Posted: January 26th, 2023

Challenges faced by parties involved in contracts related to the International Sale of Goods (CISG) when the Vienna Convention is applied

Challenges faced by parties involved in contracts related to the International Sale of Goods (CISG) when the Vienna Convention is applied.
Introduction:
The United Nations Convention on Contracts for the International Sale of Goods (CISG) was adopted in 1980 as a way to provide uniform legal rules for international sales contracts. Despite its wide adoption, the application of the CISG can still present challenges for parties involved in contracts related to the International Sale of Goods. This essay will explore the challenges faced by parties when the CISG is applied, and suggest ways to mitigate these challenges.

Challenges in Determining Jurisdiction:
One of the first challenges faced by parties in contracts related to the International Sale of Goods is determining which jurisdiction should apply the CISG. This can be particularly difficult in cases where the parties are from different countries, and each country has its own set of laws and regulations.

Conflicting laws:
In some cases, the laws of the parties’ respective countries may conflict with the CISG, making it difficult to determine which law should apply. For example, a country may have a law that contradicts the CISG’s provisions on the formation of contracts, making it unclear which law should be followed.

Difficulty in choosing a forum:
Another challenge is choosing a forum in which to resolve disputes. Parties may have conflicting interests and prefer different forums, making it difficult to agree on a venue that is acceptable to both parties.

Challenges in Interpretation and Application of the CISG:
The CISG provides a uniform legal framework for international sales contracts, but it can still present challenges for parties in terms of interpretation and application.

Lack of uniformity:
Although the CISG provides a uniform framework for international sales contracts, its provisions can be open to interpretation. This can lead to inconsistent application of the CISG by different courts, making it difficult for parties to predict the outcome of disputes.

Unfamiliarity with the CISG:
Parties may be unfamiliar with the CISG and its provisions, leading to misunderstandings and disputes. This can be particularly problematic in cases where one party is from a country that is not a party to the CISG, and is not familiar with its provisions.

Challenges in Enforcing CISG Provisions:
Enforcing the provisions of the CISG can also present challenges for parties involved in contracts related to the International Sale of Goods.

Lack of enforcement mechanisms:
In some cases, there may be no effective enforcement mechanisms in place for the CISG, making it difficult for parties to enforce their rights under the treaty.

Difficulty in obtaining damages:
Obtaining damages for breaches of the CISG can also be difficult, particularly in cases where the party that has suffered the breach is located in a different jurisdiction from the breaching party.

The CISG presents a number of challenges for parties involved in contracts related to the International Sale of Goods. These challenges include determining jurisdiction, interpreting and applying the CISG, and enforcing its provisions. To mitigate these challenges, it is important for parties to seek professional advice and familiarize themselves with the CISG’s provisions. Additionally, parties should consider including provisions in their contracts that address the challenges posed by the CISG, such as specifying which law should apply, choosing a venue for resolving disputes, and setting out the enforcement mechanisms for the CISG’s provisions.

Bibliography:
Schwenzer, I., & Flechtner, H. (2012). Commentary on the UN Convention on the International Sale of Goods (CISG). Oxford University Press.
Brunner, C. (2011). The UN Convention on Contracts for the International Sale of Goods (CISG) and International Business Transactions. Oxford University Press.

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