The United Nations Convention on Contracts for the International Sale of Goods (CISG) is a uniform international sales law that is composed of substantive rules on which contracting states, i.e., participating countries, may rely. Below is an overview of how the CISG’s is applied in common scenarios.
- The CISG applies to contracts for the sale of goods between contracting states whose places of business are in different countries. Due to the high number of contracting states, this represents a common scenario in which the CISG is applied.
- The CISG applies to contracts for the sale of goods between non-contracting states whose places of business are in different countries when a conflict of law results in applying a contracting state’s laws.
- The CISG applies solely to contracts for the sale of commercial goods and commercial products. With a few exceptions, the CISG does not apply to family goods, personal goods, or household goods. Nor does the CISG apply to aircraft, auctions, ships, intangibles, or services.
- Parties to a contract may opt of or amend how the CISG is applied to their contract. For example, while the CISG enforcemes oral contracts, some countries require that all contracts be written. These countries that require written contracts exclude those parts of the CISG that apply to oral contracts.
- The CISG fails to address a number of contract issues that are likely to arise in international trade. When issues arise that are not covered by the CISG, applicable national laws are applied, including the conflict of law rules in effect at the place of jurisdiction.
When interpreting the CISG, be sure to consider:
- The international character of the CISG;
- The need for good faith in matters involving international trade; and
- The need for uniform application of the CISG.
When disputes over the interpretation of the CISG arise, they are to be resolved by applying the general principles of the CISG. But, in situations where no such principles exist, the CISG is to be interpreted by applying the rules of private international law.
Texas Contract Litigation Attorneys
Ajamie LLP’s contracts practice assists corporations and individuals in reviewing, negotiating, and creating effective contracts. The firm litigates contract disputes involving both domestic and international issues. Our experienced Texas attorneys have resolved controversies arising under the UCC, the United Nations Convention on Contracts for the International Sale of Goods, and other laws governing domestic and international commerce. Our attorneys also provide cross-border representation in a variety of business disputes. Please contact one of our experienced contract litigation attorneys for a consultation.