Why is it that in some contracts for international business, it states that the United Nations Convention on Contracts for the International Sale of Goods (CISG) does not apply?
The United Nations Convention on Contracts for the International Sale of Goods (CISG) is a multilateral treaty to which the and fifty-six other countries are parties. The CISG covers the formation of contracts for the international sale of goods and the rights and obligations of parties to these sales contracts. Its coverage is limited to only sales contracts. The CISG is a self-executing treaty with the preemptive force of federal law.
For the commercial attorney knowledgeable about the domestic laws of his/her own country, the CISG may require the attorney to become familiar with foreign decisions in order to negotiate an international agreement. Take for example, the question of whether the prevailing party in a litigation should pay for attorneys’ fees incurred in the course of a dispute. In the , in the absence of a statutory or contractual provision to the contrary, each party to a dispute must bear his/her own attorneys’ fees. In civil law jurisdictions such as , the loser pay rule is the usual approach, and part of the procedural law such that the rule applies no matter what the substantive basis for the civil litigation. This was a point made in an article written by Harry Fletcher, a law professor at the
Thus, one reason why it is usual that contracts state the CISG does not apply is because when there is a conflict between the governing law of the contract and the CISG, the CISG may apply, which might require the discovery of unfamiliar foreign decisions.
.jpg)
Comment Preview