International Contracts 2007

InternationalContractsUnitedNationsConventiononContractsfortheInternationalSaleofGoodsObjectivesDescribethehistoryandscopeoftheCISG(ConventionfortheInternationalSaleofGoods)DescribeandunderstandthekindsoftransactionsthatarecoveredbyandexcludedfromtheCISG.ExplainhowtheCISGisusuallyinterpretedExplainhowCISGcontractsareformedObjectivesDescribethecontractualstandardofperformancesetoutintheCISGDescribetheseller’sobligationofperformanceDescribethebuyer’sobligationofperformanceExplainhowriskispassedfromsellertobuyerDescribetheremediesavailableDescribetheexcusesavailablefornonperformance.UnitedNationsConventiononContractsfortheInternationalSaleofGoodsHistory:•EffectiveinJanuary1988•Tobeboundthecountriesmusteitherbesignatoriestotheconventionor•Therulesofinternationallawmust“leadtotheapplication”(inotherwords‘mustappearthat’)thecountrythathassignedwouldbetheonewhoselawwouldbefollowed.•IftheCISGappliesthelocallawisnotfollowed.TheremediesavailableundertheCISGaretheonlyonesavailable.CoveredTransactionsInternationalSalesmeanthepartiesdoingbusinesshavetheirplacesofbusinessindifferentcountries.BothofthecountrieshavesignedtheCISGItisclearthelawoftheonecountrythathassignedisthelawthatshouldbeapplied.TransactionsCoveredPartiestocontractsmaymodifytheapplicationoftheCISGbychoosingthelawthatwillapplythroughthecontract.SalemeanspassingoftitlefromasellertoabuyerforapriceCISGdoesnotactuallydefinegoodsbutitassumestheyaremovable,tangibleitems.TransactionsCoveredExcluded(排除)fromcoverageare•Financialinstruments•Money•Shipsandairplanes•Electricity•Goodsboughtforpersonalfamilyorhouseholduse,atauctionsalesorthroughlegalproceedings.MixedSales–•WhenasaleincludesbothgoodsandservicestheCISGwillapplyunlessitisclearthemainpointofthecontractwasthesupplyofservicesorlaborandnotgoods.•AllcontractstomanufacturegoodswillbesalesunlessthebuyersuppliesasubstantialpartofthematerialIssuesNotEverCoveredTheconventiondoesnothaveanyrulesrelatedtoincompetencyorillegalitybecauselocalruleswillvarysomuchitisimpossibletopredeterminewhattherulesmaybe.Claims（要求）forpersonalinjury（伤害）ordeathwereexcludedforthesamereasonsInterpretationoftheLawTointerprettherulesoftheCISGastheyapplytoaspecificcontractacourtlooksat:•1.FirsttheCISGitself•2.ThegeneralprinciplesonwhichtheCISGisbased.•3.Therulesofinternationallawgoverningthesaleofgoods.InterpretationoftheLawTheCISG:•WhendecidingwhatthewordsoftheCISGmeanthecourtmustconsiderTheinternationalcharacteroftheCISG:Itismeanttobealawthatallthecountriescanuseanditismeanttodecreaseconflictsbetweenthelawofdifferentcountries.Theneedforlawsofinternationalsalestobeuniform（一致的）.Theneedforpartiestocontracts,nomatterwheretheyhavetheirprincipal（主要的）placeofbusinesstooperateingoodfaithwitheachother(tobehonestintheirdealings).InterpretationoftheLawGeneralPrinciples•ThesearethebasicrulesthatappeartobebehindtheCISGrules.•ThereisnospecificlistofGeneralPrinciplesintheCISG•GeneralPrinciplesmustbedeterminedfromthesectionsintheCISGandthenappliedtothefactsofthecasebeingconsidered.InterpretationoftheLawRulesofInternationalLaw•Thesearethelawsthecountriesuseintheirlocal(domestic)courts.•TheselawsmaybeusedonlywhentheCISGdoesnotsettlethematteror•TheGeneralPrinciplesoftheCISGdonotcoverthematter.InterpretationoftheSalesContractStatementsandConductoftheParties:Thecourtmaylooktothe“subjective”intentofaparty.(Whatthepartywasactuallythinkingatthetime).Thisisdifferentfromthecommonlawviewthatonlythe‘objectiveintent’matters.‘SubjectiveIntent’maybeusedonlywhentheotherpartyeitherknewwhatthefirstpartymeantorHadtobeawareofwhattheymeant.ObjectiveIntentwillbeusedwhenitisunclearwhatthepartywasactuallythinking.ObjectiveIntentisdeterminedfromstatementsandotherconductasareasonablepersonwouldunderstandthemunderthesamecircumstances.InterpretationofSalesContractsNegotiations•TheCISGcallsforthecourttoconsiderallrelevantcircumstancesincludingthenegotiationsleadinguptothecontract,thepracticestheyhavedevelopedbetweenthemselvesandtheconductafterthesigningofthecontractininterpretingwhatthecontractmeans•Thistooisdifferentfromthecommonlaw“paroleevidencerule’”wherethecourtmayonlylooktothewrittendocumenttodeterminewhatwasmeantInterpretationofSalesContractsCISGbindsthepartiesbyanypracticestheyhaveestablishedbetweenthemselvesByanyusagestheyhaveagreeduponorwhichtheyknoworoughttohaveknown.ByanyusagewhichinInternationalTradeiswidelyknownandobservedintheparticulartrade.InterpretationofSalesContract.FormoftheContract•CISGprovidesthatthecontractdoesnothavetobeinwritingorinanyparticularform.•EXCEPTION:WhenacountryratifiestheCISGitcanrequirethatcontractsinvolvingacompanythathasaplaceofbusinesswithintheboundariesofthatcountrymustbeinwriting.FormationofSalesContractTheOffer•DefiniteProposalGoodsmustbedescribedsufficientlysoeveryoneknowswhatisbeingofferedMuststatequantityOtherelements,includingpricecanbeimpliedfromconductorsimilarcontractsusedinthetrade•ToSpecificPersonsMaynotbemadetothepublicatlargeAnoffertothepublicatlargeisonlyaninvitationtomakeanofferForma