Paper Topic:

international business law case study

(Jack Norris (International Business Law

International Business Law Case Study (Jill Breaden

International Business Law Case Study

Development of International Trade has led to the need for international rules to govern contracts . The United Nations Convention on Contracts for the International Sale of Goods (1980 ( the Convention ' for brevity ) was adopted and ratified by many countries in to ensure uniform interpretation of contractual terms and conditions . The present case deals with a contract between two traders living in different countries through this essay the laws that govern their contract will

be explored

No contract can exist in a vacuum without being governed by a law that seeks its application in the domestic law . All contracts should be governed by some law either domestic or international . It has been the case that when private international law governs a contract then there is a possibility of conflict . The conflict arises due to the dilemma in the minds of the Court as to which law should be made applicable . It has been seen that

There are two possibilities in such situations , the first where the contract is silent on the domestic law and second where the contract stipulates the law that governs it . Where the contract does not mention the law governing it , a conflict of law can arise . In such conflict situations , the Australian law clearly states that the law of the State having the closest connection to the contract will apply or in the alternative the International Law being the Convention will apply (Zeller 1999 : 1

In the present case we can see that the Australian Law governing sale of goods , the Sale of Goods (Vienna Convention ) Act 1987 , incorporates the provisions of the Convention . According to s . 6 of the Act , `the Convention prevails in cases of dispute between the two . Hence it can be safely concluded that Article 1 (1 ) of the Convention is applicable to such contracts . The rule of application being that `the States should be Contracting States , or where they are not then their rules of private international law should lead to application of law of a Contracting State . In the present case both Germany and Australia are contracting States and hence this contract is governed by the Convention (Uncitral 2006

Article 14 of the Convention states that there is no specific format for contracts , it could be oral or in writing . All contracts should essentially contain clear details of the contracting parties , the offer that is made by one and the proper acceptance of the offer by the other Further , contract should be for sale of goods for money between parties living in different States . In the present case , there is a clear contract between Digit and Bildia for purchase of motors but it is not clear whether the same was in writing or oral . Assuming that it was in writing the next important thing is to identify the terms of contract that would best suit both parties . The facts state that it was...

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