United Nations Convention on Contracts for the International Sale of Goods

Last updated
CISG
United Nations Convention on Contracts for the International Sale of Goods
CISGworldmap-updatedforbrazil.png
  ratified
  signed, but not ratified
Typemultilateral uniform international sales treaty
Signed11 April 1980
Location Vienna, Austria
Effective1 January 1988
Condition10 ratifications
Signatories18
Parties97
DepositaryThe Secretary-General of the United Nations
LanguagesArabic, Chinese, English, French, Russian, and Spanish

The United Nations Convention on Contracts for the International Sale of Goods (CISG), sometimes known as the Vienna Convention, is a multilateral treaty that establishes a uniform framework for international commerce. [1] [Note 1] As of December 2023, it has been ratified by 97 countries, representing two-thirds of world trade. [2]

Contents

The CISG facilitates international trade by removing legal barriers among state parties (known as "Contracting States") and providing uniform rules that govern most aspects of a commercial transaction, such as contract formation, the means of delivery, parties' obligations, and remedies for breach of contract. [3] Unless expressly excluded by the contract, [4] the convention is automatically incorporated into the domestic laws of Contracting States and applies directly to a transaction of goods between their nationals. [5]

The CISG is rooted in two earlier international sales treaties first developed in 1930 by the International Institute for the Unification of Private Law (UNIDROIT). [6] When neither convention garnered widespread global support, the United Nations Commission on International Trade Law (UNCITRAL) drew from the existing texts to develop the CISG in 1968. [6] A draft document was submitted to the Conference on the International Sale of Goods held in Vienna, Austria in 1980. [7] Following weeks of negotiation and modification, the CISG was unanimously approved and opened for ratification; it came into force on 1 January 1988 following ratification by 11 countries. [8]

The CISG is considered one of the greatest achievements of UNCITRAL and the "most successful international document" in unified international sales law, [9] [10] due to its parties representing "every geographical region, every stage of economic development and every major legal, social and economic system". [11] Of the uniform law conventions, the CISG has been described as having "the greatest influence on the law of worldwide trans-border commerce", including among nonmembers. [12] It is also the basis of the annual Willem C. Vis International Commercial Arbitration Moot, one of the largest and most prominent international moot court competitions in the world.

Adoption

As of 20 December 2023, the following 97 states have ratified, acceded to, approved, accepted, or succeeded to the convention: [13]

The convention has been signed, but not ratified, by Flag of Ghana.svg Ghana and Flag of Venezuela.svg Venezuela.

Language, structure, and content

The CISG is written using "plain language that refers to things and events for which there are words of common content". [14] This was intended to allow national legal systems to be transcended through the use of a lingua franca that would be mutually intelligible among different cultural, legal, and linguistic groups. [15] and to avoid "words associated with specific domestic legal nuances". [11] As is customary in UN conventions, all six official languages of the UN are equally authentic. [16] [17]

The CISG is divided into four parts:

Part I: Sphere of Application and General Provisions (Articles 1–13)

The CISG applies to contracts of the sale of goods between parties whose places of business are in different States, when the States are Contracting States (Article 1(1)(a)). Given the significant number of Contracting States, this is the usual path to the CISG's applicability.

The CISG also applies if the parties are situated in different countries (which need not be Contracting States) and the conflict of law rules lead to the application of the law of a Contracting State. [18] For example, a contract between a Japanese trader and a Brazilian trader may contain a clause that arbitration will be in Sydney under Australian law [19] with the consequence that the CISG would apply. A number of States have declared they will not be bound by this condition. [20]

The CISG is intended to apply to commercial goods and products only. With some limited exceptions, it does not apply to personal, family, or household goods, nor does it apply to auctions, ships, aircraft, [21] or intangibles [22] and services. [23] The position of computer software is 'controversial' and will depend upon various conditions and situations. [24] [25]

Importantly, parties to a contract may exclude or vary the application of the CISG. [26]

Interpretation of the CISG must consider the "international character" of the convention, the need for uniform application, and the need for good faith in international trade. [27]

A key point of controversy is whether or not a contract requires a written memorial to be binding. The CISG allows for a sale to be oral or unsigned, [28] but in some countries, contracts are not valid unless written. In many nations, however, oral contracts are accepted, and those States had no objection to signing, so States with a strict written requirement exercised their ability to exclude those articles relating to oral contracts, enabling them to sign as well. [29]

The CISG, by its own definition, does not govern all aspects of sales contracts subject to its application. [30] The matters listed in its Article 4 must be filled in by the applicable national law under due consideration of the conflict of law rules applicable at the place of jurisdiction. [31] Gaps referring to matters that are governed by the CISG but not expressly settled therein (a gap praeter legem ), however, are to be preferably filled in accordance with "the principles on which [the CISG] is based," and only in the absence of those should national law be applied. [32]

Part II: Formation of the Contract (Articles 14–24)

An offer to contract must be addressed to a person, be sufficiently definite – that is, describe the goods, quantity, and price – and indicate an intention for the offeror to be bound on acceptance. [33] The CISG does not appear to recognise common law unilateral contracts [34] but, subject to clear indication by the offeror, treats any proposal not addressed to a specific person as only an invitation to make an offer. [35] Further, where there is no explicit price or procedure to implicitly determine price, then the parties are assumed to have agreed upon a price based upon that 'generally charged at the time of the conclusion of the contract for such goods sold under comparable circumstances'. [36]

Generally, an offer may be revoked provided the withdrawal reaches the offeree before or at the same time as the offer, or before the offeree has sent an acceptance. [37] Some offers may not be revoked; for example when the offeree reasonably relied upon the offer as being irrevocable. [38] The CISG requires a positive act to indicate acceptance; silence or inactivity are not an acceptance. [39]

The CISG attempts to resolve the common situation where an offeree's reply to an offer accepts the original offer, but attempts to change the conditions. The CISG says that any change to the original conditions is a rejection of the offer—it is a counter-offer—unless the modified terms do not materially alter the terms of the offer. Changes to price, payment, quality, quantity, delivery, liability of the parties, and arbitration conditions may all materially alter the terms of the offer. [40]

Part III: Sale of Goods (Articles 25–88)

Articles 25–88; sale of goods, obligations of the seller, obligations of the buyer, passing of risk, obligations common to both buyer and seller.

The CISG defines the duty of the seller, 'stating the obvious', [41] as the seller must deliver the goods, hand over any documents relating to them, and transfer the property in the goods, as required by the contract. [42] Similarly, the duty of the buyer is to take all steps 'which could reasonably be expected' [43] to take delivery of the goods, and to pay for them. [44]

Generally, the goods must be of the quality, quantity, and description required by the contract, be suitably packaged and fit for purpose. [45] The seller is obliged to deliver goods that are not subject to claims from a third party for infringement of industrial or intellectual property rights in the State where the goods are to be sold. [46] The buyer is obliged to promptly examine the goods and, subject to some qualifications, must advise the seller of any lack of conformity within 'a reasonable time' and no later than within two years of receipt. [47]

The CISG describes when the risk passes from the seller to the buyer [48] but it has been observed that in practice most contracts define the seller's delivery obligations quite precisely by adopting an established shipment term, [41] such as FOB and CIF. [49]

Remedies of the buyer and seller depend upon the character of a breach of the contract. If the breach is fundamental, then the other party is substantially deprived of what it expected to receive under the contract. Provided that an objective test shows that the breach could not have been foreseen, [50] then the contract may be avoided [51] and the aggrieved party may claim damages. [52] Where part performance of a contract has occurred, then the performing party may recover any payment made or good supplied; [53] this contrasts with the common law where there is generally no right to recover a good supplied unless title has been retained or damages are inadequate, only a right to claim the value of the good. [54]

If the breach is not fundamental, then the contract is not avoided and remedies may be sought including claiming damages, specific performance, and adjustment of price. [55] Damages that may be awarded conform to the common law rules in Hadley v Baxendale [56] but it has been argued the test of foreseeability is substantially broader [41] and consequently more generous to the aggrieved party.

The CISG excuses a party from liability to a claim of damages where a failure to perform is attributable to an impediment beyond the party's, or a third party sub-contractor's, control that could not have been reasonably expected. [57] Such an extraneous event might elsewhere be referred to as force majeure , and frustration of the contract.

Where a seller has to refund the price paid, then the seller must also pay interest to the buyer from the date of payment. [58] It has been said the interest rate is based on rates current in the seller's State '[s]ince the obligation to pay interest partakes of the seller's obligation to make restitution and not of the buyer's right to claim damages', [59] though this has been debated. [60] In a mirror of the seller's obligations, where a buyer has to return goods the buyer is accountable for any benefits received. [61]

Part IV: Final Provisions (Articles 89–101)

Articles 89–101 (final provisions) include how and when the Convention comes into force, permitted reservations and declarations, and the application of the convention to international sales where both States concerned have the same or similar law on the subject.

The Part IV Articles, along with the Preamble, are sometime characterized as being addressed "primarily to States", [62] not to businesspeople attempting to use the convention for international trade. They may, however, have a significant impact upon the CISG's practical applicability, [63] thus requiring careful scrutiny when determining each particular case.

Commentary on the Convention

It has been remarked that the CISG expresses a practice-based, flexible and "relational" character. It places no or very few restrictions of form on formation or adjustment of contracts; in case of non-performance (or over-performance) it offers a wide array of interim measures before the aggrieved party must resort to avoiding the contract (e.g. unilateral pro-rated price reduction (Art. 50); suspension of performance (art. 71); the availability of cure as a matter of right of the defaulting party (subject to some reservations, Art. 48); choice between expectation and market-based damages, etc.); additionally, the CISG does not operate under a "perfect tender" rule and its criteria for conformity are functional rather than formal (art. 35). [64] Additionally, its rules of interpretation rely heavily on custom as well as on manifest acts rather than on intent (Art. 8). The CISG does include a so-called Nachlass rule (i.e., legacy rule), but its scope is relatively limited. On the other hand, its good faith obligation may seem relatively limited and in any case obscure (Art. 7). All communications require "reasonable time."

Although the convention has been accepted by a large number of States, it has been the subject of some criticism. For example, the drafting nations have been accused of being incapable of agreement on a code that "concisely and clearly states universal principles of sales law", and through the convention's invitation to interpret taking regard of the convention's "international character" [65] gives judges the opportunity to develop "diverse meaning". [66] Put more bluntly, the CISG has been described as "a variety of vague standards and compromises that appear inconsistent with commercial interests". [67]

A contrary view is that the CISG is "written in plain business language," which allows judges the opportunity to make the Convention workable in a range of sales situations. [68] It has been said "the drafting style is lucid and the wording simple and uncluttered by complicated subordinating clauses", and the "general sense" can be grasped on the first reading without the need to be a sales expert. [69]

Uniform application of the CISG is problematic because of the reluctance of courts to use "solutions adopted on the same point by courts in other countries", [70] resulting in inconsistent decisions. [71] For example, in a case involving the export to Germany by a Swiss company of New Zealand mussels with a level of cadmium in excess of German standards, the German Supreme Court held that it is not the duty of the seller to ensure that goods meet German public health regulations. [72] This contrasted with a later decision in which an Italian cheese exporter failed to meet French packaging regulations, and the French court decided it was the duty of the seller to ensure compliance with French regulations. [73]

These two cases were held by one commentator to be an example of contradictory jurisprudence. [68] Another commentator, however, saw the cases as not contradictory, as the German case could be distinguished on a number of points. [74] The French court chose not to consider the German court's decision, in its published decision. (Precedent, foreign or not, is not legally binding in civil law.)

CISG advocates are also concerned that the natural inclination of judges is to interpret the CISG using the methods familiar to them from their own State [75] rather than attempting to apply the general principles of the convention or the rules of private international law. [71] This is despite the comment from one highly respected academic that 'it should be a rare, or non-existent, case where there are no relevant general principles to which a court might have recourse' under the CISG. [76] This concern was supported by research of the CISG Advisory Council which said, in the context of the interpretation of Articles 38 and 39, [77] there is a tendency for courts to interpret the articles in the light of their own State's law, and some States have 'struggled to apply [the articles] appropriately'. [78] In one of a number of criticisms [79] of Canadian court decisions to use local legislation to interpret the CISG, one commentator said the CISG was designed to 'replace existing domestic laws and caselaw,' and attempts to resolve gaps should not be by 'reference to relevant provisions of [local] sales law'. [80]

Critics of the multiple language versions of the CISG assert it is inevitable the versions will not be totally consistent because of translation errors and the untranslatability of 'subtle nuances' of language. [81] This argument, though with some validity, would not seem peculiar to the CISG but common to any and all treaties that exist in multiple languages. The reductio ad absurdum would seem to be that all international treaties should exist in only a single language, something which is clearly neither practical nor desirable.

Other criticisms of the convention are that it is incomplete, there is no mechanism for updating the provisions, and no international panel to resolve interpretation issues. For example, the CISG does not govern the validity of the contract, nor does it consider electronic contracts. [82] However, legal matters relating to the use of electronic communications in relation to contracts for international sale of goods have been eventually dealt with in a comprehensive manner in the United Nations Convention on the Use of Electronic Communications in International Contracts. Moreover, it is not to be forgotten that the CISG is complemented by the Convention on the Limitation Period in the International Sale of Goods with respect to the limitation of actions due to passage of time. [83]

Despite the critics, a supporter has said '[t]he fact that the costly ignorance of the early days, when many lawyers ignored the CISG entirely, has been replaced by too much enthusiasm that leads to ... oversimplification, cannot be blamed on the CISG'. [84]

Reservations

The relatively widespread adoption of the CISG stems from its allowing Contracting States to take exception to certain specified articles; this flexibility was instrumental in convincing states with disparate legal traditions to subscribe to an otherwise uniform code. [85] Contracting States can lodge reservations, referred to therein as "declarations", which exempt them from certain provisions. Nevertheless, the vast majority of parties—69 of the current 92 Contracting States—have acceded to the Convention without any declaration.

Of the approximate quarter of parties that have taken reservations, most have done so with respect to one or some of the following:

Some existing declarations have been reviewed and withdrawn by States. The Nordic countries (except Iceland) had originally opted out of the application of Part II under Article 92, but rescinded this reservation and became party to Part II, except for trade among themselves (to which the CISG is not applied as a whole due to a declaration lodged under Article 94). [86] Likewise, China, [87] Latvia, [88] Lithuania [89] and Hungary [90] withdrew their written form declaration, and the Czech Republic withdrew its declaration preventing the application of article 1(1)(b). [91] The Government of Ukraine declared its intention to withdraw the "Written Form" declaration. [92]

Some countries have expanded rather than restricted CISG application by removing one of the cumulative conditions for application within the CISG. For example, Israeli law stipulates that the CISG will apply equally to a party whose place of business is in a State that is not a Contracting State. [93]

Major absentees

India, South Africa, Nigeria, and the United Kingdom are the major trading countries that have not yet ratified the CISG.

The absence of the United Kingdom, a leading jurisdiction for the choice of law in international commercial contracts, has been attributed variously to: the government not viewing its ratification as a legislative priority, a lack of interest from business in supporting ratification, opposition from a number of large and influential organisations, a lack of public service resources, and a danger that London would lose its edge in international arbitration and litigation. [94] In 2020, the British Government informed that it had no plan to join the CISG. [95]

There is significant academic disagreement as to whether Taiwan and Macau are deemed parties to the CISG due to China's status as a party. [96] The issue has been clarified with respect to Hong Kong with the deposit of a declaration of extension of territorial application by China. [97] The Convention was incorporated into Hong Kong law through the Sale of Goods (United Nations Convention) Ordinance, which commenced on 1 December 2022. [98]

Future directions

Greater acceptance of the CISG will come from three directions. First, it is likely that within the global legal profession, as the number of new lawyers educated in the CISG increases, the existing Contracting States will embrace the CISG, appropriately interpret the articles, and demonstrate a greater willingness to accept precedents from other Contracting States.

Second, businesses will increasingly pressure both lawyers and governments to make international commercial disputes over the sale of goods less expensive, and reduce the risk of being forced to use a legal system that may be completely alien to their own. Both of these objectives can be achieved through use of the CISG. [24]

Finally, UNCITRAL will arguably need to develop a mechanism to further develop the convention and to resolve conflicting interpretation issues. [99] This will make it more attractive to both businesspeople and potential Contracting States.

Prospective Contracting States

Ethiopia [100] and Rwanda [101] have adopted laws authorising the adoption of the CISG, which will enter into force in each country after the instrument of accession is deposited with the Secretary-General of the United Nations; as of May 2023, neither country is yet a member state of the convention. [2]

Differences with country legislation relating to the sale of goods

Depending on the country, the CISG can represent a small or significant departure from local legislation relating to the sale of goods, and in this can provide important benefits to companies from one contracting state that import goods into other states that have ratified the CISG.

Differences with U.S. legislation (the UCC)

The official 2007 edition of the UCC. Uniform Commercial Code.jpg
The official 2007 edition of the UCC.

In the U.S., all 50 states have, to varying degrees, adopted common legislation referred to as the Uniform Commercial Code ("UCC"). UCC Articles 1 (General Provisions) and 2 (Sales) are generally similar to the CISG. However, the UCC differs from the CISG in some respects, such as the following areas that tend to reflect more general aspects of the U.S. legal system: [102]

Terms of Acceptance – Under the CISG, acceptance occurs when it is received by the offeror, a rule similar to many civil law jurisdictions which contemplate for service to be effective upon receipt. By contrast, the U.S. legal system often applies the so-called "mailbox rule" by which, acceptance, like service, can occur at the time the offeree transmits it to the offeror.

"Battle of the Forms" – Under the CISG, a reply to an offer that purports to be an acceptance, but has additions, limitations, or other modifications, is generally considered a rejection and counteroffer. The UCC, on the other hand, tries to avoid the "battle of the forms" that can result from such a rule, and allows an expression of acceptance to be operative, unless the acceptance states that it is conditioned on the offeror consenting to the additional or different terms contained in the acceptance.

Writing Requirement – Unless otherwise specified by a ratifying State, the CISG does not require that a sales contract be reduced to a writing. Under the UCC's statute of frauds (inherited from the common law), contracts selling goods for a price of $500 or more are generally not enforceable unless in writing.

Nevertheless, because the U.S. has ratified the CISG, it has the force of federal law and supersedes UCC-based state law under the Supremacy Clause of the Constitution. Among the U.S. reservations to the CISG is the provision that the CISG will apply only as to contracts with parties located in other CISG Contracting States, a reservation permitted by the CISG in Article 95. Therefore, in international contracts for the sale of goods between a U.S. entity and an entity of a Contracting State, the CISG will apply unless the contract's choice of law clause specifically excludes CISG terms.

Conversely, in "international" contracts for the sale of goods between a U.S. entity and an entity of a non-Contracting State, to be adjudicated by a U.S. court, the CISG will not apply, and the contract will be governed by the domestic law applicable according to private international law rules.

Differences with UK legislation

The sale of goods in the UK is regulated by:

Although the rights are broadly similar in business-to-consumer and business-to-business transactions, the remedies differ. Broadly speaking, the rights for these transactions are also similar across EU states. [103]

See also

Notes

  1. Not to be confused with other treaties signed in Vienna.

Footnotes

  1. United Nations Convention on Contracts for the International Sale of Goods, Vienna, 11 April 1980, S.Treaty Document Number 98-9 (1984), UN Document Number A/CONF 97/19, 1489 UNTS 3. The full text of the CISG is available in pdf format at https://uncitral.un.org/sites/uncitral.un.org/files/media-documents/uncitral/en/a-conf-97-19-ocred-eng.pdf at 14 February 2022.
  2. 1 2 "United Nations Treaty Collection". treaties.un.org. Retrieved 2023-12-05.
  3. United States Department of Commerce, 'The U.N. Convention on Contracts for the International Sale of Goods' "U.n. Convention on International Sale of Goods". Archived from the original on May 5, 2007. Retrieved April 2, 2007. at 22 December 2007.
  4. Standard clauses in English and in German (opt-in/opt-out): See Verweyen, Foerster, Toufar Handbuch des Internationalen Warenkaufs UN-Kaufrecht (CISG) Archived 2017-07-08 at the Wayback Machine 2. Auflage, 2008 pg. 64 (in English and German)[ failed verification ]
  5. This statement is only applicable for the US, The Czech Republic, and China, See Article 1,1B/95 Verweyen, Foerster, Toufar Handbuch des Internationalen Warenkaufs UN-Kaufrecht (CISG) Archived 2017-07-08 at the Wayback Machine 2. Auflage, 2008 pt. 21.2 pg 248 (in German)[ failed verification ]
  6. 1 2 "United Nations Convention on Contracts for the International Sale of Goods - Main Page". legal.un.org. Retrieved 2021-07-23.
  7. "Legislative History: 1980 Vienna Diplomatic Conference". Institute of International Commercial Law. 2015-06-18. Retrieved 2020-11-29.
  8. Argentina, China, Egypt, France, Hungary, Italy, Lesotho, Syria, the United States, Yugoslavia, and Zambia.
  9. Joseph Lookofsky, 'Loose Ends and Contorts in International Sales: Problems in the Harmonization of Private Law Rules' (1991) 39 American Journal of Comparative Law 403.
  10. Bruno Zeller, CISG and the Unification of International Trade Law (1st ed, 2007) 94.
  11. 1 2 John Felemegas, 'The United Nations Convention on Contracts for the International Sale of Goods: Article 7 and Uniform Interpretation (2000)' Pace Review of the Convention on Contracts for the International Sale of Goods (CISG) Archived 2018-09-15 at the Wayback Machine 115.
  12. Peter Schlechtriem, 'Requirements of Application and Sphere of Applicability of the CISG' (2005) 36 Victoria University of Wellington Law Review 781.
  13. The status of signatories to the Convention is listed at https://treaties.un.org/Pages/ViewDetails.aspx?src=TREATY&mtdsg_no=X-10&chapter=10&clang=_en.
  14. John Honnold, Uniform Law for International Sales under the 1980 United Nations Convention (3rd ed. 1999) 88.
  15. Jan Hellner, 'The UN Convention on International Sales of Goods – An Outsider's View' in Erik Jayme (ed) Ius Inter Nationes: Festschrift fur Stefan Riesenfeld (1983) 72, 76.
  16. Article 101.
  17. Arabic, Chinese, English, French, Russian, and Spanish / non-official translations of the CISG See: http://www.fr-lawfirm.de/links/pages/UN-Kaufrecht/Texte_Uebersetzungen/.
  18. Article 1 (b).
  19. More correctly, the law of New South Wales as mandated in Sale of Goods (Vienna Convention) Act 1986 (NSW).
  20. Specifically, China, Germany, Czech Republic, Saint Vincent and the Grenadines, Singapore, Slovakia, and the United States of America. See http://www.uncitral.org/uncitral/en/uncitral_texts/sale_goods/1980CISG_status.html at 22 December 2007.
  21. Article 2.
  22. From Article 2 (d) and (f), intangibles such as stocks, shares, investment securities, negotiable instruments or money, and electricity.
  23. Article 3- However, Sale of Goods contracts under the CISG may include services (e.g., transport, erection, supervision, training) up to 50% of the agreed contract price at the date of the signature of the contract (See Verweyen/Foerster/Toufar Handbuch des Internationalen Warenkaufs UN-Kaufrechts (CISG) 2. Auflage, 2008 2.1.1 p. 46)
  24. 1 2 Peter Schlechtriem, 'Requirements of Application and Sphere of Applicability of the CISG' (2005) 36 Victoria University of Wellington Law Review 781.
  25. Frank Diedrich, 'Maintaining Uniformity in International Uniform Law Via Autonomous Interpretation: Software Contracts and the CISG' (1996) 8 Pace International Law Review 303, 321, 322.
  26. Articles 6, 12.
  27. Article 7.
  28. Article 11.
  29. Specifically, Argentina, Belarus, Chile, China, Hungary, Latvia, Lithuania, Paraguay, Russian Federation, and Ukraine are not bound by Article 11.
  30. Article 4, 5
  31. In the toolbox (CD-Rom, which is attached to the Verweyen, Foerster, Toufar Handbuch des Internationalen Warenkaufs UN-Kaufrecht (CISG) Archived 2017-07-08 at the Wayback Machine 2. Auflage, 2008, the parties can easily identify the gaps and how they will be filled under the assumption of Swiss or German applicable law. This toolbox also comprises a software to determine the application of the CISG
  32. Article 7 (2)
  33. Article 14.
  34. See, for example, Carlill v. Carbolic Smoke Ball Company (1892) 2 QB 484.
  35. Article 14 (2).
  36. Article 55.
  37. Articles 15, 16 (1).
  38. Article 16 (2).
  39. Article 18.
  40. Article 19.
  41. 1 2 3 Jacob Ziegel and Claude Samson 'Report to the Uniform Law Conference of Canada on Convention on Contracts for the International Sale of Goods' (1981) Toronto 168–305.
  42. Article 30.
  43. Article 60.
  44. Article 53.
  45. Article 35.
  46. Articles 41, 42.
  47. Articles 38, 39, 40.
  48. Articles 66, 67, 68, 69, 70.
  49. See International Commercial Terms (Incoterms) in External Links.
  50. Article 25.
  51. Article 49, 64.
  52. Articles 74, 75, 76, 77.
  53. Article 81.
  54. Cf Doulton Potteries v Bronotte (1971) 1 NSWLR 591 for example of damages as inadequate.
  55. Articles 45, 46, 47, 48, 50, 51, 52, 61, 62, 63, 65, 74, 75, 76, 77.
  56. Hadley v Baxendale (1854) 9 Exch 341.
  57. Article 79.
  58. Article 84 (1).
  59. Commentary on the Draft Convention on Contracts for the International Sale of Goods, Prepared by the Secretariat, UN Doc. A/CONF.97/5 (1979).
  60. Peter Schlechtriem, Uniform Sales Law – The UN-Convention on Contracts for the International Sale of Goods (1st ed, 1986) 99.
  61. Article 84 (2).
  62. Peter Winship, "Commentary on Professor Kastely's Rhetorical Analysis" (1988) 8 Northwestern Journal of Law & Business 623, 628.
  63. Ulrich G. Schroeter, 'Backbone or Backyard of the Convention? The CISG's Final Provisions', in: C.B. Andersen & U.G. Schroeter (eds.), Sharing International Commercial Law across National Boundaries: Festschrift for Albert H. Kritzer on the Occasion of his Eightieth Birthday, London: Wildy, Simmonds & Hill (2008), 425 at 426.
  64. Jonathan Yovel, The Buyer's Right to Avoid the Contract in International Sales, in John Felemegas, ed., AN INTERNATIONAL APPROACH TO THE INTERPRETATION OF THE UNITED NATIONS CONVENTION ON CONTRACTS FOR THE SALE OF GOODS (Cambridge University Press, 2007)
  65. Article 7 (1).
  66. Arthur Rosett, 'CSIG laid Bare: A Lucid Guide to a Muddy Code' (1988) 21 Cornell International Law Journal 575.
  67. Clayton Gillette and Robert Scott, 'The Political Economy of International Sales Law' (2005) 25 International Review of Law and Economics 446.
  68. 1 2 Nicholas Whittington, 'Comment on Professor Schwenzer's Paper' (2005) 36 Victoria University of Wellington Law Review 809.
  69. Jacob Ziegel, 'The Future of the International Sales Convention from a Common Law Perspective' (2000) 6 New Zealand Business Law Quarterly 336, 338.
  70. Michael Joachim Bonell and Fabio Liguori, 'The U.N. Convention on the International Sale of Goods: A Critical Analysis of Current International Case Law' (1997) 2 Revue de Droit Uniforme 385.
  71. 1 2 Article 7 (2).
  72. Bundesgerichtshof VIII ZR 159/94. English language abstract available at http://www.uncitral.org/clout/showDocument.do?documentUid=1326 at 22 December 2007. ). Full translation available at http://www.cisg.law.pace.edu/cases/950308g3.html#ta Archived 2008-04-21 at the Wayback Machine at 22 December 2007.
  73. Caiato Roger v La Société française de factoring international factor France (SA) (1995) 93/4126. English language abstract available at http://www.uncitral.org/clout/showDocument.do?documentUid=1425 at 22 December 2007. Full translation available at http://www.cisg.law.pace.edu/cases/950913f1.html Archived 2008-04-21 at the Wayback Machine at 22 December 2007.
  74. Andrea Charters, 'Fitting the Situation: The CISG and the Regulated Market' (2005) 4 Washington University Global Studies Law Review 1, 38.
  75. Nicholas Whittington, 'Comment on Professor Schwenzer's Paper' (2005) 36 Victoria University of Wellington Law Review 809.
  76. John Felemegas, 'The United Nations Convention on Contracts for the International Sale of Goods: Article 7 and Uniform Interpretation (2000)' Pace Review of the Convention on Contracts for the International Sale of Goods (CISG) 115, 276.
  77. Articles 38 and 39 discuss the notice to be given by the buyer to the seller of non-conforming goods.
  78. CISG-AC Opinion No 2, Examination of the Goods and Notice of Non-Conformity – Articles 38 and 39, 7 June 2004. Rapporteur: Professor Eric Bergsten, Emeritus, Pace University New York 6, 7.
  79. See also for example, Antonin Pribetic, 'The (CISG) Road Less Travelled: GreCon Dimter Inc. v. J.R. Normand Inc.' (2006) 44 (1) Canadian Business Law Journal 92.
  80. Peter Mazzacano, 'Canadian Jurisprudence and the Uniform Application of the UN Convention on Contracts for the International Sale of Goods' (2006) 18 (1) Pace International Law Review 46.
  81. Arthur Rossett, 'Critical Reflections on the United Nations Convention on Contracts for the International Sale of Goods' (1984) 45 Ohio State Law Journal 265, 301.
  82. Jacob Ziegel, 'The Future of the International Sales Convention from a Common Law Perspective' (2000) 6 New Zealand Business Law Quarterly 336, 345.
  83. Luca G. Castellani, The Contribution of UNCITRAL to the Harmonization of International Sale of Goods Law Besides the CISG, Belgrade Law Review, Year LIX (2011) no. 3 pp. 28-38, at 28-33, available online at http://www.cisg.law.pace.edu/cisg/biblio/castellani3.html Archived 2015-08-22 at the Wayback Machine
  84. Franco Ferrari, 'What Sources of Law for Contracts for the International Sale of Goods? Why One Has to Look Beyond the CISG' (2005) 25 International Review of Law and Economics 314, 341.
  85. See list of signatories and their declarations at https://uncitral.un.org/en/texts/salegoods/conventions/sale_of_goods/cisg/status.
  86. "Norway Becomes a Party to Part II (Formation of the Contract) of the United Nations Convention on Contracts for the International Sale of Goods (CISG)". www.unis.unvienna.org. Retrieved 2018-10-31.
  87. "China Withdraws "Written Form" Declaration Under the United Nations Convention on Contracts for the International Sale of Goods (CISG)". www.unis.unvienna.org. Retrieved 2018-10-31.
  88. "Latvia Withdraws "Written Form" Declaration Under the United Nations Convention on Contracts for the International Sale of Goods (CISG)". www.unis.unvienna.org. Retrieved 2018-10-31.
  89. "Lithuania Withdraws "Written Form" Declaration Under the United Nations Convention on Contracts for the International Sale of Goods (CISG)". www.unis.unvienna.org. Retrieved 2018-10-31.
  90. "Hungary Withdraws "Written Form" Declaration Under the United Nations Convention on Contracts for the International Sale of Goods (CISG)". www.unis.unvienna.org. Retrieved 2018-10-31.
  91. "Czech Republic Withdraws Declarations under the CISG and the Limitation Convention". www.unis.unvienna.org. Retrieved 2018-10-31.
  92. "Кабмин одобрил закон о заключении международных договоров в электронной форме". РБК-Украина. Retrieved 24 November 2019.
  93. "CISG: participating countries - Israel". Pace Law School Institute of International Commercial Law. 2003-07-08. Archived from the original on 2018-09-09. Retrieved 2018-10-31.
  94. Moss, Sally (June 2005). "Why the United Kingdom Has Not Ratified the CISG" (PDF). Journal of Law and Commerce. 25: 483–485. Archived from the original (PDF) on 2012-11-19. Retrieved 2018-10-31 via UNCITRAL.
  95. Black, Mhairi. "UN Convention on Contracts for the International Sale of Goods. Question for Department for International Trade. UIN 114241, tabled on 11 November 2020". UK Parliament. Retrieved 14 July 2022.
  96. See Innotex Precision Ltd. v. Horei Image Prods., Inc., 679 F. Supp. 2d 1356 (N.D. Ga. 2009); America's Collectibles Network Inc. v. Timlly (hk), 746 F. Supp. 2d 914 (E.D. Tenn., 2010); Ulrich G. Schroeter, The Status of Hong Kong and Macao under the United Nations Convention on Contracts for the International Sale of Goods, 16 Pace Int'l L. Rev. 307 (2004) Available at: http://digitalcommons.pace.edu/pilr/vol16/iss2/3 ).
  97. "China deposits declaration of territorial application of the United Nations Convention on Contracts for the International Sale of Goods to Hong Kong SAR". UN Information Service. 6 May 2022. Retrieved 9 May 2022.
  98. Sale of Goods (United Nations Convention) Ordinance (Cap. 641)  § 4
  99. See John Felemegas, 'The United Nations Convention on Contracts for the International Sale of Goods: Article 7 and Uniform Interpretation (2000)' Pace Review of the Convention on Contracts for the International Sale of Goods (CISG) Chapter 3 for a discussion on how this could be achieved.
  100. MOHAMMED, ABDUREZAK (26 June 2020). "House approves extradition agreements" (PDF). No. 248. The Ethiopian Herald. Retrieved 27 July 2020.
  101. Law N°68/2013 of 30/08/2013 authorising the Accession to the United Nations Convention on Contracts for the International Sale of Goods Adopted in Vienna in 1980, Official Gazette nº51 of 23 December 2013
  102. ATTORNEY’S GUIDE: COMPARISON CHART UCC AND CISG Dr. Gizem Alper, Pace University School of Law
  103. Rasmussen, Scott (2011). "English Legal Terminology: Legal Concepts in Language, 3rd ed. By Helen Gubby. The Hague:Eleven International Publishing, 2011. Pp. 272. ISBN 978-90-8974-547-7. €35.00; US$52.50". International Journal of Legal Information. 39 (3): 394–395. doi:10.1017/s0731126500006314. ISSN   0731-1265. S2CID   159432182.

Related Research Articles

<span class="mw-page-title-main">Uniform Commercial Code</span> Uniform Act governing sales and transactions

The Uniform Commercial Code (UCC), first published in 1952, is one of a number of uniform acts that have been established as law with the goal of harmonizing the laws of sales and other commercial transactions across the United States through UCC adoption by all 50 states, the District of Columbia, and the Territories of the United States.

<span class="mw-page-title-main">Contract of sale</span> Legal contract for the purchase of assets

In contract law, a contract of sale, sales contract, sales order, or contract for sale is a legal contract for the purchase of assets by a buyer from a seller for an agreed upon value in money.

The Incoterms or International Commercial Terms are a series of pre-defined commercial terms published by the International Chamber of Commerce (ICC) relating to international commercial law. Incoterms define the responsibilities of exporters and importers in the arrangement of shipments and the transfer of liability involved at various stages of the transaction. They are widely used in international commercial transactions or procurement processes and their use is encouraged by trade councils, courts and international lawyers. A series of three-letter trade terms related to common contractual sales practices, the Incoterms rules are intended primarily to clearly communicate the tasks, costs, and risks associated with the global or international transportation and delivery of goods. Incoterms inform sales contracts defining respective obligations, costs, and risks involved in the delivery of goods from the seller to the buyer, but they do not themselves conclude a contract, determine the price payable, currency or credit terms, govern contract law or define where title to goods transfers.

<span class="mw-page-title-main">Letter of credit</span> Document issued by a financial institution

A letter of credit (LC), also known as a documentary credit or bankers commercial credit, or letter of undertaking (LoU), is a payment mechanism used in international trade to provide an economic guarantee from a creditworthy bank to an exporter of goods. Letters of credit are used extensively in the financing of international trade, when the reliability of contracting parties cannot be readily and easily determined. Its economic effect is to introduce a bank as an underwriter that assumes the counterparty risk of the buyer paying the seller for goods.

<span class="mw-page-title-main">United Nations Commission on International Trade Law</span> Trade law body of the UN

The United Nations Commission on International Trade Law (UNCITRAL) is a subsidiary body of the U.N. General Assembly (UNGA) responsible for helping to facilitate international trade and investment.

<span class="mw-page-title-main">UNIDROIT</span> Intergovernmental legal organization

UNIDROIT is an intergovernmental organization whose objective is to harmonize private international law across countries through uniform rules, international conventions, and the production of model laws, sets of principles, guides and guidelines. Established in 1926 as part of the League of Nations, it was reestablished in 1940 following the League's dissolution through a multilateral agreement, the UNIDROIT Statute. As of 2023 UNIDROIT has 65 member states.

<span class="mw-page-title-main">Implied warranty</span>

In common law jurisdictions, an implied warranty is a contract law term for certain assurances that are presumed to be made in the sale of products or real property, due to the circumstances of the sale. These assurances are characterized as warranties regardless of whether the seller has expressly promised them orally or in writing. They include an implied warranty of fitness for a particular purpose, an implied warranty of merchantability for products, implied warranty of workmanlike quality for services, and an implied warranty of habitability for a home.

<span class="mw-page-title-main">Willem C. Vis Moot</span>

The Willem C. Vis International Commercial Arbitration Moot or Vis Moot is an international moot competition. Since 1994, it has been held annually in Vienna, Austria, attracting more than 300 law schools from all around the world and spurring the creation of more than 20 pre-moots each year before the actual rounds are held in Vienna. It is the largest arbitration moot competition, and second-largest moot overall, in the world; considered a grand slam or major moot. A sister moot, known as the Willem C. Vis (East) Moot, is held in Hong Kong just before the rounds in Vienna. It was established in 2003 and attracts around 150 teams every year, making it the second largest commercial arbitration moot and also a grand slam moot. It uses the same moot problem as the Vis Moot, as does the various pre-moot friendlies.

<span class="mw-page-title-main">Canadian contract law</span> Overview of contract law in Canada

Canadian contract law is composed of two parallel systems: a common law framework outside Québec and a civil law framework within Québec. Outside Québec, Canadian contract law is derived from English contract law, though it has developed distinctly since Canadian Confederation in 1867. While Québecois contract law was originally derived from that which existed in France at the time of Québec's annexation into the British Empire, it was overhauled and codified first in the Civil Code of Lower Canada and later in the current Civil Code of Quebec, which codifies most elements of contract law as part of its provisions on the broader law of obligations. Individual common law provinces have codified certain contractual rules in a Sale of Goods Act, resembling equivalent statutes elsewhere in the Commonwealth. As most aspects of contract law in Canada are the subject of provincial jurisdiction under the Canadian Constitution, contract law may differ even between the country's common law provinces and territories. Conversely; as the law regarding bills of exchange and promissory notes, trade and commerce, maritime law, and banking among other related areas is governed by federal law under Section 91 of the Constitution Act, 1867; aspects of contract law pertaining to these topics are harmonised between Québec and the common law provinces.

Sale of Goods Acts regulate the sale of goods in several legal jurisdictions including Malaysia, New Zealand, the United Kingdom and the common law provinces of Canada.

Peter Schlechtriem was a German jurisprudential scholar.

International Commercial Law is a body of legal rules, conventions, treaties, domestic legislation and commercial customs or usages, that governs international commercial or business transactions. A transaction will qualify to be international if elements of more than one country are involved.

A contract is an agreement that specifies certain legally enforceable rights and obligations pertaining to two or more parties. A contract typically involves the transfer of goods, services, money, or a promise to transfer any of those at a future date, and the activities and intentions of the parties entering into a contract may be referred to as contracting. In the event of a breach of contract, the injured party may seek judicial remedies such as damages or equitable remedies such as specific performance or rescission. A binding agreement between actors in international law is known as a treaty.

<span class="mw-page-title-main">Jean-Paul Béraudo</span>

Justice Jean-Paul Beraudo is a lawyer, academic and author of legal works. He was Justice at the French Supreme Court and vice-chairman of the International Court of Arbitration. He lectures on International Private Law and International Trade Law at Panthéon-Sorbonne University and on Company law at Sciences-Po, Paris. The International Institute for the Unification of Private Law (UNIDROIT) appointed him correspondent for France and a member of the scientific committee.

<span class="mw-page-title-main">Rotterdam Rules</span>

The "Rotterdam Rules" is a treaty proposing new international rules to revise the legal framework for maritime affreightment and carriage of goods by sea. The Rules primarily address the legal relationship between carriers and cargo-owners.

The Global Sales Law Project is a research project based at the University of Basel under the leadership of Ingeborg Schwenzer. It compares the sales and contract laws of more than 60 jurisdictions.

Ingeborg Schwenzer is a German jurist and professor for private and comparative law at the University of Basel, Switzerland.

The United Nations Convention on the Use of Electronic Communications in International Contracts is a treaty that aims at facilitating the use of electronic communications in international trade. It was prepared by the United Nations Commission on International Trade Law (UNCITRAL) and adopted by the United Nations General Assembly on 23 November 2005. Pursuant to Article 23, it entered into force on 1 March 2013, the first day of the month after six months passed following adoption by three States parties, namely the Dominican Republic, Honduras, and Singapore.

The Convention on the Limitation Period in the International Sale of Goods is a uniform law treaty prepared by the United Nations Commission on International Trade Law (UNCITRAL). It deals with the prescription of actions relating to contracts for the international sale of goods due to the passage of time.

Ernst Rabel was an Austrian-born American scholar of Roman law, German private law, and comparative law, who, as the founding director of the Kaiser Wilhelm Institute for Foreign and International Private Law, in Berlin, achieved international recognition in the period between the World Wars, before being forced into retirement under the Nazi regime, and emigrating to the United States, in 1939. In the field of comparative law his methodological perspectives, particularly as articulated and disseminated by his students, including Ernst von Caemmerer, Gerhard Kegel, and Max Rheinstein, were influential in the development of the "functional" or "function/context" methodology that became standard in Europe, the United States, and elsewhere in the world, in the post-World War II era. His work in Germany in the 1930s in the area of the law of the sale of goods provided a model for later postwar efforts to develop a uniform world-wide sales law.

References