Chapter 1: International Law Flashcards
What is a ‘choice of laws’?
Parties that enter into cross border contracts may agree in advance which country’s
laws will apply. Alternatively, the United Nations (UN) and the International Chamber of Commerce (ICC) have created rules of their own which parties can choose to use.
What does UNCISG stand for?
UN Convention on Contracts for the International Sale of Goods
What is UNCISG?
The UNCISG sets out rules of contract law which parties in different countries can
choose to apply.
When does the UNCISG apply?
The UNCISG applies only to the commercial sale of goods where the buyer and
seller of the goods have their places of business in different countries.
For what types of sale does the UNCISG not apply?
where the supply of labour is a major part of the contract
Where the buyer provides most of the materials for the goods
Where the goods are bought for personal or household use
Where the goods are sold by auction
Where the sale relates to certain specific restricted products such as electricity,
aircrafts and investments.
What are the obligations of the buyer (UNCISG)?
To pay the price for the goods and comply with any formalities to enable payments to be made.
What are the obligations of the seller (UNCISG)?
Deliver at agreed time.
If location is not stated, to follow the rules in the convention.
If time is not stated, to deliver within a reasonable time of the contract being formed.
Deliver quantity, quality and description set and packaged in the agreed manner.
If quantity, quality and packaging are not set out then follow conformity requirements in convention.
Where the carriage of goods is included when does the risk of loss or damage to the goods being sold pass from seller to buyer?
Risk passes at the place indicated in the contract.
If not specified in the contract the risk passes when the goods are transferred to the first carrier for transmission to the buyer.
Where the carriage of goods is not included when does the risk of loss or damage to the goods being sold pass from seller to buyer?
The risk passes at the time and place where the buyer takes over the goods or the goods are placed at their disposal.
Where goods are sold in transit when does the risk of loss or damage to the goods being sold pass from seller to buyer?
The risk passes at the moment when the contract is concluded, even if the goods are still in transit.
what does ICC stand for?
The International Chamber of Commerce
What are ICC Incoterms?
The ICC has set out standard terms of trade (Incoterms), which parties can use in cross border contracts. The terms set out rules in connection with paying for things such as delivery, import and export duties, insurance and freight costs.
What are 2 examples of Incoterms with regard to the transportation of goods?
One which imposes the minimum obligations on the seller (‘ex-works’ i.e. seller only makes the goods available for collection by the buyer).
A term which imposes the maximum obligations on the seller (‘delivered duty paid’ i.e. the goods are delivered to a place chosen by the buyer with all delivery costs paid).
