The United Nations Convention On Contracts

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The United Nations Convention on Contracts for the International Sales of goods entered into force January 1 1988. Among the 79 states that have ratified or acceded to the treaty to date are Australia, Canada, the United States, Japan, the Republic of Korea, China, and Singapore. The Vienna Convention, as CISG is also known, was designed to systemise and rationalise international contracts in a particular region, drawing from a common legal framework. The CISG is divided into three substantive parts plus final clauses. (The 1980 UN Convention of Contract for the International Sale of Goods, 1990) WHEN DOES THE CISG APPLY? WHEN DOES IT NOT APPLY? Articles 1 through to 6 constitute Part I, Chapter I of the CISG, “Sphere of Application”.…show more content…
The scope of “sales of goods” governed by the treaty depends on the provisions already discussed, and on Article 2 which exclude the following transactions: 2(a) consumer purchases (unless the seller had no reason to know the goods were destined for personal or family use), 2(b) auctions, 2(c) execution or other sales under legal process, 2(d) sales of commercial paper, securities or currency, 2(e) sales of vessels, hovercraft or aircraft, and 2(f) sales of electricity. Furthermore, 3(a) sales of specifically fabricated goods for which a substantial part of the input materials are supplied by the buyer, and 3(2) contracts under which the preponderant part of the obligations of the supplier of goods consists in the supply of labour or other services are also improper transactions. ARTICLE 5 (The 1980 UN Convention of Contract for the International Sale of Goods, 1990) SUMMARY OF OTHER PARTS Articles 7 through 13, which make up Part I, Chapter II, “General Provisions”, serve as important guides for the interpretation of CISG, and for its application in concrete cases. These articles provide rules for determining the intent of parties to a contract, and address the often crucial issue of the extant to which customs and usages of a particular trade are binding.
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