LOG305 International Trade Law

Question A

Provision of CISG Relevant to the Case

The purpose of United nations conventions upon the contracts for the international convention for the sale of Goods is created to provide modern, fair and a uniform regime for the contract of sale and purchase of goods within countries or internationally. CISG is a guideline that significantly contributes in introducing the commercial exchange and reduced transaction costs(United Nations Convention on Contracts for the International Sale of Goods, 2021)

Relevancy of the Case

The convention is a backbone of the contracts of international trade of several countries, keeping aside their individual laws and regulations governing the laws of contract. CISG is therefore considered as one of the most important conventions of international trade law. The adoption of this convention has enabled a uniformed, fair and modern legislation to deal with international and transnational contracts of sale of goods among parties of different places of different countries.

In cases of contracts of companies from different nations, the laws given by this convention directly applies. The CISG may refer to an international sale contract of goods, regardless of whether the place of business is in a Contracting State, where the rules of the international private law point towards the law of a Contracting State, as applicable or by way of the preference of their contracting parties. In this latter case, the CISG offers a neutral body of laws that, due to its transnational existence and the vast availability as regard to the interpretative resources, can be readily adopted.

This convention will be applicable in this case as well as the companies involve in this contract are from different nations (company A from Singapore and company B from Britain) and the contract as an expressed condition to be governed by the international law and not the individual laws of the country. As this legislation applies to the virtue of the parties and the contract clearly expresses so. CISG deals with the matters related to the validity, enforceability and effect of the contract of the property sold or purchased including the obligations of the party bound in the contract.

Question B

For deciding the obligation of the party B to deliver 30000 new books to the company A, there are certain exemption of contract given by the international law governing contract shall be discussed. Article 79 of the CISG provides with the guidelines for the exemption as well as restriction of the parties limited their exiting liability towards the other party.

This case is an inclusion in the article 79(1) of the CISG convention where the performance of the damages by the party is not possible because of the Covid19 pandemic. Article 79(1) provides for Article 79(1) provides for certain criteria for a party to be exempt from liability for damages: (1) as an impediment to contract performance has arisen; (2) the non-performance of the party was caused by the impediment; (3) the impediment was beyond the party claiming the exemption's control (Khan, 2021).

Concluding this Company B is not entitled to deliver 30000 new books to company B and can take exemption within the purview of article 79 of the CISG provisions, yet Company A can demand and challenge the damage after the end of covid19 pandemic.

References

Uncitral.un.org. 2021. United Nations Convention On Contracts For The International Sale Of Goods (Vienna, 1980) (CISG) | United Nations Commission On International Trade Law. [online] Available at: <https://uncitral.un.org/en/texts/salegoods/conventions/sale_of_goods/cisg>

Khan, I., 2021. COVID-19 Exemptions For Sellers/Exporters Under The UN Convention On Contracts For The International Sale Of Goods (CISG). [online] Jurist.org. Available at: <https://www.jurist.org/commentary/2020/05/israr-khan-cisg-covid19/>

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