"BUSINESS LAW 8 - Contract for the international sale of goods Flashcards
(13 cards)
What is the United Nations Convention on Contracts for the International Sale of Goods (CISG)?
The CISG is an international treaty that provides universally applicable substantive law for international sale of goods. It deals with:
Formation of sale contracts.
Rights and obligations of the parties.
What is excluded from the material scope of the CISG?
The CISG excludes:
Goods bought for personal or household use.
Goods bought at auction or on execution.
Negotiable instruments, stocks, shares, money, ships, aircraft, and electricity.
What is the personal and territorial scope of the CISG?
Personal scope: Applies to parties whose places of business are in different countries.
Territorial scope: Applies if the parties’ places of business are in contracting states or if private international law leads to the application of a contracting state’s law.
How is the CISG interpreted?
The CISG is interpreted based on:
Its international character.
The need to promote uniformity in its application.
The principle of good faith.
What are the conditions for written usages to apply under the CISG?
Written usages apply if:
The parties knew or ought to have known about them.
They are widely known in international trade.
They are regularly observed in the particular trade concerned.
What are the requirements for a valid offer under the CISG?
A valid offer must:
Be addressed to one or more specific persons.
Intend to conclude a contract.
Be sufficiently definite (goods, quantity, price).
What constitutes acceptance under the CISG?
Acceptance can be:
An express statement.
Performance of an act.
Silence or inactivity does not constitute acceptance.
What are the seller’s obligations under the CISG?
The seller must:
Deliver the goods as required by the contract.
Transfer property in the goods.
Hand over related documents.
What are the buyer’s obligations under the CISG?
The buyer must:
Take delivery of the goods (including examining them and giving notice of non-conformity).
Pay the price as agreed or generally charged in the trade.
What is a fundamental breach under the CISG?
A fundamental breach is one that substantially deprives the other party of what they are entitled to expect under the contract, unless the breaching party could not foresee the result.
What are the remedies for a fundamental breach under the CISG?
Remedies include:
Avoidance of the contract.
Requiring substitute goods.
Price reduction or repair of goods in case of ordinary breaches.
How are damages calculated under the CISG?
Damages include:
The actual loss suffered.
Loss of profit.
However, damages cannot exceed the loss foreseen or foreseeable at the time of contract conclusion.
When does the risk pass to the buyer under the CISG?
The risk passes to the buyer:
When goods are handed over to the first carrier (if carriage is involved).
At the place of delivery if the seller is bound to hand over goods at a specific place.
For goods in transit, when the contract is concluded.
