International and European law
Chapter 8: The international sale of goods
8.1 introduction
Content contract of sale:
1. Identification of the parties
2. Subject of the contract
3. Obligations of the parties
4. Breach of contract and disclaimers
5. Duration and termination of the contract
6. Choice of law
7. Conflict resolution
8. Boilerplate clauses
9. Signatures
CISG= the united nations convention on the sale of goods= the Vienna convention= regulates
the law of obligations and includes on the passing of risk from seller to buyer
= a UN convention with substantive law on the international sale of goods
CISG only into international sales, only applies to the sale of goods, not services
Does not apply to:
- Sale of goods bought for personal, family or household use, unless the seller didn’t
know that the goods were for that purpose
- Consumer contracts fall outside the scope of CISG because states have varying
mandatory rules protecting consumers
- Barter contract, because payment is seen as central to a contact of sale
Barter contract= a contract whereby one party gives goods or services to another party and
does not receive money in return, but goods or other services
Article 6 CISG -> possible for parties to agree that the CISG do not apply or parts of it to the
contract. Each party has to agree
Reasons excluding CISG:
- People who draft the contract know their own national law better than the CISG
- It is a relatively recent treaty and the national courts’ interpretation remains
uncertain
,UNICTRAL= department of the UN specializing in commercial law reform worldwide
------> has a system called CLOUT= collecting and disseminating information on court
decisions on the CISG
8.2 content of CISG
Article 23 CISG if an offer is accepted, there is agreement and at that moment the
contract is concluded
Article 18 under 2 CISG acceptance of an offer becomes effective at the moment the
indication of assent reaches the person making the offer
Article 15 CISG an offer is valid the moment it reaches the other party, the person who
make the offer can withdraw up to and including the moment the offer reaches the other
party
Article 16 CISG up to the moment the person receiving the offer sends his acceptance the
person making the offer can revoke the offer, unless the offer is irrevocable
, No contract is concluded, if offer is:
Withdrawn Revoked
Possible before or at the same time as the If the revocation reaches the person
offer reaches the person receiving the offer. receiving the offer before he has dispatched
Article 15 CISG an acceptance. Article 16 CISG
Even if: Unless:
Offer is irrevocable Offer is irrevocable
Counteroffer= is a new offer
Silence or inactivity of the person who receiving the offer -> does not count as acceptance
Article 18 under 2 CISG the offer has to be accepted within reasonable time
Article 11 CISG acceptance does not necessarily have to be written
Advisable to make a written contract
According to article 30 the seller has to:
- Deliver the goods, including the documents
- Transfer property of the goods
- Deliver the goods agreed upon the contract
Seller has the obligation to preserve the goods if buyer fails to take delivery
The goods are not conform the contract, if they are not:
- Fit for the purposes for which goods of the same description would ordinarily be used
- Fit for any particular purpose expressly or impliedly made known to the seller at the
time of the conclusion of the contract, except where the circumstances show that the
buyer did not rely, or that it was unreasonable for him to rely, on the seller’s skill and
judgement
- Possessing the qualities of goods which the seller has held out to the buyer as a
sample or model
- Contained or packaged in the manner usual for such goods or, where there is no such
manner, in a manner adequate to preserve and protect the goods
Avoid discussions about how long reasonable time is -> explicitly stipulate the reasonable
time in the contract
Article 39 under 2 CISG buyer loses the right to rely on a lack of conformity of the goods if
he does not give the seller notice thereof at the latest within period of two year from the
date on which the goods were handed to the buyer
Two possible ways to escape from the two-year time limit:
- If the lack of conformity relates to facts which the seller knew or could not have been
unaware of, and which he did not disclose the buyer
- The buyer may reduce the purchase price if he has a reasonable excuse for his failure
to give the required notice (is virtually never successful)
Risk of damage of the goods passes at the moment agreed upon by the parties
No agreement? -> risk passes when the buyer takes over the goods or if the buyer does not
do so in due time
Chapter 8: The international sale of goods
8.1 introduction
Content contract of sale:
1. Identification of the parties
2. Subject of the contract
3. Obligations of the parties
4. Breach of contract and disclaimers
5. Duration and termination of the contract
6. Choice of law
7. Conflict resolution
8. Boilerplate clauses
9. Signatures
CISG= the united nations convention on the sale of goods= the Vienna convention= regulates
the law of obligations and includes on the passing of risk from seller to buyer
= a UN convention with substantive law on the international sale of goods
CISG only into international sales, only applies to the sale of goods, not services
Does not apply to:
- Sale of goods bought for personal, family or household use, unless the seller didn’t
know that the goods were for that purpose
- Consumer contracts fall outside the scope of CISG because states have varying
mandatory rules protecting consumers
- Barter contract, because payment is seen as central to a contact of sale
Barter contract= a contract whereby one party gives goods or services to another party and
does not receive money in return, but goods or other services
Article 6 CISG -> possible for parties to agree that the CISG do not apply or parts of it to the
contract. Each party has to agree
Reasons excluding CISG:
- People who draft the contract know their own national law better than the CISG
- It is a relatively recent treaty and the national courts’ interpretation remains
uncertain
,UNICTRAL= department of the UN specializing in commercial law reform worldwide
------> has a system called CLOUT= collecting and disseminating information on court
decisions on the CISG
8.2 content of CISG
Article 23 CISG if an offer is accepted, there is agreement and at that moment the
contract is concluded
Article 18 under 2 CISG acceptance of an offer becomes effective at the moment the
indication of assent reaches the person making the offer
Article 15 CISG an offer is valid the moment it reaches the other party, the person who
make the offer can withdraw up to and including the moment the offer reaches the other
party
Article 16 CISG up to the moment the person receiving the offer sends his acceptance the
person making the offer can revoke the offer, unless the offer is irrevocable
, No contract is concluded, if offer is:
Withdrawn Revoked
Possible before or at the same time as the If the revocation reaches the person
offer reaches the person receiving the offer. receiving the offer before he has dispatched
Article 15 CISG an acceptance. Article 16 CISG
Even if: Unless:
Offer is irrevocable Offer is irrevocable
Counteroffer= is a new offer
Silence or inactivity of the person who receiving the offer -> does not count as acceptance
Article 18 under 2 CISG the offer has to be accepted within reasonable time
Article 11 CISG acceptance does not necessarily have to be written
Advisable to make a written contract
According to article 30 the seller has to:
- Deliver the goods, including the documents
- Transfer property of the goods
- Deliver the goods agreed upon the contract
Seller has the obligation to preserve the goods if buyer fails to take delivery
The goods are not conform the contract, if they are not:
- Fit for the purposes for which goods of the same description would ordinarily be used
- Fit for any particular purpose expressly or impliedly made known to the seller at the
time of the conclusion of the contract, except where the circumstances show that the
buyer did not rely, or that it was unreasonable for him to rely, on the seller’s skill and
judgement
- Possessing the qualities of goods which the seller has held out to the buyer as a
sample or model
- Contained or packaged in the manner usual for such goods or, where there is no such
manner, in a manner adequate to preserve and protect the goods
Avoid discussions about how long reasonable time is -> explicitly stipulate the reasonable
time in the contract
Article 39 under 2 CISG buyer loses the right to rely on a lack of conformity of the goods if
he does not give the seller notice thereof at the latest within period of two year from the
date on which the goods were handed to the buyer
Two possible ways to escape from the two-year time limit:
- If the lack of conformity relates to facts which the seller knew or could not have been
unaware of, and which he did not disclose the buyer
- The buyer may reduce the purchase price if he has a reasonable excuse for his failure
to give the required notice (is virtually never successful)
Risk of damage of the goods passes at the moment agreed upon by the parties
No agreement? -> risk passes when the buyer takes over the goods or if the buyer does not
do so in due time
