International Law for Contract for International Sale of Good

Question: Discuss about theInternational Law for Contract for International Sale of Good. Answer: The United Nation Convention on Contract for International Sale of Goods is an international Treaty which has been ratified by 89 States. The treaty had been entered up on into for the purpose of establishing uniform International sales law. This treaty is also often referred to as the Vienna Convention. The primary purpose of the Treaty is to make arrangements for exporters in order to help them avoid issues in relation to choice of law. Through this treaty accepted substantial rules are provided which may be relied upon by the courts, arbitrators and contracting parties to resolve contractual issues. Where an Express term of a contract does not prohibit the incorporation of the Treaty it is deemed to be present in relation to contract between parties belonging to the member states of the Treaty. The application of the Treaty is done in relation to contract for sale of goods between those parties who operate in different states and the states are contracting states. The provisions o f the Treaty is also applicable in situation where one of the parties to the contract belong to a non contracting state and the conflict of law rules provides that the law of the contracting state would be applicable. The application of the Treaty is done in relation to Commercial products and goods only. In the light of certain exceptions the application of the Treaty cannot be done in relation to household, family or personal goods along with aircrafts, ships and intangible services. The parties to the contract have the right of excluding the incorporation of the Treaty into the contract. The Treaty is considered to be as the backbone of all countries international trade. Identified issue In the given situation the contract which has taken place between BigMi and the seller is between the contracting states of the convention. This is because the BigMi Company belongs to China who is a member of the convention and the seller belongs to the United States of America who is also a member of the convention. Thus as both the states from where the parties to the contract belong to the contracting states the provisions of CISG would be applicable. The issue which has been identified in the given situation is that the seller was supposed to receive a letter of credit as soon as the ship with the goods had been dispatched however BigMi has failed to provide the letter of credit to the seller as they were able to procure the goods at a less price. In the given situation the seller has been subjected to losses as it had to sell the goods at a lesser price and also include the cost of the charter. It has been provided through article 9 of the convention that any terms which have b een agreed by the parties between themselves are binding upon them. Therefore in the given situation as the letter of credit had not been provided to the seller when the goods were dispatched by the seller, BigMi have breached the contract with the seller. The primary issue is thus the breach of contract. In the given it has been provided that the contract which has been formed between Big Mi and the seller have same states party. This is because both New York as well as California belongs to a single state, which is the United States of America. It has been provided through the provisions of Article 1 of the CISG that the provisions of the convention would only be applicable where the parties belong to different states. Thus the as per the first interpretation the parties would not be applied with CISG as they belong to the other states. On the other hand it has been provided through the case study that the parent company of Big Mi is in China. In situation where the subsidiary company is liable a claim is made from the parent company. In the given situation where the contract had been breached as per Article 9 and 25 of the convention by the subsidiary company in New York the parent company would be liable. If this interpretation is taken then the application of article 1 in this situation can be done. It has been provided through the provisions of Article 1 of the CISG that the provisions of the convention would only be applicable where the parties belong to different states. Here China and USA are different states and the parties to the CISG. Thus the CISG would be applicable. References The United Nation Convention on Contract for International Sale of Good