What is convention on the international sale of goods?

The Convention on the International Sale of Goods (CISG) is a treaty that governs the international sale of goods between businesses in different countries. It was developed by the United Nations Commission on International Trade Law (UNCITRAL) and came into effect in 1988.

The CISG applies to contracts for the sale of goods, including raw materials, machinery, and other tangible items, between businesses located in different countries that have ratified the agreement. The treaty establishes rules for the formation and performance of contracts, the rights and obligations of the parties, and remedies for breach of contract.

One of the key features of the CISG is its principle of good faith. This requires parties to act honestly and fairly in their dealings with each other and to observe reasonable commercial standards. The treaty also includes provisions on the transfer of ownership, the risk of loss, and the delivery of goods.

The CISG has been ratified by over 90 countries, including the United States, Canada, China, and most of Europe. However, some countries, such as the United Kingdom and Australia, have not yet ratified the agreement.

Overall, the CISG provides a common framework for international sales contracts and helps to promote trade and commerce by reducing legal uncertainty and enhancing the predictability of commercial transactions.