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International Trade Law Research Paper 2022

   

Added on  2022-10-12

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Running head: INTERNATIONAL TRADE LAW
International Trade Law
Name of the Student
Name of the University
Author Note
International Trade Law Research Paper 2022_1

INTERNATIONAL TRADE LAW1
Introduction
The abidance of the obligations arising out of the contract is a general principle that the
buyer or a seller has an obligation to ensure in any form of contract. Hence, it can be
construed that both the seller and the buyer are under an obligation to carry out their
contractual duties. Any breach of such contractual duties would lead to a breach of the
contract1. For instance, there may be of failure on the part of the seller in making delivery of
the good sold to the buyer on time for the purpose of complying with the standards that has
been previously determined in the agreement effecting the sale. Again, there are certain
instances where the buyer makes a default in in making payment with respect to the cost of
the goods2. This is the general rule for the law of contract that any discrepancy that might
arise with respect to the performance of the contract on the part of any of the parties, the
same would result in the right being created for the aggrieved party to claim damages as well
as remedies from the other party whose contractual breach has resulted in such an injury. All
the contracts that have been created between two parties for effecting a sale in relation to
goods will be governed by the terms of the contract entered upon3. All the obligations,
remedies and other conditions relating to the contract are required to be carried out as per the
conditions provided in the contract. However, there are certain cases, where the contract fails
to cover all the aspect regarding the obligations remedies and other conditions that are
required to be complied with while performing the contract. These instances crops up, when
the parties to the contract fails determine all the rights and duties that they have been agreeing
to undertake under the contract at the time of instituting the contract. In such cases, the rights
and obligations arising out of the contract in a particular sale of goods need to be governed by
1 Knapp, Charles L., Nathan M. Crystal, and Harry G. Prince. Problems in Contract Law: cases and materials.
Aspen Publishers, 2019.
2 Stone, Richard, and James Devenney. The modern law of contract. Routledge, 2017.
3 Lookofsky, Joseph. Understanding the CISG:(Worldwide) Edition. Kluwer Law International BV, 2017.
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INTERNATIONAL TRADE LAW2
the law of contract4. The remedies that are ensured to a buyer of goods in relation to the
breach that has been caused by the seller in a contract for sale of goods may vary with respect
to the jurisdiction followed. The remedies provided for the breach of contract in a sale of
goods agreement are more elaborately stated in the UN Convention on Contract for the
International Sale of Goods (CSIG) when contrasted with the Sale of Goods Act 1979 (SGA)
under the English law. In case of CSIG, the scope of remedies provided to a buyer is wider
and me include additional time, specific performance as well as reduction in the price. Again,
the remedies that are available to all buyer under the SGA, are limited and extend only up to
termination as well as damages5.
This paper will strive to analyse the remedies that are available to a buyer under the CISG.
It will also strive to analyse the remedies that are available to a buyer under the contract for
sale of goods as per the provisions of SGA. This paper would differentiate between the
remedies available under both the legislations in relation to the sale of goods.
Discussion
The CSIG has a crucial role in the international trade. Several jurisdictions has ratified this
convention for being applied in the international seals of these jurisdictions. The laws
prevailing in England and Wales in relation to the international sale of goods has been
governed by the SGA as well as the common law. In various instances, there has been a
proposal presented for the purpose of ratification of CSIG into the jurisdiction of England and
Wales. However, the two laws offer very different approaches in relation to the remedies that
are available under the international sale of goods. Both the jurisdictions have separate
approaches in relation to the specific performance, repudiation of the contract, price reduction
4 Lookofsky, Joseph. Understanding the CISG:(Worldwide) Edition. Kluwer Law International BV, 2017.
5 Gillette, Clayton P., and Steven D. Walt. The UN Convention on contracts for the international sale of goods:
theory and practice. Cambridge University Press, 2016.
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INTERNATIONAL TRADE LAW3
as well as the right relating to cure6. For this purpose, the first remedy that can be discussed
upon based on both the regimes is the specific performance right that has been conferred
upon a buyer whose rights in relation to a contract for sale of goods has been infringed upon.
In discussing the same, the chief concern is the usefulness of the specific performance
remedy provided by the CSIG in comparison to the same remedy provided by the SGA.
Article 46 of the CSIG, provides for the remedy available to a buyer in the form of specific
performance in case of any breach of the contractual obligations in relation to the
international agreement for sale of goods7. Under this article, the buyer is justified in
requiring performance from the seller in relation to his contractual obligations. However, this
remedy will not be available to the buyer is he has been visited to any e remedy which does
not seems to be consistent with the requirement of this article. In the event of the goods
supplied by the seller not matching with the descriptions of the contract for the sale of goods,
the buyer has the option of compelling the seller to deliver substitute goods. However, such a
right would only be available to the buyer, if the goods that has been delivered contains
inadequacies or defects that has the probability of defeating the mean objective of the
contract for the sale of goods8. In such a case, the buyer has the right to issue a notice
requesting the substitution of the goods. This notice can be issued in compliance with the
requirement provided under article 39. Such a notice needs to be issued within a time, which
appears to be reasonable. The buyer has also the option of claiming repair to be done upon
the goods, in case of the goods being deviant from the description that has been mentioned in
the agreement for effecting the sale of the goods. However, this remedy will only be available
to a buyer if it can be ensured that such a remedy would be reasonable based on the
6 Janssen, André, and Navin G. Ahuja. "Bridging the gap: The CISG as a Successful Legal Hybrid between
Common Law and Civil Law?." Uniform Rules for European Contract Law?: A Critical Assessment. Hart
Publishing, 2018. 137-162.
7 Wu, Xiyuan. "The Mitigation Rule and Impacts of Overdue Payments in International Business." (2018).
8 Mai, Nan Kham. Exclusion and Limitation of Liability for Non-conformity of Goods: A Comparative Study on
CISG, UCC and UK Law. Diss. Niigata University, 2017.
International Trade Law Research Paper 2022_4

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