Part I - Sphere of application and general provisions Flashcards
Part 1, Chapter 1
Sphere of application, art. 1-6
Art. 1(1)(a)
The geographical scope.
Application conditions:
- Sale of goods contract
- Place of business in two different states
- Both states are contracting states
Art. 1(1)(b)
The substantive scope.
Application conditions:
- Sale of goods contract
- Place of business in two different states
- Private international law lead to application
Art. 1(2)
CISG does not apply when it was not known that the parties were from two different states, before or at the time of the conclusion of the contract.
Example: when buyer B placed in state D, discusses a contract with agent A placed in state D, who is working on behalf of seller S, placed in state C.
(Commentary Note 9 for art. 1)
Art. 1(3)
Things which are taken into consideration when determining application:
- Nationality of the parties
- Civil or commercial character of the parties
- Civil or commercial character of the contract
It is only the places of business.
Art. 2(a-f)
The CISG does not apply to:
(a) : sales of goods bought for personal, family or household use, including a good faith condition for the seller
(b) : auction
(c) : execution, by authority of law
(d) : sales of stocks, shares, investment securities, negotiable instruments or money
(e) : sales of ships, vessels, hovercraft or aircraft
(f) : sales of electricity
Art. 3(1)
Supply of goods to be manufactured or produced are sales, unless the buyer supplies a substantial part of the goods.
Art. 3(2)
The CISG does not cover sales, when the preponderant part of the sale is labour or other services.
Art. 4, main rule
Governs the formations of the contract of sale sand the rights and obligations of both the buyer and the seller, conducting such a contract.
Art. 4(a), exception
(Unless expressly provided in the convention it does not cover)
Validity of the contract, its provision and usage
Art. 4(b), exception
(Unless expressly provided in the convention it does not cover)
Passing of property in goods sold
Art. 5
Does not cover death or personal injury caused by the goods to any person
Art. 6
Possibility of excluding the application of the convention, or subject to art. 12 derogate from or vary the effect of provisions
Part 1, Chapter 2
General provisions
Art. 7(1)
Interpretation of the convention with regards to the international character, need to promote uniformity in application and observance of good faith
Art. 7(2)
Matters governed by the convention but not expressly settled, must be solved using general principles
OR
In absence of such principles, conformity with the law applicable by virtue of the rules of private international law.
Art. 8(1)
Interpretation according to the party’s intent, if the other party new or could not have been unaware of this intent
Art. 8(2)
If art. 8(1) is not applicable, interpretation must happen according to the understanding of a reasonable person of the same king
Art. 8(3)
To interpret intent or reasonable person we use:
- Negotiations,
- Practices between the parties,
- Usages and
- Subsequent conduct
Art. 9(1)
The parties are bound by usages and practices established between them
Art. 9(2)
Impliedly agree to a more widely observed usage in the branch of international trade, if
1) both parties knw or ought to have known AND
2) a practice widely known and regularly observed by parties to contract of the type involved in the specific trade
Art. 10(a)
If a party has more than one place of business, the place of business is that which has the closest relationship to the contract AND its performance,
having regard to the circumstances known to or contemplated bt the parties at any time before or at the conclusion of the contract
Art. 10(b)
if there is no place of business, reference is to be made to his habitual residence
Art. 11
A written conclusion nor in other form of the contract is necessary. A contract can be proved by any means.
Art. 12
Art. 11, 29 or part II of the convention will not be applicable in contracts with a party who has his place of business in a state with an art. 96 declaration.
Art. 13
Writing includes telegram and telex.
Modern interpretation: e-mail or any other electronic data exchange