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Chapter 3: Contract Law For The International Sale of Goods Chapter Outline Introduction to CISG CISG? Transactions covered in CISG CISG? CISG = The United Nations Convention on Contracts for the International Sale of Goods CISG? History: came into force on January 1, 1988 Original eleven States: Argentina, China, Egypt, France, Hungary, Italy, Lesotho, Syria, United States, Yugoslavia and Zambia Languages: 6. English, French, Chinese, Spanish, Arabic and Russian CISG? Contracting states: 76 countries (7 July 2010) /cisg/countries/cntries.html China: effective date: 1 January 1988 Governs over two-thirds of all goods moving in international trade Organization of CISG Part I: (Art1-13) the Convention’s general provisions, including rules on the scope of its applications and rules of interpretation Part II: (Art. 14-24) Formation of Contracts Part III: (Art.25-88) rights and obligations of buyers and sellers Part IV: (Art.89-101) Final provisions. back Transactions Covered in CISG(Art. 1-6) CISG applies to Contracts for the international sale of goods. International Commercial sale of goods International Contracts carried out entirely within one country’s borders: are governed by that country’s law United States: UCC France: Both Civil Code and Code of Commerce China: General Principles of the Civil Law and Contract Law Are they defined as International The business between a Chinese and a French? The business is negotiated in a foreign country? Goods are delivered to a foreign country? places of business of buyer’s and seller’s are in different states? Places of business Facts: the contract is between two Chinese companies negotiated entirely within China but one of them had a place of business outside China the contract was formed with that branch and to be performed outside China. Issue: Does CISG govern this transaction? Places of business Decision: Yes, it is “places of business” that determines “intern
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