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The essential touchstone for such an assess- ment ought to be whether contracting parties, dealing with international trade, actually is using the Convention as governing law on their international sales contracts. However, the Convention is designed to work as a legal framework for commercial parties, operating on the international market, why the main concern should be whether the Con- vention is to be regarded as an equivalent success also from the view of consulting lawyers and business engaged in international trade. 4 The success is hence fairly clear on a state level. 3 The Convention has had great influence on the laws of transnational commerce on both an international and a domestic level, and it has served as a source of inspiration for amend- ments on national sales law and for the development of other international sales regimes. 2 The CISG is by many described as a success and it has been argued to be “the most successful international document so far”. 1 The aim with a uniform convention is to promote the development of international trade and contribute to the removal of legal barriers. The CISG developed in order to provide a uniform legal regime for international sales con- tracts. 32Ħ.7 Differences Depending on Legal Tradition. 30Ħ.6 No Concern Over the Law Governing the Contract. 26Ħ.5 Standard Form Contracts and Standard Terms. 15Ħ Relevant Factors When Excluding the CISG. 15Ĥ.2 Uniform Application by the National Courts. 12Ĥ Problems with the Application of the CISG. 10ģ.4 The Rights and Obligations of the Contracting Parts. (3)ģ The Structure and the Application of the CISG. These problems affect the Conven- tion’s ability to provide potential users with legal certainty and predictability, which in turn may affect the familiarity with the Convention and hence have an impact on an exclusion of the CISG. Moreover, the Convention is associated with prob- lems regarding a non-uniform interpretation of the Convention’s provisions within the na- tional courts and arbitral tribunals, as well as regarding its incompleteness, meaning that there are gaps that need to be filled by national law. Regarding unfamiliarity, the importance given to the Convention in law faculties within the signatory states, together with time and costs attributed to a familiarization pro- cess, seems to play an important role. The factors can be referred to as unfamiliarity, time and costs, negotiation strength and standard form contracts or standard terms. By studying surveys and academic writings, certain factors can be derived as reasons prior to an exclusion of the CISG. As of today, more than 25 years after the CISG came into force, the Convention is commonly being excluded as the governing law of in- ternational sales contracts.
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The CISG is automatically applied to international sale contracts in cer- tain given situations but the contracting parties are free to exclude the Convention as appli- cable law in favour of another regulation. The Convention was signed in Vienna 1980 and came into force in 1988 after securing the necessary num- ber of ratifications. The development started because of a belief that a uniform international sales convention would contribute certainty in com- mercial trade and decrease transaction costs for the contracting parties. The development of the United Nation’s Convention on Contracts for the International Sale of Goods (CISG) started at the beginning of the 20th century in order to provide a uniform legal regime for international sales contracts. Subject terms: International Contract Law, International Trade, The United Na- tion’s Convention on Contracts for the International Sale of Goods, The CISG, Unification of Sales Law, Exclusion, Opt-out, Choice of Law Title: The United Nation’s Convention of Sale of Goods – Why is it beingĮxcluded from International Sales Contracts? Master’s Thesis in Commercial Law and Tax Law (International Contract Law)