A half century ago in the United States , it became clear that modern commercial practices required a modern commercial law. Thus, in the early 1950s The American Law Institute, in ajoint project with the National Conference of Commissioners on Uniform State Laws, drafted the first version of the Uniform Commercial Code ("UCC") and published it in 1952. Considered to be one ofthe most important legislative measures in the history of US commerce, the UCC has been adopted by every state except Louisiana . It is a unified, comprehensive set of laws that encompasses all domesticbusinesses transactions.
But international trade has increased substantially and the need for uniformity in the law governing, not only domestic transactions, but also international sales of goods,has become critical. The Convention on Contracts for the International Sale of Goods respond to this demand and has been signed in 1980 at Vienna. After decades of effort, the United NationsCommission on International Trade Law ("UNCITRAL") promoted the adoption of the CISG, which became the law in the US in 1988.
Today the CISG applies to 76 other nations as well, including most of the majortrading nations.
What follows is an analysis of both codes, an identification of the major differences that exist between them and to finish, we’ll present two different cases and advice which codeshoul be usen in court for each of them.
Applicability of the CISG
Unless the parties specifically indicate that it does not apply, the CISG will be the governing law pertaining to allcommercial contracts for the sale of goods between parties having their places of business in different countries which have adopted the CISG.
While the CISG does not apply to purely domestic transactions,its scope is quite significant. The UCC, however, applies to both consumer and commercial transactions, while the CISG specifically excludes consumer sales from its provisions. Also excluded from...