Follow us on
LinkedIn Profile
United Nations Convention on Contracts for the International Sale of Goods (Vienna, 1980) (CISG)
Purpose
The purpose of the CISG is to provide a modern, uniform and fair regime for contracts for the international sale of goods. Thus, the CISG contributes significantly to introducing certainty in commercial exchanges and decreasing transaction costs.
Why is it relevant?
πThe contract of sale is the backbone of international trade in all countries, irrespective of their legal tradition or level of economic development. The CISG is therefore considered one of the core international trade law conventions whose universal adoption is desirable.
πThe CISG is the result of a legislative effort that started at the beginning of the twentieth century. The resulting text provides a careful balance between the interests of the buyer and of the seller. It has also inspired contract law reform at the national level.
πThe adoption of the CISG provides modern, uniform legislation for the international sale of goods that would apply whenever contracts for the sale of goods are concluded between parties with a place of business in Contracting States.
Key provisions
πThe CISG governs contracts for the international sales of goods between private businesses, excluding sales to consumers and sales of services, as well as sales of certain specified types of goods. It applies to contracts for sale of goods between parties whose places of business are in different Contracting States, or when the rules of private international law lead to the application of the law of a Contracting State.
πIt may also apply by virtue of the parties’ choice. Certain matters relating to the international sales of goods, for instance, the validity of the contract and the effect of the contract on the property in the goods sold, fall outside the Convention’s scope.
πThe second part of the CISG deals with the formation of the contract, which is concluded by the exchange of offer and acceptance. The third part of the CISG deals with the obligations of the parties to the contract. Obligations of the sellers include delivering goods in conformity with the quantity and quality stipulated in the contract, as well as related documents, and transferring the property in the goods.
πObligations of the buyer include payment of the price and taking delivery of the goods. In addition, this part provides common rules regarding remedies for breach of the contract. The aggrieved party may require performance, claim damages or avoid the contract in case of fundamental breach.
πAdditional rules regulate passing of risk, anticipatory breach of contract, damages, and exemption from performance of the contract. Finally, while the CISG allows for freedom of form of the contract, States may lodge a declaration requiring the written form.
Choose ADROIT as your Expert Advisor!
A-202 Oak Canopy, Trichy Road,
Coimbatore - 641 005,
Tamil Nadu, India.
Post Box 228, Postal Code 211,
Muscat - Oman.
This website has been designed only for the purposes of dissemination of basic information on ADROIT; information which is otherwise available on the internet, various public platforms and social media. Careful attention has been given to ensure that the information provided herein is accurate and up-to-date.
This website is not an attempt to advertise or solicit clients and does not seek to create or invite any lawyer-client relationship. The links provided on this website are to facilitate access to basic information on ADROIT, and, to share the various thought leadership initiatives undertaken by it. The content herein or on such links should not be construed as a legal reference or legal advice. Readers are advised not to act on any information contained herein or on the links and should refer to legal counsels and experts in their respective jurisdictions for further information and to determine its impact.