Contracts for the International Sale of Goods (CISG)

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ABSTRACT

This paper focuses on comparing the United Nations Convention on Contracts for the International Sale of Goods (CISG) with the English Sale of Goods Act 1979 (SOGA) and other relevant national laws such as American law and German law e.t.c . It assesses the suitability of the laws for international commercial transactions. In the world of today, globalization is at the forefront of development. In a modern commercial world, cross border trade has become increasingly easy to create. As a result when an argument arises the question still remains how international parties should resolve these issues or what laws should be used in solving the situation. The parties are international so it is only appropriate that the regulatory scheme is international in nature. Harmonised laws remove impediments in cross border transactions such as reducing conflict of law issues and transaction costs. Despite the efficiency of international conventions, domestic laws are seen as more experienced and certain. This is why contracting parties sometimes opt out of conventions. With a harmonised law the state is no longer an enabling factor of the law, thus giving away its legislative authority to an international order. This displaces the domestic rules for an international instrument that lacks government's involvement and legislative scrutiny. In a world where parties have both options of domestic and harmonised commercial law, the question becomes whether one option is, on balance more suitable than the other. The United Nations Convention on Contracts for the International Sale of Goods (CISG) was signed in Vienna in 1980 and came into force in 1988. It is arguably one of the most successful harmonised instruments. It may have had a slow beginning taking 12years to draft but it has paid off. It has been ratified by the most influential countries of the world such as the United States, China, Australia, Canada etc, although the UK is still not a signatory to the convention. Harmonised laws such as the CISG have issues of compromises, which are seen as draw backs for uniform laws. Michael Bridge has argued that this also involves the 'acceptance of the adage that the best is the enemy of the good'. This is a serious draw back for a harmonised instrument. This research intends to evaluate the drive towards harmonization and the attempts that have been made to achieve harmonisation, taking into account the United Nations Convention on Contracts for the International Sale of Goods (CISG). The English Sale of Goods Act 1979 and other relevant national law will ...