• Journal of Arbitration Studies
• /
• v.32 no.4
• /
• pp.33-51
• /
• 2022

According to the CISG, there are no special regulations for a reasonable period of time among the obligations to notify the contractual suitability of the goods. As a result, many disputes arise in 'notification within a reasonable period' despite being the most important treaty in practice in defining the obligation to notify nonconformities according to the suitability of goods for each case. Regarding the interpretation of Article 39 of the CISG, various judgments and arbitration decisions are being made in each country for a reasonable period to notify that the goods are not suitable for the contract.There are criticisms that these various views are too harsh on the buyer in the buyer's obligation to notify.It is important to create a unified principle because courts or arbitration agencies of the Contracting States of this Convention interpret in various ways the reasonable period of violation of the contract of goods stipulated in the Convention. Since most of the international commodity trading transactions around the world are regulated by the CISG, it is necessary to analyze and interpret cases in which this Convention is applied in court or arbitral tribunal of each country to derive a unified principle.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
• /
• v.75
• /
• pp.49-69
• /
• 2017

Making a international contract of sale is not a simple work. International Trade parties(seller and buyer) may choose trade terms such as FOB or CIF to simplify their contracts and avoid misunderstanding of international commercial practice. Incoterms is the international rules for the interpretation of the trade terms, and firstly regulated by the ICC in 1936. The latest version is Incoterms 2010. Incoterms 2010 governs certain responsibilities between the seller and the buyer under the international contract of sale. Moreover, Incoterms 2010 provides the standard of division of costs relating to contract of carriage. But we should note that Incoterms 2010 is not the part of contract of carriage. The writer points out that there is no consistence principle in distributing the special costs under the contract of carriage like unloading cost from the transport vehicle. To avoid the dispute between the parties, it is more safe for international traders to fully and completely understand on the customs and practice of carriage of goods. Incoterms 2010 provides more detailed method of delivery of goods than CISG and RAFTD. Concerning the method of delivery of goods, CISG and RAFTD simply provide that the seller shall place the goods at the discharge of buyers. The writer suggests the basic principles to allocate the special costs of delivery of goods according to the trade terms under Incoterms 2010.

• Management & Information Systems Review
• /
• v.7
• /
• pp.451-462
• /
• 2001

국제물품매매계약은 당사자간의 합의에 의해서 이루어진다. 그러나 국제간의 물품매매에 관련하여 모든 상황을 특정계약에 반영하는데는 한계가 있다. 따라서 특정계약에 대한 해석과 판단의 기준이 되는 하나의 보편적이며 합리성에 기초를 둔 준거법이 필요하게 된다. 이러한 준거법은 어느 특정국가의 사범으로 충분할 수도 있지만 국제거래가 안전하고 원활하게 실행되기 위해서는 그것이 세계 어느 나라에 있어서도 같은 내용의 통일적인 법에 의하여 규율되는 것이 바람직하다. 특히 경제적 합리성에 기초를 둔 거래법의 분야에서는 이론적으로 법의통일은 가능하며 실제적으로는 로마의 사법통일협회(UNIDROIT)나 국제연합 국제상거래위원회(UNIDROIT)에 의하여 지금까지 어느 정도 통일사법 제정의 필요성이 꾸준히 제기 되어 왔다. 이러한 목적을 수행하기 위하여 UNICITRAL(국제연합 국제상거래위원회)이 1980년에 발표한 국제물품매매계약에 관한 UN 조약-비엔나협약(CISG)은 국제간의 물품매매에 관한 계약법으로서 중요한 역할을 수행하고 있다. 비엔나협약(CISG)의 법리적인 근거는 "자주적인 준거법의 제정 및 그 적용상의 통일성"에 있다는 것이다. 또한 그 내용을 보면 첫째, 지역적 의미를 가지는 법률용어의 사용을 피하고 대신 격지간의 계약시 실제로 발생하는 현실적 사례의 관점에서 법안을 작성하고자 하였고 둘째, 그 내용을 달리하고 있는 각국의 사법을 통일하는 것에 의해 모든 사법적 법률관계에 같은 내용의 사법을 적용하는 방법, 즉 세계통일사법의 제정이라 하겠다. 본 연구는 비엔나협약(CISG)의 입법취지와 배경을 고찰하였으며 또한 통일사법으로서 협약상의 "일반원칙의 통용"을 계약성립(Formation of Contract)의 과정별로 정리하였다.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
• /
• v.51
• /
• pp.187-210
• /
• 2011

International transactions have the threat of non-payment by the buyer or non-performance by the seller. Parties tend to search for additional means of securing performance and payment beyond the mere agreement in the contract. Such security may be achieved by means of a letter of credit. When contracting parties have agreed to pay by means of a letter of credit, the buyer's bank takes upon itself the obligation to pay the purchase price when the seller tenders the documents that are stipulated in the letter of credit. The documents must comply strictly with the terms of the credit.. The documents play a crucial role in letter of credit transaction. The principles of abstraction, separability and strict compliance governing the letter of credit transaction are considered. The concept of fundamental breach of Article 25 CISG was discussed. This article examines whether a failure to deliver documents conforming to the terms of the letter of credit can constitute a fundamental breach of the sales contract as defined by Article 25 of the CISG by the seller and thereby enable the buyer to avoid the contract. For letter of credit transactions it should be accepted that the delivery of non-performing documents constitutes a fundamental breach, if the result of this breach is that the bank refuses to pay the price for the goods. On the other hand, in the interpretation of Article 25 CISG, it should be noted that if the parties have agreed to payment by means of a letter of credit, they have simultaneously agreed to apply the strict compliance principle to the delivery of documents in the sales contract. Finally the parties should ensure that inconsistency between the requirements under the documentary credit and the requirements under the contract of sale is avoided, since the buyer may be in breach of his payment obligation if the seller cannot get paid under the documentary credit when his documents conform with the contract of sale.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
• /
• v.43
• /
• pp.3-23
• /
• 2009

The meaning of Good faith is honest intent to act without taking an unfair advantage over another person or to fulfill a promise to act, even when some legal technicality is not fulfilled. The term is applied to all kinds of transactions. According to the CISG only regulated Art. 7. that is in the interpretation of this Convention, regard is to be had to its international character and to the need to promote uniformity in its application and the observance of good faith in international trade (1) and questions concerning matters governed by this Convention which are not expressly settled in it are to be settled in conformity with the general principles on which it is based or, in the absence of such principles, in conformity with the law applicable by virtue of the rules of private international law (2). In the other hand PICC is related to the good faith and fair dealing, each party must act in accordance with good faith and fair dealing in international trade (1) and the parties may not exclude or limit this duty (2). Good faith of PECL is these principles should be interpreted and developed in accordance with their purposes. In particular, regard should be had to the need to promote good faith and fair dealing, certainty in contractual relationships and uniformity of application. Further more regarding to the good faith and fair dealing, same to the PICC regulations.

• International Commerce and Information Review
• /
• v.16 no.3
• /
• pp.159-182
• /
• 2014

CISG Article 71 (1) states that a party may suspend the performance of his obligations if, after the conclusion of the contract, it becomes apparent that the other party will net perform a substantial part of his obligations as a result of a serious deficiency in his ability to perform or in his creditworthiness or his conduct in preparing to perform or in perfoming the contract. CISG Article 71 (2) states a 'right of stoppage in transit' that if the seller has already dispatched the goods before the grounds described in the preceding paragraph become evident, he may prevent the handing over of the goods to the buyer even though the buyer holds a document which entitles him to obtain them. The present paragraph relates only to the rights in the goods as between the buyer and the seller. Under the right of stoppage in transit, the carrier copes with risks that the seller may claim damages arose from the handing over the goods, if he hand over the goods to the buyer and that the buyer may claim damages, if he deny handing over the goods to the buyer who has the document which entitles him to obtain the goods. Therefore the legal position of the carrier may become weak. This paper purpose to point out the legal weakness of the carrier under the right of stoppage in transit and to provide the proper legal act of the carrier and possible practice related to various characters of the contract of sale of the goods. Although there is the opinion it prevent from handing over the goods to the buyer actually under the interpretation that the buyer should take claim damages to the seller, if the goods are handed over to the buyer under the right of stoppage in transit, it is not appropriate because the opinion may disable the right of stoppage in transit. The right of stoppage in transit could be carried out under any payment conditions except letter of credit and under any mode of transportation except the cases that carrier is the buyer himself or the agent of the buyer. It could be executed regardless the forms of the transport document.

• Journal of Arbitration Studies
• /
• v.21 no.1
• /
• pp.131-155
• /
• 2011

PICC executes its role as a useful lex mercatoria in the continuously increasing international trade to be adopted as the standard criterion of prevention or dispute resolution. When considering the fact that GISG has not presented results beyond expectation in the past due to hard laws and legal deficiency, PICC, which possesses interpretation and supplementation function, is considered undoubtedly useful particularly in international commercial arbitration. As observed in the previously mentioned analysis on cases accumulated in UNILEX, PICC application and Arbitral tribunal in international contract between parties possess considerably large claim possibility and the number of actual application cases is continuously increasing. The fact that PICC has been composed as maximum common measures of continental and common law systems by traditional comparative legal scholars familiar with international trade can function as the fundamental principle in future global trade activity and can also act as the model law for uniting contract laws of nations. In this aspect, PICC can be evaluated to have considerably achieved enactment purpose of previous intention. However, additional topics that had not been accepted in the revised edition of PICC remain as assignments requiring solution, such as analysis and acceptance problem of comparative law, PR of PICC unfamiliar even to the relative parties of international trade and application in international contract, and absorption problem as model law in various domestic laws.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
• /
• v.69
• /
• pp.127-151
• /
• 2016

UNIDROIT Principles of International Commercial Contracts(PICC) was published in 1994. PICC has been functioned as a guideline of international commercial contracts, an applicable law to govern a contract by the agreement of the parties to a contract, general principles of law and lex mercatoria. In addition, PICC has a role of interpreting or supplementing international uniform law instruments as well as domestic laws, and also has served as a model for national and international legislations. PICC has been accepted as a authoritative source of knowledge of international trade usages of international commercial contracts to the arbitral tribunal rather than domestic court because it excluded the characteristics of hard law at the drafting stage. This article dealt with the rule on gross disparity of validity which fall outside the scope of UN Convention on Contract for the International Sale of Goods(CISG), which has obtained a leading legal position of uniform law in international sales of good. In other words, PICC suggests a series of meaningful solutions to the issue of gross disparity of contract which is the most complicated among legal disputes occurring during the process of conclusion of contact and also extremely different and diverse between legal systems. This article covered the issue of gross disparity of contract at the conclusion of contact and suggested the legal basis of several rules related to the gross disparity by analysing gross disparity rule of PICC. Furthermore, this article suggested legal check points or implication as well as interpretation and evaluation on doctrine of laesio enormis and undue influence or unconscionability. This article also dealt with a comparative analysis with Principles of European Contract Law(PECL) and Common European Sales Law(CESL) which have important legal positions in the area of international commercial contract as well as in terms of close relationship to PICC by linking with recent court or arbitral tribunal rulings.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
• /
• v.66
• /
• pp.119-148
• /
• 2015

Generally, the liability for breach is defined as the civil liability that arises from the conduct of violation of a contract. There are two notable principles governing liability for breach that have fundamental impacts on the unified Contract Law of the People's Republic of China (hereinafter Chinese Contract Law) in the remedies. In China, during the drafting of the Contract Law, there was a great debate as to whether damages for breach of contract ought to follow the fault principle or to follow the strict liability principle. Ultimately the Chinese Contract Law follows the model of the CISG on this point, namely, it follows the strict liability principle (article 107) with an exemption cause of force majeure. Under Chinese Contract Law, it is interpreted as strict liability in principle. Strict Liability is a notion introduced into Chinese Contract Law from the Anglo-Saxon Law. The strict liability or no fault doctrine, on the contrary, allows a party to claim damages if the other party fails to fulfill his contractual obligations regardless of the fault of the failing party. Pursuant to the strict liability doctrine, if the performance of a contract is due, any non-performance will constitute a breach and the fault on the party in breach is irrelevant. This paper reviews problems of legal character or legal ground of contractual liability in Chinese contract law. Specifically, focusing on the interpretation of Chinese contract law sections and analysis of three cases related contractual liability in freight agency, the paper proposes some implications of structural features of Chinese contract law and international commercial transactions.