Cisg
The Impact of the CISG
International Business Transaction and CISG
What is CISG? CISG stands for Contracts on International Sale of Goods and it is a United Nation Convention. It was adopted in 1980 in Vienna convention as an international trade agreement. The main purpose of this convention was to eradicate any uncertainty, which was caused by distinct local laws, which concerned international trade. With the help of this agreement international trade became easy and hassle free. This convention is being applied in over two-thirds of the world countries. CISG is very simple to understand and United States approved it in 1988. This led to its approval in other countries as well. Domestic trade laws were overtaken by CISG. The companies located in countries where CISG is approved are bound by its principle even if their contracts don’t mention CISG. If the companies want few part of the law to be excluded from the contract, they have to mention in white and black in order to avoid any misunderstanding. Although there are many benefits of CISG but the basic advantage is that it is uniform in nature, which has made business transactions easier for the companies. Now the companies do not have to apply the party’s country law instead they can simply apple the CISG law and take benefit from it. This helps in building the trust among the countries too, which will open doors for more trade opportunities. The best thing about CISG is that its explanation of the articles is same in all the countries and that helps a lot in applying it. (Kunkel 2002)
European Perspective The CISG is the outcome of global effort to harmonize the international trade law and business transaction. It is very difficult for different countries to understand the party local laws. CISG has created a uniform platform for European countries so that they do uniform business and get advantage of it. Through CISG all countries have a neutral legal system, which does
International Business Transaction and CISG
What is CISG? CISG stands for Contracts on International Sale of Goods and it is a United Nation Convention. It was adopted in 1980 in Vienna convention as an international trade agreement. The main purpose of this convention was to eradicate any uncertainty, which was caused by distinct local laws, which concerned international trade. With the help of this agreement international trade became easy and hassle free. This convention is being applied in over two-thirds of the world countries. CISG is very simple to understand and United States approved it in 1988. This led to its approval in other countries as well. Domestic trade laws were overtaken by CISG. The companies located in countries where CISG is approved are bound by its principle even if their contracts don’t mention CISG. If the companies want few part of the law to be excluded from the contract, they have to mention in white and black in order to avoid any misunderstanding. Although there are many benefits of CISG but the basic advantage is that it is uniform in nature, which has made business transactions easier for the companies. Now the companies do not have to apply the party’s country law instead they can simply apple the CISG law and take benefit from it. This helps in building the trust among the countries too, which will open doors for more trade opportunities. The best thing about CISG is that its explanation of the articles is same in all the countries and that helps a lot in applying it. (Kunkel 2002)
European Perspective The CISG is the outcome of global effort to harmonize the international trade law and business transaction. It is very difficult for different countries to understand the party local laws. CISG has created a uniform platform for European countries so that they do uniform business and get advantage of it. Through CISG all countries have a neutral legal system, which does
References: Mullis 2007, The CISG: a new textbook for students and practitioners, sage publications, pp. 408 Pace International Law Review 2007, Review of the Convention on Contracts, sage publications, pp. 260 Lookofsky 2004, Understanding the CISG in the USA, sage publications, sage publications pp. 214 Lookofsky 2008, Understanding the CISG- sage publications pp. 243 Will 1995, CISG: the UN Convention on Contracts for the International Sale- sage publications pp. 299 DiMatteo 2005, International sales law: a critical analysis of CISG jurisprudence- sage publications pp. 241 Zeller 2007, CISG and the unification of international trade law, oxford university press, pp. 116 Kunkel 2002 The CISG, Harvard books, pp. 70