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CHAPTER10SALES10-1
CHAPTER10
SALESTopicsforthischapter:UNConventiononContractsfortheInternationalSaleofGoods(CISG)TransactionsCoveredinCISGContractualIssuesExcludedfromCoverageofCISGInterpretingCISGInterpretingSalesContractsFormationoftheContractGeneralStandardsforPerformanceSeller’sObligationsThePassingofRiskRemediesExcusesforNonperformance10-2
UNConventiononContractsfortheInternationalSaleofGoodsTheCISG,adoptedin1980,incorporatesrulesfromallthemajorlegalsystems.Itprovidesacceptedsubstantiverulesonwhichcontractingparties,courts,andarbitratorsmayrely.Ithasbeenratifiedby72countries,buthasnotbeenratifiedbyBrazil,Japan,India,andtheUK.Japanisexpectedtoratifyitin2008.10-3
TransactionsCoveredinCISGCISGappliestocontractsforinternationalsaleofgoods.Thebuyerandsellermusthavetheirplaceofbusinessindifferentstates.Either:Bothofthestatesmustbecontractingpartiestotheconvention,orTherulesofprivateinternationallawmustleadtotheapplicationofthelawofacontractingstate.AratifyingstatemaydeclarethatitwillapplyCISGonlywhenthebuyerandsellerarebothfromcontractingstates.10-4
OptingInandOutPartiestoacontractmayexcludeormodifyCISG’sapplicationbyachoice-of-lawclause.Achoice-of-lawclauseisacontractualprovisionthatidentifiesthelawtobeappliedintheeventofadisputeoverthetermsortheperformanceofthecontract.10-5
Case10-1:AsanteTechnologies,Inc.v.PMC-Sierra,Inc.Issue:DoestheU.S.federalcourthavejurisdictionanddoesCISGapplytothiscontract?ThecourtdeterminedthepartieswerefromdifferentstatesandCISGappliestocontractsbetweensuchparties.ThepartiesdidnotoptoutoftheCISGanditwasthecontrollinglaw.10-6
SalesDefinedAsaleistheexchangeofgoodsforanamountofmoneyoritsequivalent.TheCISGdoesnotdefinesales,butvarioussectionspresent
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