In commercial transactions, it is entirely natural for parties located in different countries to enter into contracts for the sale of goods. However, when preparing and negotiating such agreements, parties often focus solely on the legal regulations applicable in their own jurisdiction. In doing so, they may overlook the relevance of international legal norms that can have direct application and significantly impact the legal assessment of their contractual relationship.
One such instrument is the United Nations Convention on Contracts for the International Sale of Goods (CISG), also known as the Vienna Convention. This Convention sets out uniform private law rules governing international contracts for the sale of goods.
According to Article 1(1) of the CISG, the Convention applies to contracts for the sale of goods between parties whose places of business are in different states:
a) if both states are Contracting States (i.e. have ratified the Convention), or
b) if the rules of private international law lead to the application of the law of a Contracting State.
The CISG may apply directly, even if the parties have not expressly referred to it in their contract. It is important to note that the Convention governs only the formation of the contract and the rights and obligations of the parties—not issues such as property rights or contract validity under domestic law.
For further information or professional legal assistance with international sales contracts, we encourage you to contact our Law Firm.