,LJU4804 Assignment 2 (COMPLETE ANSWERS)
Semester 1 2025 (166975) - DUE 16 April 2025
Computec (Pty) Ltd is a South African company with its
principal place of business in Johannesburg, South Africa.
Computec manufactures and exports computer hardware
components. Technologie GmbH is a German company with its
principal place of business in Hamburg, Germany. Technologie
regularly purchases large consignments of computer hardware
from Computec. It has become standard practice between the
companies that the goods are shipped CIF (Hamburg)
(Incoterms 2020). Payment is always made by means of
confirmed letters of credit, issued by Deutsche Bank (Berlin)
and confirmed by Rand Merchant Bank, (Johannesburg).
The contract contains a choice of law clause in favour of
German law. During June 2023, a dispute arose as to the quality
of a shipment of computer components received in May of that
year. Technologie argued that the quality of the hard drives
received in that shipment, were not of the same quality as those
received in previous orders and demanded that the hard drives
be replaced. Computec refused, arguing that the goods were in
conformity with the contract. In February 2024, Technologie
instituted a claim against Computec in the South Gauteng High
Court.
1.1 Germany is a CISG contracting state. Should the CISG be
applied to the dispute between the parties? (Refer to the
applicability criteria of the CISG and your prescribed journal
article on the topic). (3)
, Introduction to the CISG and its Applicability Criteria
The United Nations Convention on Contracts for the
International Sale of Goods (CISG) is an international
treaty designed to provide a uniform legal framework
governing international sales transactions. South Africa is
not a party to the CISG, whereas Germany is a CISG
contracting state. The Convention applies automatically
to international sales contracts between parties whose
places of business are in different contracting states,
unless the parties have expressly excluded its application
(Article 1(1)(a)).
Alternatively, the CISG may also apply via private
international law rules if only one party is based in a
CISG contracting state (Article 1(1)(b)). This typically
happens where the applicable law of the contract (as
determined by conflict of law rules) is the law of a CISG
contracting state.
Step-by-Step Analysis of CISG Applicability
1. Internationality of the Contract
The contract between Computec (Pty) Ltd and
Technologie GmbH is clearly international in nature, as
the parties have their places of business in different
countries—South Africa and Germany, respectively.
Semester 1 2025 (166975) - DUE 16 April 2025
Computec (Pty) Ltd is a South African company with its
principal place of business in Johannesburg, South Africa.
Computec manufactures and exports computer hardware
components. Technologie GmbH is a German company with its
principal place of business in Hamburg, Germany. Technologie
regularly purchases large consignments of computer hardware
from Computec. It has become standard practice between the
companies that the goods are shipped CIF (Hamburg)
(Incoterms 2020). Payment is always made by means of
confirmed letters of credit, issued by Deutsche Bank (Berlin)
and confirmed by Rand Merchant Bank, (Johannesburg).
The contract contains a choice of law clause in favour of
German law. During June 2023, a dispute arose as to the quality
of a shipment of computer components received in May of that
year. Technologie argued that the quality of the hard drives
received in that shipment, were not of the same quality as those
received in previous orders and demanded that the hard drives
be replaced. Computec refused, arguing that the goods were in
conformity with the contract. In February 2024, Technologie
instituted a claim against Computec in the South Gauteng High
Court.
1.1 Germany is a CISG contracting state. Should the CISG be
applied to the dispute between the parties? (Refer to the
applicability criteria of the CISG and your prescribed journal
article on the topic). (3)
, Introduction to the CISG and its Applicability Criteria
The United Nations Convention on Contracts for the
International Sale of Goods (CISG) is an international
treaty designed to provide a uniform legal framework
governing international sales transactions. South Africa is
not a party to the CISG, whereas Germany is a CISG
contracting state. The Convention applies automatically
to international sales contracts between parties whose
places of business are in different contracting states,
unless the parties have expressly excluded its application
(Article 1(1)(a)).
Alternatively, the CISG may also apply via private
international law rules if only one party is based in a
CISG contracting state (Article 1(1)(b)). This typically
happens where the applicable law of the contract (as
determined by conflict of law rules) is the law of a CISG
contracting state.
Step-by-Step Analysis of CISG Applicability
1. Internationality of the Contract
The contract between Computec (Pty) Ltd and
Technologie GmbH is clearly international in nature, as
the parties have their places of business in different
countries—South Africa and Germany, respectively.
