CISG United Nations Convention on Contracts for the International Sale of Goods (1980)
Int. Privat- & Wirtschaftsrecht
- The articles on scope of application indicate both what is covered by the Convention and what is not covered. The Convention applies to contracts of sale of goods between parties whose places of business are in different States and either both of those States are Contracting States or the rules of private international law lead to the law of a Contracting State. A few States have availed themselves of the authorization in article 95 to declare that they would apply the Convention only in the former and not in the latter of these two situations. As the Convention becomes more widely adopted, the practical significance of such a declaration will diminish. Finally, the Convention may also apply as the law applicable to the contract if so chosen by the parties. In that case, the operation of the Convention will be subject to any limits on contractual stipulations set by the otherwise applicable law.
- The final clauses make two additional restrictions on the territorial scope of application that will be relevant to a few States. One applies only if a State is a party to another international agreement that contains provisions concerning matters governed by this Convention; the other permits States that have the same or similar domestic law of sales to declare that the Convention does not apply between them.
- Contracts of sale are distinguished from contracts for services in two respects by article 3. A contract for the supply of goods to be manufactured or produced is considered to be a sale unless the party who orders the goods undertakes to supply a substantial part of the materials necessary for their manufacture or production. When the preponderant part of the obligations of the party who furnishes the goods consists in the supply of labour or other services, the Convention does not apply.
- The Convention contains a list of types of sales that are excluded from the Convention, either because of the purpose of the sale (goods bought for personal, family or household use), the nature of the sale (sale by auction, on execution or otherwise by law) or the nature of the goods (stocks, shares, investment securities, negotiable instruments, money, ships, vessels, hovercraft, aircraft or electricity). In many States some or all of such sales are governed by special rules reflecting their special nature.
- Several articles make clear that the subject matter of the Convention is restricted to formation of the contract and the rights and duties of the buyer and seller arising from such a contract. In particular, the Convention is not concerned with the validity of the contract, the effect which the contract may have on the property in the goods sold or the liability of the seller for death or personal injury caused by the goods to any person.
UNCITRAL Digest CISG, Art. 5
This Digest of Case Law on the United Nations Convention on Contracts for the International Sale of Goods (CISG) was prepared by the UNCITRAL Secretariat in cooperation with national correspondents and international experts. It may serve as a commentary on the CISG. The following excerpt contains the commentary on Article 5 CISG.
Recommended citation: UNCITRAL, Digest of Case Law on the United Nations Convention on Contracts for the International Sale of Goods (2016), Art. 5, para. #.
1. Pursuant to this provision, the Convention does not deal with liability for death or personal injury caused by the goods to any person,1 regardless of whether the injured party is the buyer or a third party. Consequently, national law applies to those matters.
2. Article 5 declares that the Convention does not govern liability for death or personal injury “to any person”.2 Although this can be read to exclude a buyer’s claim against the seller for pecuniary loss resulting from the buyer’s liability to third parties for personal injury caused by the goods, one court has applied the Convention to such a claim.3
3. According to part of the case law, any claims for damage to property caused by non-conforming goods are governed by the Convention and do not fall within scope of the article 5 exclusion.4 This excludes any concurrent domestic remedies for damage to property. Consequently, in those cases where the Convention applies, it requires a buyer to notify the seller of the lack of conformity that caused the damage to property in order for the buyer not to lose its claim.5 Where the damage to property is not “caused by the goods”, as where the buyer’s property is damaged by delivery of the goods, the liability issue must be settled on the basis of applicable domestic law.
4. According to some courts, however, the Convention does not deal with concurrent tort claims6 or claims based on the seller’s negligent or fraudulent misrepresentation,7 thus not pre-empting any such claim, but rather leaving it to the applicable domestic law to determine the prerequisites of any such claim.
1 See CLOUT case No. 196 [Handelsgericht des Kantons Zürich, Switzerland, 26 April 1995] (see full text of the decision).
2 CLOUT case No. 196 [Handelsgericht des Kantons Zürich, Switzerland, 26 April 1995].
3 See CLOUT case No. 49 [Oberlandesgericht Düsseldorf, Germany, 2 July 1993] (see full text of the decision).
4 See CLOUT case No. 196 [Handelsgericht des Kantons Zürich, Switzerland, 26 April 1995].
5 See CLOUT case No. 280 [Thüringer Oberlandesgericht, Germany, 26 May 1998]; CLOUT case No. 196 [Handelsgericht des Kantons Zürich, Switzerland, 26 April 1995].
6 U.S. District Court, Eastern District of Arkansas, United States, 23 December 2009, available on the Internet at www.cisg.law.pace.edu; CLOUT Case No. 579 [U.S. Southern District Court for New York, United States, 10 May 2002]; CLOUT case No. 420 [U.S. District Court, Eastern District of Pennsylvania, United States, 29 August 2000].
7 U.S. District Court, Eastern District of Arkansas, United States, 23 December 2009, available on the Internet at www.cisg.law.pace.edu; U.S. District Court, Southern District of Ohio, United States, 26 March 2009, available on the Internet at www.cisg.law.pace.edu; U.S. District Court, Southern District of Ohio, United States, 10 October 2006, available on the Internet at www.cisg.law.pace.edu; CLOUT case No. 579 [U.S. District Court, Southern District of New York, United States, 10 May 2002].
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