Chapter 1
The law has three functions:
- It provides rules to solve conflicts
- It has a regulatory function. Rules and regulations on the basis of which society is
organized.
- What we wish to achieve with law: a society for everybody, protection of the weaker
party and a society in which everybody’s interests are respected. This will be often
determined by political choices
International law
Values and standards of society vary in the world. There is no single world government to
make and enforce laws.
Yet, we use the term ‘international law’. But what is ‘international law’?
According to the following definition it is a:
“Body of legal rules governing interaction between sovereign states and the rights and
duties of the citizens of sovereign states towards the citizens of other sovereign states.
It has been built up piecemeal through agreements, compromises, conventions,
understandings etc.
It isn’t 'World Law' but law between sovereign states, (each government can decide
which law it will adhere to or not) and has not been able to solve the problems of inter-
state aggression, conflict, terrorism, and war.
The UN is entrusted with developing international law in various areas. A good example of its
activities in the field of international business law is on Contracts for the International Sale of
Goods.The CISG is a treaty that is a uniform international sales law, which is however law and
therefore binding only on the countries that have signed and ratified it.
The CISG (also Vienna Convention) allows exporters to avoid choice of law issues (which law
of which country applies), it offers substantive rules on which contracting parties may rely.
Unless excluded by the express terms of a contract, the CISG is deemed to be incorporated
into (and replaces) any otherwise applicable domestic law(s) with respect to a transaction in
goods between parties from different Contracting States.
Each sovereign state has its rules and these rules have an impact on the ways international
business is conducted (needs to be aware of the different rules). The choice to ratify the CISG
or not could be a political statement. The United Kingdom for example has not yet ratified.
Legal traditions, families, systems
The different sets of rules of the world’s nations have been classified into different “legal
families”. These systems, or traditions are related, usually by a common historical basis and
shared characterstics.
There are two different law systems:
- Civil Law system France, Germany, Spain, the Netherlands etc.
- Common Law system England and Wales (origannaly) , US- with the exception of
the state of Louisiana-, Australia, New-Zealand and India etc.
- We also have legal families the Family and inheritance law, are influenced by religious
convictions.This is the case with regard to the Islamic and the Hindu legal systems.
Other topics pertaining to private law in these legal families are usually determined by
the law of the former colonial ruler.
It should be noted however that Scotland and Canada have a mix of Common law and Civil
law.
The law has three functions:
- It provides rules to solve conflicts
- It has a regulatory function. Rules and regulations on the basis of which society is
organized.
- What we wish to achieve with law: a society for everybody, protection of the weaker
party and a society in which everybody’s interests are respected. This will be often
determined by political choices
International law
Values and standards of society vary in the world. There is no single world government to
make and enforce laws.
Yet, we use the term ‘international law’. But what is ‘international law’?
According to the following definition it is a:
“Body of legal rules governing interaction between sovereign states and the rights and
duties of the citizens of sovereign states towards the citizens of other sovereign states.
It has been built up piecemeal through agreements, compromises, conventions,
understandings etc.
It isn’t 'World Law' but law between sovereign states, (each government can decide
which law it will adhere to or not) and has not been able to solve the problems of inter-
state aggression, conflict, terrorism, and war.
The UN is entrusted with developing international law in various areas. A good example of its
activities in the field of international business law is on Contracts for the International Sale of
Goods.The CISG is a treaty that is a uniform international sales law, which is however law and
therefore binding only on the countries that have signed and ratified it.
The CISG (also Vienna Convention) allows exporters to avoid choice of law issues (which law
of which country applies), it offers substantive rules on which contracting parties may rely.
Unless excluded by the express terms of a contract, the CISG is deemed to be incorporated
into (and replaces) any otherwise applicable domestic law(s) with respect to a transaction in
goods between parties from different Contracting States.
Each sovereign state has its rules and these rules have an impact on the ways international
business is conducted (needs to be aware of the different rules). The choice to ratify the CISG
or not could be a political statement. The United Kingdom for example has not yet ratified.
Legal traditions, families, systems
The different sets of rules of the world’s nations have been classified into different “legal
families”. These systems, or traditions are related, usually by a common historical basis and
shared characterstics.
There are two different law systems:
- Civil Law system France, Germany, Spain, the Netherlands etc.
- Common Law system England and Wales (origannaly) , US- with the exception of
the state of Louisiana-, Australia, New-Zealand and India etc.
- We also have legal families the Family and inheritance law, are influenced by religious
convictions.This is the case with regard to the Islamic and the Hindu legal systems.
Other topics pertaining to private law in these legal families are usually determined by
the law of the former colonial ruler.
It should be noted however that Scotland and Canada have a mix of Common law and Civil
law.
