CISG, sometimes known as the Vienna Convention, is a multilateral treaty aimed at establishing a uniform framework for international commerce. The treaty is ratified by 95 countries and represents two-thirds of world trade.
Exemption of liability for damages
CISG is a set of laws regulating international sales of goods. It is an amalgamation of civil and common law principles. CISG applies to all types of claims, including contracts, property, and torts. It also provides a framework for recovery from economic loss. It does not cover damages for mental distress, pain, and suffering.
As a rule, limitation clauses are governed by good faith, reasonableness, and public policy. They are enforceable across civil law jurisdictions. Nevertheless, some atypical clauses raise contentious issues. This note will examine some of these.
In some jurisprudence, a court may determine that an atypical clause should be enforced even if it is incompatible with a contract. In other cases, the court might defer to the applicable domestic law.
Atypical clauses are generally enforceable across common law jurisdictions, but the underlying premise of full compensation is subject to disagreement. Some courts believe that a party should be compensated at the location where the obligation was breached, while others insist that damages should be paid in the party’s own currency.
CISG-AC opinion on price adjustment clauses
CISG-AC Opinion No. 7 (2007), examines whether the Belgian Supreme Court erred in applying CISG Articles 79 and 7. In a case involving a dispute over the seller’s ability to resell glycerine for a lower price than the contract price, the court ruled that the buyer was entitled to renegotiate the contract, but was unable to require the seller to provide substitute goods for nonconformity.
The CISG is a treaty of the United Nations that is intended to regulate the international sale of goods. Its goal is to bring together the various legal regimes governing contracts for the sale of goods into one common framework. Unlike the UCC, the CISG is intended to apply in domestic and foreign sales of goods.
The CISG provides a comprehensive framework for the recovery of economic loss. Its provisions set out the minimum requirements for a party to claim damages. Moreover, the obligor is liable for all losses resulting from non-performance. Similarly, the obligee is entitled to a sum equal to any loss resulting from a breach of the contract.
