Chapter 3 Formation of International Sales Contract.ppt

Formation of International Sales Contracts (CISG) Learning Objectives When you finish this chapter, you should be able to: Contents 1. Structure and Contents of the CISG 2. Application of the CISG 3. Formation of International Sales Contracts  1. Structure and Contents of the CISG United Nations Conventions on Contracts for the International Sales of Goods (CISG) 2. Application of the CISG Unless there is an express choice of law agreed otherwise in the contract, the CISG applies if: 1. The contract is for the commercial sale of goods; 2. The contract is between parties whose places of business are in different countries. 3. The places of business are located in countries that have ratified the CISG. The CISG is intended to apply to commercial goods and products only. With some limited exceptions, the CISG does not apply to domestic goods, nor does is apply to auctions, ships, aircrafts or intangibles and services. 3. Formation of International Sales Contracts 3.1 Enquiry An inquiry is made to seek a supply of products, service or information. Inquires should be specific and provide the necessary details to enable the receiver to answer the questions completely. Nevertheless, a seller can also initiate the negotiation by making an enquiry to a foreign buyer, including his intention of selling certain goods to the latter, which is also called an Invitation to Offer. 3.2 Offer An offer is a proposal of terms and conditions presented in a potential contract by one party, called the offeror, to another party, called offeree. 3.2.1 The Basic Conditions of an Offer 3.2.2 Validity of Firm Offer 3.2.3 Withdrawal of Offer 3.2.4 Revocation of Offer 3.2.5 Termination of an offer 3.2.1 The Basic Conditions of an Offer 3.2.2 Validity of Firm Offer Effective Time of offer Case Study H公司有一批羊毛待售，4月2日公司销售部以信件的形式向某市第一纺织厂发出要约，将羊毛的数量、质量、价格等主要条款做了规定，约定若发生争议将提交某仲裁委员会仲裁。并特别注明希望在15日内得到答复。但由于工作人员疏忽，信件没有说明要约的起算日期，信件的落款也没有写日期。 4月4日公司人员将信件投出，4月17日纺织厂收到信件。恰巧纺织厂急需一批羊毛，第二天即拍发电报请其准备尽快发货。邮