International Trade Law: United Nations Convention on Contract for International Sale of Goods

Running Head: INTERNATIONAL TRADE LAW
INTERNATIONAL TRADE LAW
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Author Note

1INTERNATIONAL TRADE LAW
Question 2a
The primary purpose of the United Nations Convention on Contract for International Sale of
goods is to provide the guidelines to the exporters regarding the choice of law to avoid issues of
conflict arising out of any contract of international sale of goods. The aforementioned treaty had
been ratified by 89states. This treaty had been drafted for the purpose of establishing a uniform
code of International sales law. This treaty provides the rules which are relied upon by
arbitrators, contracting parties and the courts for the purpose of solving disputes arising out of
contract of International sale of goods. It is to be mentioned that the United Nations Convention
on Contract for sale of international goods is deemed to govern the terms of a contract involving
the sale of goods by two different states when an express term of the contract between the parties
does not prohibit the same. The parties to the contract can also choose to exclude the
incorporation of the provisions of the aforementioned convention. However, it can be stated that
the aforementioned convention is applicable in contracts in which the parties to the contract
belong to two different states and such states are contracting states. However, the
aforementioned convention is only applicable in contracts which involves sale of Commercial
products and Goods only. The provisions as provided in the convention are also applicable in
contracts in which the one of the contracting parties belongs to a non contracting state, however
if there is a conflict, the law of the contracting state will prevail. The aforementioned convention
cannot be applicable to contracts which involve sale of personal, household, family and
intangible goods.

2INTERNATIONAL TRADE LAW
Question 2b
Issue
The issue that has been identified in the given scenario is that whether the aforementioned
convention would apply to the contract that had been formed between the Company BigMi and
the supplier based in California.
It has been provided through the facts of the given case study that New York Branch of the
company Big Mi had entered into the contract with the supplier based in California. It can be
stated that the aforementioned convention only applies to contracts formed between parties in
which the parties are from different states as provided in Article 1 of the convention.
However it has been provided in the case study that the company BigMi has its headquarters in
the People ’s Republic of China. Further it can be stated that that the branch of Big Mi in New
York has a legal representative and is only entitled to enter into contracts in the name of the
company. However, such branch cannot be held liable for the debts incurred by the company.
The parent company would be liable for all the debts and the creditors can sue the parent
company which is located in the People’s Republic in China.
Further it can be stated that the contract that had been entered in to by BigMi’s branch located in
the New York clearly specified in its terms that the goods are to be delivered to the headquarters
of the company which is located in the People’s Republic of China. The New York Branch
would only be liable for the payment.
Thus, it can be stated that the United Nations Convention on Contract for International Sale of
goods would be applicable in the given case study as the contract had been formed between the