The United Nations Vienna Convention on Contracts for the International Sale of Goods is an international treaty governing commercial transactions between parties from different countries. This convention, also known as the CISG, was adopted in 1980 and has since been ratified by over 90 countries, making it one of the most widely accepted international trade agreements.
The CISG provides a framework for the formation of contracts, the obligations of the parties, and the remedies available in case of a breach. It applies to contracts for the sale of goods between parties whose places of business are in different countries, provided that both countries are signatories to the convention.
One of the key aspects of the CISG is its recognition and promotion of the principle of freedom of contract. This means that parties are generally free to negotiate and agree on the terms of their contract without interference from the law. However, the convention also sets out default rules that apply in the absence of explicit agreement between the parties.
Under the CISG, a contract is formed when there is an offer and acceptance of that offer. The offer may be made in any form, including through conduct or even silence, as long as it indicates the intention to enter into a contract. The acceptance must be clear and unambiguous, and can be made in any manner that is consistent with the offer.
Once a contract is formed, the parties have certain obligations towards each other. For example, the seller must deliver the goods and transfer ownership to the buyer, while the buyer must pay the price and accept the goods. The CISG sets out specific rules for each of these obligations, including the time and place of delivery, the quality of the goods, and the remedies available in case of breach.
If there is a dispute between the parties, the CISG provides for a range of remedies that are aimed at preserving the commercial relationship between them. These include specific performance, which requires the party in breach to perform their obligation under the contract, as well as damages, which aim to compensate the other party for the losses suffered as a result of the breach.
Overall, the United Nations Vienna Convention on Contracts for the International Sale of Goods is an important tool for businesses engaged in international trade. It provides a clear and consistent framework for commercial transactions, while also promoting the principle of freedom of contract and the preservation of commercial relationships. As such, it is a key component of the global economic system.