Matters which are applicable and not applicable with the United Nations Convention for Contracts on the International Sale of Goods (CISG)..

1. United Nations Convention for Contracts on the
International Sale of Goods (CISG)
Matters which are applicable or concern with this Convention?
Articles 1 and 4 of the United Nations Convention for Contracts on the International
Sale of Goods (CISG) provides that the matters which are concern with the Convention.
Under Article 1 of the said Convention, this convention applies to contracts of sale of
goods between the parties whose place of business are in different states. Under the
fulfillment of the following conditions the Convention shall be applicable:
(a) Where the states are contacting state; and
(b)Where the rule of Public International Law leads to the application of the law of
contracting state.
Article 4 provides that the Formulation of the Contract of Sale and the Rights and
Liabilities of the Seller and Buyer, arising from such a contract.
Matters which are not applicable or concern with this Convention?
The provisions of the matters which are not applicable or concern with this Convention
is referred to Articles 2, 3 and 5 of the United Nations Convention for Contracts on
the International Sale of Goods (CISG).
Under Article 2 of the above convention, following matters are not concern or
applicable with this convention:
(i) Goods which are brought for personal, family or household use;
(ii) Goods which are brought or sale by auction;
(iii) On execution or otherwise by the exercise of law for the time being in force;
(iv) Stocks, shares, investment securities, negotiable instruments, etc.;
(v) Ship, vessels, aircraft, etc.; and
(vi) Electricity.
Article 3 provides that the contracts for the supply of the goods to be manufactured or
produced by the seller. It shall be opposed to this convention, if above mentioned have
done by the buyer.
It also provides that this convention does not apply to contracts, where the obligations of
the party, who furnishes the goods consists in the supply of labor or other service.
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Article 5 also provides that the matter which does not apply to this convention. Under the
said Article, this convention does not apply to the liability of the seller for death or
personal injury caused by the goods to any person.
On the other hand, the provisions of Article 4 of this convention also provides that
the following matters does not apply to the convention:
(a) The validity of the contract, or any of its provision, or of any usage; and
(b)The effect which the contract may have on the properly in the goods sold.
Divisions of this Convention
The United Nations Convention for Contracts on the International Sale of Goods
(CISG) was divided into four parts:
✓ Part I deals with the scope of application of the Convention and the general
provisions.
✓ Part II contains the rules governing the formulation of contracts for the
International Sale of Goods.
✓ Part III contains the substantive rules for the sales contract (obligations and rights
of the parties)
✓ Part IV contains the final provisions…
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