The United Nations Convention on Contracts for the International Sale of Goods, more commonly known as the CISG, is an international treaty that governs the sale of goods between parties located in different countries. The CISG applies to contracts for the sale of goods, but not to contracts for services or intellectual property rights.
The CISG applies to contracts between parties whose places of business are located in different countries that have ratified the treaty. At present, 93 countries are signatories to the CISG, including the United States, China, Germany, and Russia.
It is important to note that the CISG applies only to contracts where both the buyer and the seller are from countries that have ratified the treaty. If one party is from a non-signatory country, the CISG does not apply.
Additionally, the CISG only applies to contracts for the sale of goods, which are defined as tangible items that can be moved, such as clothing, machinery, and foodstuffs. The CISG does not apply to contracts for services, such as consulting or legal services.
The CISG also sets out rules on the formation of contracts, the obligations of the parties, and remedies for breach of contract. It is important to note that the CISG allows parties to tailor their agreements to some extent, but any modifications must be agreed upon by both parties.
If there is a dispute between parties that have agreed to the CISG, the treaty provides for the resolution of disputes through arbitration or by going to court. If the dispute is resolved through arbitration, the parties can choose the arbitration rules and procedures that will apply.
In conclusion, the United Nations Convention on Contracts for the International Sale of Goods applies to contracts for the sale of goods between parties whose places of business are located in different countries that have ratified the treaty. It does not apply to contracts for services or intellectual property rights. If you are involved in international sales of goods, it is important to be familiar with the CISG and its provisions.
