethics and genetic rights.

Do I Agree with the Notion?

The notion is useful but not wholly satisfactory; I accept it with qualifications.

Arguments in favour:

  1. Historical accuracy. It correctly reflects the sequence in which rights were recognised — civil-political claims first, socio-economic claims with industrialisation, and collective claims with decolonisation.
  2. Analytical clarity. It distinguishes the differing obligations rights impose — abstention, provision and solidarity — which matters for enforcement and resource allocation.
  3. Pedagogical and political value. It helps students and activists organise a vast body of rights and has given developing countries a vocabulary for claims (development, environment) that older instruments ignored.

Arguments against:

  1. Rights are indivisible and interdependent. The Vienna Declaration 1993 affirms that all human rights form an integrated whole; the generational label wrongly suggests hierarchy or priority. In practice, the right to vote is worthless without literacy, and free speech is hollow without subsistence.
  2. The chronology is inaccurate. Second-generation rights appeared earlier than the theory admits — the ILO was founded in 1919 and the Mexican Constitution of 1917 recognised social rights before many civil rights were universal. Similarly, civil rights were denied to colonised peoples while being proclaimed in Europe.
  3. The classification is not legally operative. Courts and treaty bodies do not decide cases by "generation"; the ICCPR and ICESCR are treated as parallel and mutually reinforcing.
  4. It may dilute enforceability. Labelling socio-economic and collective rights as later or softer generations has been used to justify treating them as mere aspirations.

Conclusion

The generations of human rights are best understood as a descriptive and historical framework — a useful map of how rights came to be claimed — and not as a normative hierarchy. I therefore agree with the notion as an explanatory tool but reject any implication that first-generation rights are superior or that third-generation rights are less real. The correct approach, consistent with the Vienna Declaration, is to treat all generations as equal, indivisible and interdependent, and to work for the justiciability of each.

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  • 2078 · LAW: 402 (New Course) · 5 marks

What is a veto power? Can a veto power be overridden in the United Nations? Comment.

Answer

Veto Power

Veto power is the special negative vote that allows a permanent member of the United Nations Security Council (UNSC) to block the adoption of any substantive resolution, even if all the other members vote in favour. The word "veto" comes from Latin, meaning "I forbid."

Under Article 27(3) of the UN Charter, decisions of the Security Council on all non-procedural (substantive) matters require the affirmative vote of nine members, including the concurring votes of all five permanent members — the United States, the United Kingdom, France, Russia (formerly the USSR) and China. If any one permanent member votes against a substantive resolution, it stands defeated. This is the veto power. Abstention by a permanent member is not treated as a veto; only a negative vote is.

Can a Veto Power Be Overridden?

No, a veto cannot be overridden in the United Nations. The UN Charter provides no mechanism by which the General Assembly or any other organ can reverse or override a veto cast in the Security Council. The reasons are:

  1. Charter requirement of concurring votes — Article 27(3) makes the concurrence of all permanent members mandatory for substantive decisions. There is no provision for a super-majority to substitute for a dissenting permanent member.
  2. No appeal against a veto — A vetoed resolution simply fails; it cannot be sent to the General Assembly for binding reconsideration.
  3. General Assembly cannot override — Under the "Uniting for Peace" Resolution (1950) and Article 10, the General Assembly may discuss a matter and make recommendations when the Security Council is deadlocked by a veto, but its resolutions are recommendatory, not binding. It cannot compel action or override the veto.
  4. Amendment is itself subject to veto — Any amendment to the Charter under Article 108 requires ratification by all permanent members, so the veto cannot be abolished without their consent.

Comment

The veto was granted to the five permanent members as a price for their participation in the UN and to protect great-power interests after the failure of the League of Nations. It preserves the principle of great-power unanimity and prevents the Security Council from acting against a major power. However, it has been widely criticised as undemocratic and contrary to the sovereign equality of states, since it allows one state to frustrate the will of the international community. During the Cold War the veto was used frequently (the USSR used it over 100 times), paralysing the Council on many issues. Reform proposals — such as extending the veto to new permanent members, restricting its use in cases of genocide or crimes against humanity, or abolishing it altogether — have so far failed because Charter amendment itself requires the concurrence of the existing permanent members. Thus, the veto remains a legally unassailable privilege of the P-5.

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  • 2078 · LAW: 402 (New Course) · 5 marks

State purpose and principles of the United Nations. Highlight key functions and role of the United Nations General Assembly.

Answer

Purpose and Principles of the United Nations

Purpose (Article 1 of the UN Charter)

  1. Maintain international peace and security — to take effective collective measures for the prevention and removal of threats to peace, and to settle international disputes by peaceful means.
  2. Develop friendly relations among nations — based on respect for the principle of equal rights and self-determination of peoples.
  3. Achieve international cooperation — in solving international problems of an economic, social, cultural, or humanitarian character, and in promoting and encouraging respect for human rights and fundamental freedoms.
  4. Be a centre for harmonizing the actions of nations — in the attainment of these common ends.

Principles (Article 2 of the UN Charter)

  1. Sovereign equality of all member states.
  2. Good faith fulfilment of obligations assumed under the Charter.
  3. Peaceful settlement of disputes — members shall settle disputes by peaceful means in such a manner that international peace, security, and justice are not endangered.
  4. Refrain from threat or use of force against the territorial integrity or political independence of any state.
  5. Assistance to the UN — members shall give the UN every assistance in any action it takes in accordance with the Charter.
  6. Non-interference — the UN shall not intervene in matters essentially within the domestic jurisdiction of any state (with the exception of enforcement measures under Chapter VII).
  7. Compliance by non-members — the UN shall ensure that non-member states act in accordance with these principles so far as may be necessary for the maintenance of international peace and security.

Key Functions and Role of the UN General Assembly

Composition and Nature

The General Assembly (GA) is the chief deliberative, policymaking, and representative organ of the UN. It consists of all member states, each having one vote (Article 9). It meets in regular annual sessions and in special or emergency special sessions when required.

Key Functions

  1. Deliberative function — may discuss any question or matter within the scope of the Charter and make recommendations to members or to the Security Council (Article 10).
  2. Peace and security — considers principles of cooperation for maintaining peace and security, and may discuss any dispute likely to impair international peace (Articles 11–12).
  3. Admission and expulsion of members — admits new members on the recommendation of the Security Council and may suspend or expel members (Articles 4–6).
  4. Budgetary function — approves the UN budget and apportions expenses among members (Article 17).
  5. Electoral function — elects non-permanent members of the Security Council, members of ECOSOC, and judges of the ICJ (in conjunction with the Security Council).
  6. Codification and development of international law — promotes international cooperation and the progressive development of international law through bodies such as the International Law Commission.
  7. Human rights and humanitarian matters — discusses and makes recommendations on human rights, economic, social, cultural, and humanitarian issues.
  8. Trusteeship — supervises the International Trusteeship System (now largely completed).

Role and Significance

  • Acts as the "town meeting of the world", giving every state, large or small, an equal voice.
  • Provides a forum for peaceful settlement of disputes through debate and recommendation.
  • Plays a major role in standard-setting — adopting key instruments such as the UDHR (1948) and various human rights covenants.
  • Exercises influence through resolutions, though these are generally non-binding except on budgetary and procedural matters.
  • Serves as a platform for collective legitimization of international action and for mobilizing world opinion.

Limitations

  • Recommendations are not legally binding on members.
  • The "Uniting for Peace" Resolution (1950) allows the GA to act when the Security Council is deadlocked, but its decisions still lack enforcement power.
  • Voting is dominated by numerical majority, sometimes not reflecting political or economic realities.

Conclusion: The GA remains the most representative and democratic organ of the UN, serving as the principal forum for deliberation, standard-setting, and harmonizing the actions of nations in pursuit of the Charter's purposes and principles.

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  • 2078 · LAW: 402 (New Course) · 5 marks

What do you mean by the Human Rights council? What are key subsidiary bodies of the Human Rights Council? Discuss.

Answer

Human Rights Council (HRC)

The Human Rights Council is an inter-governmental body within the United Nations system, established by UN General Assembly Resolution 60/251 on 15 March 2006, replacing the former UN Commission on Human Rights. It is responsible for strengthening the promotion and protection of human rights around the globe and for addressing situations of human rights violations and making recommendations on them.

Composition and status: It has 47 member states, elected by the General Assembly by secret ballot for three-year terms, with no member eligible for immediate re-election after two consecutive terms. Seats are distributed geographically (Africa 13, Asia-Pacific 13, Latin America and Caribbean 8, Western Europe and Others 7, Eastern Europe 6). It meets for at least three regular sessions per year (March, June, September) and can hold special sessions at the request of one-third of its members. It is a subsidiary body of the General Assembly, not of ECOSOC — unlike its predecessor, the Commission.

Key subsidiary bodies of the Human Rights Council

  1. Universal Periodic Review (UPR) Working Group — The Council's flagship mechanism. It reviews the human rights records of all 193 UN member states once every four to five years, on the basis of the State's report, a compilation of UN information and a summary of stakeholder submissions. Nepal has undergone UPR reviews (most recently the fourth cycle).

  2. Advisory Committee — Replaced the former Sub-Commission on Promotion and Protection of Human Rights. It serves as the Council's "think tank," consisting of 18 independent experts nominated by states and appointed by the Council, providing expert advice and studies on thematic human rights issues at the Council's request.

  3. Complaint Procedure Working Group — Two distinct working groups (one on Communications, one on Situations) that examine communications alleging a consistent pattern of gross and reliably attested violations of human rights in any state, and bring them to the Council's attention. It is confidential and does not address individual cases.

  4. Special Procedures — The system of Special Rapporteurs, Independent Experts, and Working Groups (thematic or country-specific) mandated by the Council to examine, monitor, advise and publicly report on human rights situations. Examples include the Special Rapporteur on torture, on freedom of expression, and on the situation in specific countries. They are unpaid, independent experts.

  5. Expert Mechanism on the Rights of Indigenous Peoples (EMRIP) — A subsidiary body of seven independent experts providing thematic expertise and advice on the rights of indigenous peoples.

  6. Social Forum, Forum on Minority Issues, and Forum on Business and Human Rights — Dialogue platforms that bring together states, civil society and other stakeholders on specific themes, reporting back to the Council.

  7. Inter-sessional and ad hoc bodies — Including open-ended working groups (e.g., on the right to development, on a draft legally binding instrument on transnational corporations) and commissions of inquiry or fact-finding missions established by resolution for particular situations.

Conclusion

The Human Rights Council, through these subsidiary bodies, institutionalises a dual approach — cooperative and universal (UPR, Advisory Committee) on the one hand, and accountability-oriented (Special Procedures, Complaint Procedure, commissions of inquiry) on the other. Together they form the core machinery through which the UN monitors, advises on and responds to human rights situations worldwide.

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  • 2078 · LAW: 402 (New Course) · 5 marks

Examine the major provisions of the International Covenant on Civil and Political Rights, 1966.

Answer

The International Covenant on Civil and Political Rights (ICCPR), 1966 is one of the two core human rights treaties that gave legal force to the Universal Declaration of Human Rights, 1948. Adopted by the UN General Assembly on 16 December 1966 and in force since 23 March 1976, it binds state parties to respect and ensure a range of civil and political rights. Its major provisions are as follows:

1. Right to self-determination (Article 1) All peoples have the right to freely determine their political status and pursue their economic, social and cultural development, and to freely dispose of their natural wealth and resources.

2. Non-discrimination and equality (Articles 2–3, 26) Each state party undertakes to respect and ensure the rights of all individuals within its territory without distinction of race, colour, sex, language, religion, political opinion, national or social origin, property, birth or other status. Article 3 guarantees equal enjoyment of rights by men and women, and Article 26 provides equality before the law and equal protection of the law.

3. Right to life (Article 6) The right to life is inherent in every human being and shall be protected by law. No one shall be arbitrarily deprived of life, and the death penalty is restricted to the most serious crimes.

4. Prohibition of torture and inhuman treatment (Article 7) No one shall be subjected to torture, or to cruel, inhuman or degrading treatment or punishment. In particular, no one shall be subjected to medical or scientific experimentation without free consent.

5. Prohibition of slavery and forced labour (Article 8) Slavery, the slave trade, servitude and forced or compulsory labour are prohibited.

6. Liberty and security of the person (Articles 9–11) Everyone has the right to liberty and security; no one shall be subjected to arbitrary arrest or detention. Arrested persons must be informed of the charges, brought promptly before a judge, and entitled to compensation for unlawful detention. Imprisonment merely for inability to fulfil a contractual obligation is prohibited.

7. Fair trial and due process (Articles 14–15) Everyone is entitled to a fair and public hearing by a competent, independent and impartial tribunal; the accused enjoys the presumption of innocence and minimum guarantees such as legal assistance and examination of witnesses. Retroactive criminal liability is prohibited.

8. Freedom of movement and expulsion safeguards (Articles 12–13) Everyone lawfully within a state has the right to liberty of movement and freedom to choose residence, to leave any country and to enter their own. Aliens may be expelled only in accordance with law and with review safeguards.

9. Privacy, family and home (Article 17) No one shall be subjected to arbitrary or unlawful interference with privacy, family, home or correspondence.

10. Freedom of thought, conscience and religion (Article 18) This freedom includes the right to adopt a religion or belief of one's choice and to manifest it in worship, observance, practice and teaching, subject only to lawful limitations necessary to protect public safety, order, health, morals or the rights of others.

11. Freedom of expression and opinion (Article 19) Everyone has the right to hold opinions without interference and to seek, receive and impart information and ideas through any media, subject to restrictions for the rights or reputations of others and for national security or public order.

12. Prohibition of propaganda and hate speech (Article 20) War propaganda and advocacy of national, racial or religious hatred that incites discrimination, hostility or violence are prohibited by law.

13. Freedom of assembly and association (Articles 21–22) The right of peaceful assembly and the right to form and join trade unions are recognised, subject to lawful restrictions in the interests of national security, public safety, public order, health, morals or the rights of others.

14. Right to participate in public affairs (Article 25) Every citizen has the right to take part in the conduct of public affairs, to vote and be elected in genuine periodic elections by universal and equal suffrage, and to have access to public service.

15. Rights of minorities (Article 27) In states where ethnic, religious or linguistic minorities exist, persons belonging to them shall not be denied the right to enjoy their own culture, profess and practise their religion, or use their own language.

16. Implementation and enforcement (Articles 28–45) The Covenant establishes the Human Rights Committee of 18 independent experts, which examines state reports (Article 40), issues general comments, and may consider inter-state and individual communications under the First Optional Protocol. Derogation from obligations is permitted only in times of public emergency (Article 4), and certain rights are non-derogable.

Conclusion The ICCPR thus provides a comprehensive, legally binding framework of civil and political rights, backed by a monitoring mechanism, and forms the core of international human rights law along with its sister covenant, the ICESCR.

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  • 2078 · LAW: 402 (New Course) · 5 marks

Elaborate the jurisdiction of the international court of justice with suitable examples.

Answer

Jurisdiction of the International Court of Justice

The International Court of Justice (ICJ), seated at the Peace Palace in The Hague, is the principal judicial organ of the United Nations. Its jurisdiction is of two kinds — contentious and advisory — and is governed by Article 36 of the ICJ Statute.

1. Contentious jurisdiction (Article 36(1)) The Court decides disputes of a legal nature between States. Article 36(2) lists four classes of disputes over which it has jurisdiction:

  • interpretation of a treaty;
  • any question of international law;
  • the existence of any fact which, if established, would constitute a breach of an international obligation;
  • the nature or extent of reparation to be made for such a breach.

Only States may be parties in contentious cases; individuals and corporations cannot sue before the ICJ. Jurisdiction arises in three ways:

  • By special agreement (compromis): the parties refer a dispute to the Court by treaty. Example: the North Sea Continental Shelf cases (1969) between Denmark, the Netherlands and West Germany.
  • By treaty clause (compromissory clause): a treaty provides that disputes under it go to the ICJ. Example: the LaGrand case (2001) under the Vienna Convention on Consular Relations.
  • By optional clause declaration (Article 36(2)): States accept the Court's compulsory jurisdiction in advance. Example: Nicaragua v. United States (1986), where the US had made such a declaration.

2. Advisory jurisdiction (Article 65)

The Court gives advisory opinions on legal questions referred by the UN General Assembly, the Security Council, or other authorized UN organs and agencies. These opinions are not binding but carry great legal weight. Example: the Advisory Opinion on the Chagos Archipelago (2019) and the Kosovo opinion (2010).

3. Limits on jurisdiction

  • The Court's decision binds only the parties and only in that case (Article 59).
  • It has no enforcement machinery of its own; enforcement lies with the Security Council under Article 94 of the UN Charter.
  • A State may make reservations excluding certain disputes (e.g., matters of national security) from its optional clause declaration.

Conclusion

Thus, the ICJ's jurisdiction covers both the settlement of legal disputes between consenting States and the giving of advisory opinions to UN organs. Its authority rests on State consent, which is both its strength and its chief limitation.

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  • 2078 · LAW: 402 (New Course) · 5 marks

Write short notes on any THREE of the followings:
a) SAARC b) African system of human rights c) Convention on the rights of child d) Hague system e) IMF

Answer

Short Notes (any three)

a) SAARC

The South Asian Association for Regional Cooperation (SAARC) is a regional inter-governmental organisation established on 8 December 1985 in Dhaka, Bangladesh, with its permanent secretariat at Kathmandu, Nepal (set up in 1987). Its founding members are Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka; Afghanistan joined in 2007 as the eighth member. SAARC was created to promote regional cooperation, economic and social development, collective self-reliance, mutual trust and understanding among South Asian states. Its principal organs are the Summit (highest body), the Council of Ministers, the Standing Committee, the Technical Committees and the Secretariat. It has adopted several instruments, including the SAARC Charter, the SAARC Preferential Trading Arrangement (SAPTA, 1993) and the South Asian Free Trade Area (SAFTA, 2004). However, SAARC has been largely ineffective because of India–Pakistan political tensions, the bilateral nature of disputes, the unanimity rule and lack of enforcement power. Since 2014 no Summit has been held, and its relevance has been partly overtaken by BIMSTEC. Still, SAARC remains an important platform for South Asian identity and cooperation.

b) African System of Human Rights

The African system of human rights operates under the African Union (formerly OAU) and rests on the African Charter on Human and Peoples' Rights, 1981 (Banjul Charter), which came into force in 1986. The Charter is unique because it covers civil, political, economic, social and cultural rights in a single instrument and also recognises peoples' rights (self-determination, development, peace and a healthy environment) and duties of the individual toward family, society and the state. The main monitoring organ is the African Commission on Human and Peoples' Rights (Banjul, The Gambia), which promotes and protects rights through reporting, communications and country visits. In 1998 the Protocol on the Establishment of an African Court on Human and Peoples' Rights was adopted (in force 2004), and the Protocol on the Rights of Women in Africa (Maputo Protocol) was adopted in 2003 and came into force on 25 November 2005. The system's strengths are its broad scope, cultural sensitivity and inclusion of duties; its weaknesses are weak enforcement, non-binding recommendations, poor funding and political interference. It is thus a developing but significant regional human rights mechanism.

c) Convention on the Rights of the Child (CRC)

The Convention on the Rights of the Child (CRC), 1989, adopted by the UN General Assembly on 20 November 1989 and in force since 2 September 1990, is the most widely ratified human rights treaty in history. A child is defined as every human being below 18 years, unless majority is attained earlier under national law. The CRC is built on four core principles: non-discrimination (Art. 2), best interests of the child (Art. 3), right to life, survival and development (Art. 6) and respect for the views of the child (Art. 12). It guarantees civil, political, economic, social and cultural rights, including identity, family care, health, education, play, protection from abuse, exploitation and armed conflict, and prohibits the death penalty and life imprisonment without parole for children. It has two Optional Protocols: on children in armed conflict and on the sale of children, child prostitution and child pornography (both 2000), and a third on a communications procedure (2011). The UN Committee on the Rights of the Child monitors implementation through state reports. Nepal is a party to the CRC and has enacted the Child Rights Act, 2075 to give it effect.

d) Hague System

The Hague System refers to the Hague System for the International Registration of Industrial Designs, administered by WIPO under the Hague Agreement Concerning the International Deposit of Industrial Designs, 1925. It provides a single international application, in one language, with one set of fees, filed with the International Bureau of WIPO (directly or through a national office), by which an applicant can obtain design protection in multiple member countries simultaneously. The applicant designates the Contracting Parties in which protection is sought; each designated office may refuse protection within a prescribed time limit, failing which the design is protected as if registered nationally. Registration is valid for five years from the filing date and may be renewed for further periods (up to at least 15 years in most members). The system is cost-effective, simplifies multi-country filing and centralises renewal and recordal of changes in one place. It is thus a key international mechanism for protecting the outward appearance of a product (shape, pattern, ornamentation) across borders.

e) IMF

The International Monetary Fund (IMF) is an international financial institution established by the Bretton Woods Agreement of 1944 and came into existence in December 1945 and began financial operations in 1947 with headquarters at Washington, D.C. It was created to promote international monetary cooperation, exchange rate stability, balanced growth of trade and to provide short-term financial assistance to member countries facing balance-of-payments difficulties. Membership is open to all countries; each member contributes a quota that determines its voting power, drawing rights and share in Special Drawing Rights (SDRs). The main organs are the Board of Governors, the Executive Board, the Managing Director and the International Monetary and Financial Committee. Its key functions include surveillance of members' economic policies, lending under various facilities (Standby Arrangements, Extended Fund Facility, Rapid Financing Instrument), technical assistance and capacity building. The IMF's currency unit is the SDR, valued against a basket of major currencies. Criticisms include conditionality, dominance of developed countries and erosion of policy sovereignty of borrowing states. Nepal became a member of the IMF in 1961.

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