Why and how does CISG (United Nation Convention on the International Sales of Goods) favour exporters?
Résumé de l'exposé
The CISG (United Nation Convention on the International Sales of goods) is a very useful law that facilitates transactions of goods between countries. With the increasing world trade exchanges, it seems useful to have a set of procedures that allow both parties in different countries to agree on common rules that regulate their transaction, and not to refer to the domestic law of each one. However not all countries have accepted this convention, and also not all "traders" have to agree on the use of this convention. What could explain the fact that this convention is not accepted by everybody? Does it favor one or the other party? In this paper, we will briefly explain what the CISG is and what has been said about it, and then analyze how this treaty could be in favor of exporters through its rules, firstly about formation of the contract, and then the duties and obligations of the seller and buyers with respect to the performance of the contract and its breach. This paper will be selective and not show all aspects of the CISG. Moreover, the sources are for the most part written by American authors, and this explains why the CISG is often compared to the UCC which is the domestic law of the United States. An attempt will be made to compare
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Sommaire de l'exposé
Definition of CISG and aspects regarding exporters
[...] He explains a case: a Canadian company sells a machine to an American buyer. The Canadian seller has changed the contract and added a clause excluding any consequential damage. However, the machine had later a problem. The buyer wanted the seller to pay for the damages occurred. The author explains that the seller would have to pay under the UCC, but with the CISG, seller's acknowledgement would be reviewed as a counter offer because it contained these different or additional terms. [...]
[...] However, the contract is not permanent. Performance is suspended only for a duration of the impediment. And prompt notice to the other party must be given.? The other domestic laws as the French one for instance are more flexible and the breach of the contract is definitive in case of external situation changes. Concerning the buyer, as we have seen, if the seller breaches a contract, the buyer should give him time to cure the defects or deliver the goods in case they are not delivered. [...]
[...] According to UNCITRAL, its goal is to be unification and harmonization of international trade (2004a, p.22). Finally, J.A.Spanogle and P. Winship (2000, p.44), write convention will rarely conflict with States laws because the convention only applies to international sales contracts.? [ ] convention covers the formation of the contracts for the international sales of goods, and the rights and obligations of parties to these sales contracts.? [ ] ?Like the legal rules in most domestic sales laws, the Convention's rules are ?suppletory? rather than mandatory.? This definition of the CISG is very brief but we will more analyze the aspects of the law that favour the exporter than the whole law Why does CISG would favour exporters? [...]
[...] Incorrect analysis could put buyer in the position of making a fundamental breach through its response?. J. Murray (1999b), adds that ?under the UCC, the remedy of specific performance (ordering the other party to perform the contract rather than pay damages), is limited to rare situations while under CISG it is viewed as a normal remedy. Buyers should understand the differences between CISG and UCC before they form such contracts.? Thus, France (2005) seems to be right when she states that convention places much more emphasis on keeping contracts alive rather than focusing on rights to terminate if goods are not provided within the timeframe stated, or do not exactly comply with the specifications in the contract [ ] The difference between this convention and commonwealth and European laws seems to be that it's better to keep contracts going on when the goods have been transported along a long distance [ ] Some people take the view that the framework is not appropriate for certain types of goods such as commodities where, customarily, importance has been placed on a buyer's right to reject goods if they do not comply with their requirements.? 4.1 Nachfrist Notice L.A. [...]
[...] Why and how does CISG (United Nation Convention on the International Sales of Goods) favour exporters? Table of contents: Why and how does CISG favour exporters? 1 Introduction: Definition of CISG and aspects regarding exporters Definition of CISG: Why does CISG would favour exporters? Business reason: Writers' point of view: Formation of the contract: Parole evidence rule and formation of a contract: Battle of the forms Seller and buyer's duties Seller's obligations: Quantity, quality, and title: Delivery of goods: Seller's right to cure Buyer's obligations and duties: Currency matters: Duty to inspect and proper notice Risk of loss How to breach a contract? [...]
Économie, administration & politique