The Application of International Sales of Goods Contracts Law Accord
Introduction
The Application of The International Sales of Goods Contracts Law Accord, also referred to as CISG, seeks to create a uniform and international business code, ensuring entrepreneurs, contractors and fair dealing within commerce. This aims to eliminate the need for complicated and conflicting laws that are always in question when goods are sold and transported across international boundaries. It’s an internationally accepted legal framework within which sellers, buyers, and contracting parties can contract on a uniform, equal, and internationally accepted set of laws.
History of CISG
The Convention was drafted in 1980 and was signed by nations including the United States, Germany, France and Belgium. Since then, the Convention has been adopted by over 70 countries worldwide and it is widely regarded as being the primary international law governing the sale of goods across international borders. The Convention has also been recognised as a source of law for other UN and WTO conventions also.
Scope of CISG
The scope of CISG is fairly wide. The Convention applies to all international sales of goods between two different countries, no matter what the point of origin, destination or the type of goods being sold. The Convention also applies to all contracts of sale in those countries that have ratified the convention. It even applies to contracts where there are no parties, such as a contract of sale between a manufacturer and a distributor, as long as it takes place within the scope of the Convention.
The Conventions provisions apply to all contracts of storage, transport, and insurance that are related to the sale of goods. It also applies to contracts between agents and principals. In addition, the Convention applies to matters relating to the delivery, transfer of title, payment, and the transfer of risk between the seller and the buyer.
Main Features
The main features of the Convention are the elimination of conflicting laws, the creation of a uniform governing system, and greater legal protection for the parties. It also provides specific definitions and approval criteria for international transactions and specifies that buyers and sellers of goods are treated equally, regardless of country of origin or point of destination.
The other important feature of the Convention is that it provides for an equitable dispute settlement process, that is also uniform and applicable to all parties. The Convention also guarantees that each party involved in the dispute will receive a fair, impartial hearing, with all relevant information and evidence being placed before the court.
The final feature of the Convention is that it promotes transparency and accountability within international business transactions. By setting out a uniform set of laws, it is much easier to identify and address any issues that may arise during the process, making international business much more secure and fair.
Conclusion
The Application of The International Sales of Goods Contracts Law Accord has proven to be a significant success in international business and has been accepted as the primary source of law by many countries. It is a world-wide uniform standard for conducting international business, making it much easier for parties to settle disputes, and providing better protection for buyers and sellers. The Convention also provides an equitable and uniform dispute settlement process, which ensures that all parties receive a fair hearing. By providing such a uniform and equal international legal framework, the Convention has become one of the most essential elements of conducting successful international trade.
