• Title/Summary/Keyword: Conformity of Goods

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A Study on the Conformity of the Goods under International Sale (국제물품매매에서 물품의 계약적합성에 관한 연구)

  • OH, Hyon-Sok
    • THE INTERNATIONAL COMMERCE & LAW REVIEW
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    • v.66
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    • pp.25-46
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    • 2015
  • The purpose of this paper is to provide a legal implication about conformity of goods in the international commercial transactions. There are so many legal relationship after the formation of contract. The most of important thing among the obligations of seller is to provide conformal goods which are of quantity, quality and description required by the contract and which are contained or packaged in the manner required by the contract. If seller violate above duties, seller take the warranty liability. However, CISG describe the conformity of the goods instead of the warranty as follows. First, CISG Art.35(1) states standards for determining whether goods delivered by the seller conform to the contract and Art.35(2) describes standards relating to the goods' quality, function and packaging that, while not mandatory, are presumed to be a part of sales contracts. Article 35(2) is comprised of four subparts. Two of the subparts (article 35(2) (a) and article 35(2)(d)) apply to all contracts unless the parties have agreed otherwise. Second, CISG Art.36 and 38 deals with the time at which a lack of conformity in the goods must have arisen in order for the seller to be liable for it. If seller lack of conformity becomes apparent only after that time, seller is liable for a lack of conformity existing when risk passed to the buyer. Third, CISG Art.49 describe that a buyer who claims that delivered goods do not conform to the contract has an obligation to give the seller notice of the lack of conformity. The most of important things about CISG articles and precedents is that buyer is aware of the lack of conformity and notice it to seller. Failure to satisfy the notice requirements of article 39 eliminates a buyer's defence, based on a lack of conformity in delivered goods, to a seller's claim for payment of the price. Consequently, parties of contract had better agree to the notifying times about lack of conformity. Also, If seller fined the non-conformity, seller has to notify this circumstance to the buyer within short period or agreed time.

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A Comparative Study on the Seller's Duty to Deliver the Goods in Conformity with the Contract in the Sale of Goods (국제물품매매거래에서 매도인의 계약적합성물품 인도의무에 관한 비교연구)

  • Oh, Won-Suk;Lee, Byung-Mun
    • THE INTERNATIONAL COMMERCE & LAW REVIEW
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    • v.37
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    • pp.3-33
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    • 2008
  • This study primarily concerns the seller's duty to deliver the goods in conformity with the contract under the United Nations Convention on International Sale of Goods(1980) in comparison with the Draft Principles of European Sales Law. It describes and analyzes the provisions of the CISG as to the seller's duty, focusing on main controversial issues among scholars in their application. It also attempts to compare the rules of the CISG with those of the Draft PESL and to evaluate them in light of the discipline of comparative law. This is for the purpose of facilitating the systematic development and reform of one jurisdiction by any solution from the other jurisdiction found by the comparative study. In addition, this study provides legal and practical advice to the contracting parties when they intends to insert the CISG or the Draft PESL in their contract as a governing law. The comparative study particularly focuses on the following aspects; first, requirements for conformity with the contract which deals with the concept of conformity with the contract, contractual requirements agreed between contractual parties, and implied requirements otherwise not agreed between contractual parties, second, the time when the goods must be in conformity with the contract, third, exclusions of the seller's duty to deliver the goods in conformity with the contract.

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A Legal Study on the Standard for Conformity of the Goods in the International Sale of Goods (국제물품매매계약상(國際物品賣買契約上) 물품일치성(物品一致性)의 기준(基準)에 관한 법리적(法理的) 고찰(考察))

  • Song, Myeong-Bok
    • THE INTERNATIONAL COMMERCE & LAW REVIEW
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    • v.12
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    • pp.133-162
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    • 1999
  • The international sale transaction is in essence a sale of goods and presents all those commercial and legal problems in any sale of goods. As a result, A International sales contract imposes several duties on the parties : the seller must deliver the goods and transfer ownership in them, while the buyer must pay the price and take delivery of the goods. However, there are several problems which impede a active transaction between seller and buyer who have their places of business in other countries each other. Therefore, It is necessary to provide the concept on the conformity of goods in the Int'l Sale of Goods. Especially, In our consideration for the point of time when defects occurs, the existence of non-conformity of goods should be judged on the basis of time of delivery rather than time of contract. Moreover, The burden of proof about nonconformity of goods is another fact which make an international dispute between the contractual parties in an international trade. Thus, The consistency in the interpretation of law must be maintained betweened the warranty and seller's liability. In the Uniform Commercial Code and UN Convention, non-conformity of contract is made of contract liability. And in our civil and commercial law provisions of warranty should be understand as the special ones of the provisions of general non-performance of obligation liability. As a result, More concrete study of them is required because they may have a great influence especially on international trade. As a result, We should be our best in finding a helpful and systematic structure that the dualistic structure of nonperformance of obligation liability and warranty liability must be unified by studying the theories of English and American warranty and our legal system, as well as international practice and usage being used in an international trade.

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A Comparative Study on the Conformity of Goods in the Contracts for International Sale of Goods - focused on comparing CISG with SGA (국제물품매매계약에서 물품적합성에 관한 비교연구)

  • Oh, Won-Suk;Min, Joo-Hee
    • THE INTERNATIONAL COMMERCE & LAW REVIEW
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    • v.51
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    • pp.79-99
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    • 2011
  • This study describes the seller's duty to deliver the goods in conformity with the contract. The purpose of this study is twofold: to analyze the seller's principal duty, comparing the United Nations Convention on the International Sale of Goods(CISG) with Sale of Goods Act(SGA) and to provide legal and practical advice to contracting parties who consider CISG or SGA as a governing law. This paper first considers the requirements for the conformity with the contract, which means contractual requirements agreed between parties and implied requirements not agreed between parties. Following this, the exclusion of the seller's duty to deliver the goods required by the contract is described. Finally, this paper ends up giving contracting parties legal and practical advice.

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A Study on the Buyer's Specificity Requirement of the nature of the lack of the Conformity (매수인의 부적합 통지 내용의 상세정도에 관한 연구)

  • Heo, Kwang-Uk
    • THE INTERNATIONAL COMMERCE & LAW REVIEW
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    • v.39
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    • pp.27-55
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    • 2008
  • The concept of non-conformity is stipulated at Art. 35, CISG. According to the Art. 35, there is no directly stipulated concept of non-conformity. But Art. 35 said that the Seller must deliver goods which are of the quantity, quality and description required by the contract and which are contained or packaged in the manner required by the contract. Accordingly, the concept of non-conformity contains the conformity of quality, quantity, description, delivery of different goods and documents. Art. 39 does not specify the form of notice required. So parties can require a particular form by agreement. If there is no agreed form of notice, buyer' s notice must be sent by means appropriate in the circumstances. And Art. 39 states that the required notice of lack of conformity must be given to the seller. Notice of defects conveyed by the buyer to an independent third party is not found to have been given by means appropriate in the circumstances. And Art. 39 is subject to the parties' power under Art. 6 to derogate from or vary the effect of any provision of the Convention. When determining which requirement must be satisfied by the buyer is specifying the nature of any lack of conformity, a mixed objective-subjective standard should be applied, which has regard to the respective commercial situation of the buyer and the seller, to any cultural differences, but above all, to the nature of the goods. Also to determine the specificity requirement is to satisfy the purpose of notice of lack of conformity.

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Problems on Validity of the Goods Conformity Clauses in FOB Contracts (FOB 계약(契約)에서 물품적합성조항(物品適合性條項)의 유효성(有效性) 문제(問題) -The Mercini Lady 사건(事件)을 중심으로-)

  • Choi, Myung Kook
    • THE INTERNATIONAL COMMERCE & LAW REVIEW
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    • v.58
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    • pp.35-58
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    • 2013
  • In Mash & Murrell, Diplock J said that "there is an implied warranty not merely that they shall be merchantable at the time they are put on the vessel, but that they shall be in such a state that they can endure the normal journey and be in a merchantable condition upon arrival." But in The Mercini Lady, Field J said that "the goods would be of satisfactory quality not only when the goods were delivered on to the vessel but also for a reasonable time thereafter." and "The proposed conditions were not excluded by clause 18. ${\cdots}$ clause 18 was not to be construed as extending to conditions ${\cdots}$". In relation to the problems on validity of the goods conformity clauses in FOB contracts, when considering Lord Wright's comments ("${\cdots}$ hence apt and precise words must be used to exclude it: the words guarantee or warranty are not sufficiently clear.") in Cammell Laird & Co Ltd v Manganese Bronze and Brass, FOB contracts are fundamentally one that seller's duty to deliver the goods is completing at the port of shipment and "principle of party autonomy" in Contract Law, I do not think that the terms implied by section 14 of the SGA and Common Law cannot absolutely excluded by the goods conformity clauses in sale contracts. Therefore, in order to exclude the implied terms, the parties must very clearly spell out this in the relevant clauses.

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A Comparative Study on the Seller's Duty to Deliver the Goods in Conformity with the Contract (국제물품매매계약상 물품의 계약적합성 의무에 관한 비교 연구)

  • Lee, Byung-Mun
    • Korea Trade Review
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    • v.42 no.6
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    • pp.1-25
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    • 2017
  • This is a comparative and analytical study which comprises of the analysis of the rules of the seller's liability for non-conforming goods of four legal systems under the CISG and the CESL. A purpose of this study is to examine all the rules as to, first, the concept and the nature of the seller's duty to deliver the goods in conformity with the contract, second, the contents of the seller's duty to deliver the goods in conformity with the contract, third, the time when the goods must be in conformity with the contract and the cases where the seller is exempted from his liability for non-conforming goods. Another purpose is to compare the rules of the CISG with those of the CESL, and to evaluate them in light of the discipline of comparative law. This is for the purpose of facilitating the systematic development and reform of one jurisdiction by any solution from the other jurisdiction found by the comparative study. In addition, this study provides legal and practical advice to the contracting parties when they intend to use one of those regimes in their contract as a governing law.

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Disputes on the Application of National Compulsory Law in International Sale of Goods under CISG - with a special reference to Case Law for Non-compliance - (CISG적용 국제물품매매에서 국내 강행법분쟁에 관한 연구 - 물품불일치 분쟁사건 판례를 중심으로 -)

  • Hahn, Jae-Phil
    • Journal of Arbitration Studies
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    • v.19 no.1
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    • pp.147-169
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    • 2009
  • This paper deals with disputes incurred from the CISG provisions in relation with the conformity of goods with a view to finding the general way of approach made by the court and arbitration tribunal in the case laws for the interpretation of CISG based on 6(six) cases thereon. Throughout this study, it has been noted that the German Supreme Court devoted most in creating the general principle of CISG interpretation in relation with national compulsory law of regulation applicable on the conformity of goods. It was New Zealand mussels case in which the German supreme court decided that the exporting country's compulsory law of regulation would be applied in determining the conformity of goods. Furthermore, German supreme court added that CISG does not place an obligation on the exporter to supply goods, which conform to all statutory or other public provisions in force in the import state unless the same provisions exist in the export State as well, or the importer informed the exporter about such provisions existing in the import state, or the exporter had knowledge of the provisions due to special circumstances. It is stipulated in CISG that the goods conform with contract if they are fit for the purpose for which goods of the same description would ordinarily be used. When questions arise concerning matters governed by the CISG that are not expressly defined in the CISG, the question is to be settled in conformity with general principles on which the convention is based. Only when such a general principle cannot be found may the tribunal turn to other sources such as UNIDROIT Principles, Principles of European Contract Law and Lex Mercatoria, etc. Interpretation of CISG should be autonomous, in the sense that it should not depend on principles and concepts derived from any national legal system. Even where a CISG rule is directly inspired by domestic law, the court should not fall back on its domestic law, but interpret the rule by reference to the CISG with a view to its international character and to the need to promote uniformity in its application and the observance of good faith in international trade.

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The Rules of Law on Warranty Liability in Contracts for the International Sale of Goods - With Special Reference to CISG - (국제물품매매계약에 있어서 하자담보책임에 관한 법리 - CISG를 중심으로 -)

  • Hong, Sung-Kyu
    • Journal of Arbitration Studies
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    • v.24 no.4
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    • pp.147-175
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    • 2014
  • In contracts for the international sale of goods, a seller must deliver appropriate goods and hand over relevant documents according to a contract, which will transfer the ownership of the goods to a buyer. In this case, if there are defects in the contracted goods, the warranty liability will occur. However, in the United Nations Convention on Contracts for the International Sale of Goods (CISG), a term-the conformity of the goods to the contract-is used universally instead of the warranty. According to the CISG, a seller must deliver goods in conformance with the relevant contract in terms of quantity, quality, and specifications, and they must be contained in vessels or in packages according to the specifications in the contract. In addition, a certain set of requirements for conformity will be applied implicitly except when there is a separate agreement between parties. Further, the base period of conformity concerning the defects of goods is the point when the risk is transferred to the buyer. A seller shall be obliged to deliver goods that do not belong to a third party or subject to a claim then, and such obligations shall affect the right or claim of a third party to some extent based on intellectual property rights clauses. If the goods delivered by the seller lack conformity, or incur right infringement or claim of a third party, then it shall be regarded as a default item per the obligation of the seller. Thus, the buyer can exercise diverse means of relief as specified in Chapter 2, Section 3 (Article 45-Article 52) of the CISG. However, such means of relief have been utilized in various ways for individual cases as shown in judicial precedents made until now. Contracting parties shall thus keep in mind that it is best for them to make every contract airtight and they should implement each contract thoroughly and faithfully to cope with any possible occurrence of a commercial dispute.

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A Study on the Buyer's Right of Reducing the Price in International Sale of Goods (국제물품매매에서 매수인의 대금감액권에 관한 고찰)

  • HA, Kang-Hun
    • THE INTERNATIONAL COMMERCE & LAW REVIEW
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    • v.71
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    • pp.37-58
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    • 2016
  • CISG Article 50 contains the remedy of price reduction but limits it if the seller has a right to cure. Reduction of price presupposes that the seller delivers non-conforming goods, and that the buyer decides to accept them nevertheless. The remedy of price reduction differs from all other remedies provided in CISG with regard to it effects and to the time-limits. As to the time-limits, unlike Articles 46 and 49, Article 50 does not contain the element within a reasonable time. CISG imposes no period of time for his reducing the price. The buyer's right to declare a reduction of the price is expressly subject to the seller's right to remedy any failure to perform his obligations pursuant to Articles 37 and 48. The problem lies in determining from where to take the figures for comparing the value of the goods contracted and of those delivered. The price level in this place will usually determine his considerations as to resale or repair of the defective goods. The buyer must examine the goods, or cause them to be examined, within, as short a period as is practicable in the circumstances. The buyer loses the right to rely on a lack of conformity of the goods if he does not give notice to the seller specifying the nature of the lack of conformity within a reasonable time after he has discovered it or ought to have discovered it.

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