Law international Business

INTERNATIONAL

BUSINESS

LAW

Convention on International Sale of Goods , 1980 ' more popularly known as the Vienna Convention , in force since 1988 , is the basic international law dealing with International Sales Contracts with a view to ensure harmonized international trade

In the present essay we are dealing with a particular contract that has been entered into by two persons staying and having their businesses in two different States . The legality and applicability of the Vienna Convention to the said contract is the first point that has to be determined . The

essay shall then deal with the obligations of both the contracting parties , namely , the buyer and seller and will finally look into the remedies available to the buyer

Article 1 of the Vienna Convention deals with the applicability of the Convention . It states that the Convention applies to those contracts entered into by two parties running their respective businesses in different States and the said two States are contracting States to the Vienna Convention and that both the parties are aware that they run businesses in different States and the same has been disclosed to all concerned either before or at the time of entering into the contract and the same can be ascertained from the contract or the dealings or the information disclosed (Indira Carr , 2005 : 62-63 . Article 2 of the Convention deals with the situations where the provisions of the Convention are not applicable . This clause clearly states that the Convention cannot be applied if the goods sold are for personal use , or are sold by auction or on execution or authority of law , or the goods in question are negotiable instruments , stocks shares or money , or are ships , vessels etc or in cases relating to electricity . Applying these provisions to the present case study , it is seen that both the buyer and seller have their respective businesses in different States , i .e Germany and Australia . Secondly , the facts of the case imply that both parties to the contract were aware that they were from different States Further the goods sold do not fall under any of the specifications mentioned in Article 2 as the facts of the case clearly state that the goods were to be sold for commercial purpose during the World Cup matches in Germany

However , it is pertinent to note that for any Convention to be enforceable or applicable in a particular State , it is necessary that the States ratify the Convention . In other words ratification mean that the State accepts the Convention and any contract entered into by persons belonging to that country that is made according the provisions of the Convention will be deemed to be enforceable in that country State . It is therefore necessary to establish whether the two States that are covered in the present case study are parties to the Convention and have ratified the same or not . On going through the Status of Ratification published by the UNCITRAL it can be seen that both the States have ratified the...