Contract formation under CISG and Indian law

The CISG lets you do business with clients from all over the world without having to worry
about local, internal legal parameters relevant to the business. It does this by creating a
standard set of rules which can be applied to a contract for services or a contract for products.
If a country has ratified the CISG, then its rules apply by default with any international
contracts made within it. The topic is interesting, it generates new question. Background
reading of topic can help to choose and draw an outline of the topic and refresh my
knowledge which reason why I chose this topic.

Synopsis
The movement to make laws that are applicable uniformly on the issue of sale of goods,
worldwide, is not new. It started in 1920 and because of it United Nations Convention on
Contracts for the Sale of International Goods Act (hereinafter referred to as "CISG") came
into existence in 1980. CISG came into force on January 1, 1988 and it currently has been
adopted by seventy seven (77) States including China, Japan, Canada, Mexico, Germany,
France, Switzerland, and virtually every other major trading country (but not the United
Kingdom, Brazil, India, or South Africa). CISG is a set of legal rules concerning formation of
contracts, obligation of sellers and buyers and remedies for the breach of contracts. The
preamble of the CISG clearly mentions the object and purpose of the Convention.

Like any other Convention CISG is also facing agreement and disagreement towards its
acceptance and inclusion by countries in their national laws and trade practices. This dilemma
within the countries could be observed from the reports submitted by experts in this regard.
The recommendation of Singapore Law Reform Committee’s Report on the CISG is in
favour of the Convention on the other hand commentators like Arthur Rossett and Professor
G. H. Trietel express reservations about its adoption. The two primary reasons for the success
of CISG are its applicability and the way it is interpreted.

CISG is applicable only on international sale of goods contracts. This is the primary reason
why this Convention has received such an acceptance from the majority of the countries
involved in world trade. Although, CISG is applicable on international sale of goods
contracts, its application may have effects on domestic law. Furthermore, mere ratification or
adoption is not adequate to create true uniformity, but it creates harmony in the application of
an instrument. Uniformity comes next with the member country legislating a new law or
amending the existing laws on the issue.

Contents
Introduction

About the Convention

Need for uniform sales laws

Why India should adopt the CISG

Why India is hesitating in signing the CISG

Conclusion