INTERNATIONAL LAW

International Law

International Law

Question 1

Outline and discuss each party's likely legal rights and liabilities in relation to the above detailed first and second shipment agreement deviations as governed by Australian law, assuming CISG applies.

Some sales of goods cross international borders, and for those the U.N. Convention on CISG may preside over the contract. The CISG was drafted by the UN Commission on International Trade Law (UNCITRAL) and adopted and opened for signature and ratification by a UN-sponsored diplomatic conference held at Vienna in 1980.

Thus, in relation to the above detailed first and second shipment agreement deviations as governed by Australian law, the CISG does apply to and govern a contract if the transaction is between parties whose business places are located in different states (nations) and the transaction is for commercial rather than consumer goods. However, the CISG is not so tight in its governance that there is no room left for negotiation. In the context of an international agreement, the CISG allows enough flexibility for negotiation of terms; at the same time, however, it provides a helpful frame for the contract. The CISG is helpful in overcoming the complications inherent in an international contract (Charlesworth & Williams, 2006, p.312). These complications are occasioned by the great geographic distance between the parties, different currencies necessitating a choice of currency, language barriers necessitating a choice of bargaining language, traffics, taxes, government regulations on imports and exports, risks of loss, choices of law, and cultural differences, to name a few.

The CISG is aimed to be appropriate for commercial products and goods only. By means of some inadequate exemptions, the CISG does not apply to the domestic goods, plus it does not apply to ships, auctions, services, intangibles and aircrafts (Paul 1993, p.26). The point of the computer software is contentious and will rely upon different situations and conditions.

Considerably, parties in an agreement may vary or exclude the application of the CISG. Understanding of the CISG is to embrace the 'global character' of the Convention, that is The United Nations Convention on Contracts for the International Sale of Goods and the requirement for consistent application and the requirement for good belief in international trade. Disagreements over understanding of the CISG are to be solved by referring the 'general standards' of the CISG or where there are no such standards but the issues are administered by the CISG by applying the regulations of private international law (Bergsten 1985, p.31). A major point of debate had to do with whether an agreement demands an in print memorial to be binding or not. The CISG permits for a sale to be unsigned or oral, however in few countries, agreements are not valid until written. Though in a number of nations, oral agreements are acknowledged and those states have no opposition to signing, therefore states with a strict written demand exercise their aptitude to keep out those articles applying to oral agreements allowing them to sign also. The CISG is not an absolute qualification by its own ...