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The Convention on International Sales of Goods

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Added on  2021-06-18

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Applicability of Convention on International Sales of Goods 3 International Business Law Applicability of Convention on International Sales of Goods Name of the University Introduction The Convention on International Sales of Goods (the Convention) has increasingly become globalized in terms of its application. It also evaluates the extent of its application, the rules on the passage of risk and delivery and how they apply to the instant transaction between Prime Productions Limited and Felicia Frenzy Pty Limited. 2d 1142, the court noted that the Convention governs

The Convention on International Sales of Goods

   Added on 2021-06-18

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Applicability of Convention on International Sales of Goods 1International Business LawApplicability of Convention on International Sales of GoodsName of the University
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Applicability of Convention on International Sales of Goods 2IntroductionThe Convention on International Sales of Goods (the Convention) has increasinglybecome globalized in terms of its application. This essay discusses the requirements and theextent of its application. It also evaluates the extent of its application, the rules on the passageof risk and delivery and how they apply to the instant transaction between Prime ProductionsLimited and Frenzy Pty Limited. It further evaluates the remedies that can be claimed shouldthere be a breach of the obligations. The Convention brings uniformity to internationalbusiness contracts and parties can still vary it using written agreements and to provide forprotective soft law measures. 1.Application of the ConventionIssuesThe issue is whether the 7 x 3 cameras, 20 HD Microphones, and the 4 camera mountscan be classified as goods. Secondly, the other issue is whether there was a contract createdby the emails. The third issue is whether the Convention can ultimately govern therelationship between Frenzy Pty Ltd and the Prime Productions.RuleThe major law which applies is article 1(a) of the Convention which provides for theprovides for the applicability of the Convention. The Convention applies when contracts forthe sale of goods are between different places of business in two or more contracting states(Romberg, 2011, p, 629). Article 2 provides that the Convention is inapplicable to personalgoods, or an auction, electricity, stock, and shares or goods bought in the execution of publicauthorization (Sarcebvic & Volken, 2009, 271). In the Asante Technologies, Inc. v. PMC-Sierra, INC. INC. 164 F. Supp. 2d 1142,the court noted that the Convention governs the
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Applicability of Convention on International Sales of Goods 3substantive provisions of international sales contracts for the sale of goods whose partiesoperate from places of business in different states that are contracting parties to theConvention (Huber, 2008, p, 408). ApplicationIn the instant case, the Frenzy Limited is a based in the United States. The PrimeProductions Pty Limited is based in Australia. Both the United States and Australia arecontracting parties since they are signatories to the Convention. The places of business for thePrime Productions and Frenzy were in Queensland, Australia and United States respectively.Also, it is notable that the cameras, camera mounts, and the microphones do not fall withinthe exception of goods listed under article 2 of the Convention. Further, communicationbetween Mark and Felicia were based on emails only. Today’s marketplace globally has beenbased on email exchanges between different countries. So long as the emails can be deemed acontract, the Convention shall apply because it has no specific requirement for a contract tobe formal (Ramberg, 2011, p, 216). 2. Application of the Convention to Contract with Movie Equipment Pty Ltd. The IssueThe requirement raises the issue of whether the Convention applies to contractsinvolving the United Kingdom as a place of business. RuleThe applicable law is article 1(a) of the Convention which provides that the Conventionapplies to the contracts for the sale of goods that is arrived between parties who operatebusiness in two or more contracting states. Also, Article 1(3) of the Convention provides that
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Applicability of Convention on International Sales of Goods 4the nationality of parties and the commercial character is not a determining factor in theapplicability of the Convention (Huber & Mullis, 2011, p, 408).ApplicationCurrently, the United Kingdom is a major contracting party to the Convention.Australia is a contracting party to the Convention (Gabriel, 2009, p, 455). The two states arecontracting states as under the provisions of article 1(a) of the Convention. Neither thedifference in the nationality of the company as a corporate person and the commercialcharacter between the United States and the United Kingdom will affect the applicability ofthe Convention to the said direct contract. ConclusionA direct contract between Prime Productions which is based in Australia and a UnitedKingdom based firm would still be governed by the Convention. 3. DAT IssuesThe first issue is what is meant by DAT term. The other issue is whether DAT termapplies to the contract between Mark and Felicia.RulesIncoterm Rules of 2010 provides for the D-terms that are used in internationalcommercial transactions. The DAT term according to the Rules means Delivery at Terminal.Under the DAT, goods are delivered by the seller when the seller places them at a terminaland unloading them. The terminal as used in the DAT term means place, road or cargoterminal.
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