CISGL Course Manual
CISGL Course Manual
Course Instructor:
Elective
This document is prepared by the course instructor and contains basic information relevant to the
execution of the course. It is the official record for all intends and purposes as far the elective
course, Comparative International Sale of Goods, is concerned.
This course manual can be used as a general guide to the subject. However, the instructor can
modify, extend or supplement the course (without tampering its basic framework and objectives)
for the effective and efficient delivery of the course. Albeit, the instructor will provide the
students with reasons for such changes.
Part I
Course Code:
Course Duration: One Semester (15 Weeks)
No. of Credit Units: 4 credits
Level: UG, PG or Both.
Medium of Instruction: English
Pre-requisites: The Law of Contract
Pre-cursors:
Equivalent Courses:
Exclusive Courses:
Part II
1. Course Description
International trade forms the catalyst for the development of the law on the transnational sale of goods. A
contract for the sale of goods is considered to be international when it consists of a transnational element
– namely when the parties belong to different nationalities or when the performance (in terms of the
delivery or the payment of goods) must take place overseas. It is in this context that international trade
forms the primary driving force for the development of the law on the global sale of goods.
While national governments have attempted to create suitable conditions for free trade within which
merchants may exchange goods, international trade has been burdened with conflicting regulatory
mechanisms. For this reason, legal scholars have justified the creation of a framework that varies from
that prevailing at the national level to regulate transactions on the international sale of goods on the
ground that domestic law must be restricted to regulating internal matters, which have no international
element. As such, the principles of domestic law are not naturally formulated to resolve disputes with
international characteristics – which must essentially be governed by agreement among sovereign nations.
This is because the rules and principles differ depending on the peculiarity of the legal system within
which, they are based – for instance, in a jurisdiction following the common law (the United Kingdom,
Australia, India) or, the civil law (the European Union, India’s BRICS partners – Brazil, Russia and
China). This phenomenon, in turn, explains why the principles on the international sale of goods have
been at the forefront when it comes to the harmonization and unification of various aspects of the law of
contract. The focus in recent times has shifted from the application of the domestic law at the
international level to the formulation of international instruments based on generally accepted standards
to regulate disputes arising in such matters. While some legal systems such as India have strongly resisted
these transformations, the rationale for this paradigm shift (in favour of unification) in other jurisdictions
has been two-fold. Firstly, to pronounce general and widely accepted international practices where
interested parties are ensured that disputes adjudicated according to the highest commercial standards.
Secondly, to drastically reduce costs involved in the enforcement of the law and increase predictability in
the application of the rules.
The attempts to regulate the international sale of goods involve treaties and conventions, which are
binding by nature. The United Nation’s Convention on the International Sale of Goods also referred to as
the Vienna Convention or the CISG serves as the most popular example. Among the non-binding
instruments (also known as soft law), the efforts of the UNIDROIT in framing the Principles on
International Commercial Contracts (PICC), the UNCITRAL in formulating the Model Law on
International Commercial Arbitration and Arbitration Rules and, the Hague Principles on Choice of Law
in International Commercial Contracts, deserves mention. The International Chamber of Commerce’s
INCOTERMS is also a valuable addition to the law on the international sale of goods. Lastly, the law
relating to the international sale of goods has been regulated via lex mercatoria, which may be defined as
autonomous rules operating individually from any national legal system.
2. Course Aims
Understand the role and application of trade terms (ICC INCOTERMS) while drafting
international agreements on the sale of goods;
Understand the mechanism to identify the law that will govern a dispute arising from the
international sale of goods in some major jurisdictions such as the EU, the UK, the BRICS, Japan
and the United States. This aspect would involve an examination of a) the parties’ right in
international law to pre-decide the applicable law, b) the extent to which, this right prevails in
determining the law in these jurisdictions, c) the applicable law in the absence of such an
agreement and, d) an in-depth examination of the rules for the application of the CISG (including
those which lead to its application before courts in the UK, India or South Africa, which are not
presently signatories to the instrument). In doing so, the students would additionally be able to
understand the factors that must be considered while drafting (or agreeing upon) choice of law
clauses in international contracts for the sale of goods.
Understand the interpretation of international instruments and how it differs from that of the
national laws; and
Predict the outcome of disputes which may arise before the courts in these jurisdictions. This
aspect would involve examining the circumstances which call for the termination of the contract
and/or the re-negotiation of the terms of the agreements and, the remedies available for non-
performance (such as the failure to perform or defective performance).
Identify the gaps in the laws applicable in these jurisdictions and understand the different
mechanisms/provisions available in the form of soft-law to fill these lacunae at the time of
resolving such disputes. The different mechanisms to regulate international disputes arising from
the sale of goods between private persons.
3. Teaching Methodology
Lecture method
Readings
Problem-solving
Reasoning for judgments
Of the total score required to pass this course, a minimum of 50% shall be obtained by the
student in the course work (i.e., combined score of internal assessments and end semester
examination).
Grade Sheet
Percentage Grade Grade Grade Description
of Marks Value
Internal assessment of the participants will be based on the following criteria. In case any of the
participants miss the IA tests, alternative internal assessments will be conducted (Please specify
the alternative assessment)
Part IV
Course/Class Policies
The University rules regarding plagiarism will apply. Students are expected to be familiar with
and adhere to university policies in relation to plagiarism. A case of plagiarism will result in F
for the course.
Cell Phones
Not allowed
As needed
Part V
Reading Materials
For the list of relevant reading materials, see Relevant Readings provided in and at the end of
weekly course plan.
ADDITIONAL READINGS
Henry Mather, Choice of Law for International Sales Issues
Not Resolved by the CISG, 20 J.L. & Com. 155 (2001).
James T. Gilbert, Choice of Forum Clauses in International
and Interstate Contracts, 65 Ky. L.J. 1 (1976).
Louis C. James, ‘Effects of the Autonomy of the Parties on
Conflict of Laws Contracts’ (1959)
CONSEQUENCES OF
Andrew Babiak, Defining Fundamental Breach under the
NON-
United Nations Convention on Contracts for the International
PERFORMANCE OF A
Sale of Goods, 6 Temp. Int’l & Comp. L.J.113 (1992).
CONTRACT.
France Ferrari, Fundamental Breach of Contract under the
The parties’ inability to UN Sales Convention- 25 Years of Article CISG-, 25J.L. &
perform a contract may Com. 489 (2006).
be attributed to several Ingeborg Schwenzer, Force Majeure and Hardship in
circumstances. In some International Sales Contracts, 39 VUWLR 709, 709- 726
(2008).
situations, it may be due
Ingeborg Schwenzer, FORCE MAJEURE AND HARDSHIP
to an impeding
IN INTERNATIONAL SALES CONTRACTS
eventuality. In others,
Saloni Khanderia, COMMERCIAL IMPRACTICABILITY
non-performance may
UNDER THE INDIAN LAW OF CONTRACT: THE
occur due to out of sheer
UNIDROIT PRINCIPLES AS THE WAY FORWARD
recklessness or the
Sarah Jenkins, Exemption for Nonperformance: UCC, CISG,
inability to perform on a UNIDROIT Principles-A Comparative Assessment (1998)
timely basis. This module
discusses the nuances of
the non-performance of a ADDITIONAL READINGS
contract. In particular, it Bridge, M, ‘Avoidance for Fundamental Breach of Contract
discusses the differences Under The UN Convention On The International Sale Of
between force majeure, Goods’ (CUP 2010)
frustration of contract, Caslav Pejovic, CIVIL LAW AND COMMON LAW:
hardship and breach – TWO DIFFERENT PATHS LEADINGTO
these being the chief THE SAME GOAL
types of non- DiMatteo, Larry A, ‘International Sales Law : A Critical
performance. What are Analysis of CISG Jurisprudence’ (CUP 2005) 151
the rights and liabilities DiMatteo, Larry A, ‘International Sales Law : A Critical
of the parties when one Analysis of CISG Jurisprudence’ (CUP 2005) 132
party fails to perform? DiMatteo, Larry A., ‘International Sales Law : A Global
The answer to this Challenge’ (CUP 2014) 237.
question depends on the Grebler, Eduardo, ‘Fundamental Breach of Contract Under
law that will govern the the CISG: A Controversial Rule’ (CUP 2007)
dispute.
Michael A. Schmitt; Bruce A. Wollschlager, Section 2-615
Commercial Impracticability: Making the Impracticable
Practicable, 81 Com. L.J. 9, 16 (1976)
Michael Bridge, Avoidance for Fundamental Breach of
Contract under the UN Convention on the International Sale
of Goods, 59 Int'l & Comp. L.Q. 911 (2010)
NDUBUISI AUGUSTINE NWAFOR, Comparative and
Critical Analysis of the Doctrine of
Exemption/Frustration/Force Majeure under the United
Nations Convention on the Contract for International Sale of
Goods, English Law and UNIDROIT Principles (2015)
Ndubuisi Augustine Nwafor, The Comparative and Critical
Analysis of the Doctrine of Exemption/ Frustration/ Force
Majeure under the United Nations Convention on the
Contract for International Sale of Goods, English Law and
UNIDROIT Principles, A Thesis Submitted to the School of
Law, University of Stirling for the Degree of Doctor of
Philosophy (PhD) 1, 1-292 (2015).
Thomas Black, Sales Contracts and Impracticability in a Changing
World, 13 St. Mary's L.J. 247, 290 (1981)
8. MODULE 5: PRODUCT CALLIESS ROME REGULATIONS Commentary 443- 759 (2 nd
LIABILITY. Edition)
John Ahern & William Binchy, ‘The Rome II Regulation on the
In some situations, the
Law Applicable to Non-Contractual Obligations, A New
use of a defective or
International Litigation Regime’
dangerous product can
result in injuries. This is Reid Mortensen, Richard Garnett, Mary Keyes, ‘Private
known as ‘product International Law in Australia’, (3rd edn) pg. 17.1-17.53; 18.1-
the role of existing Conventions’, 5 Unif. L. Rev. n.s. 85, 120 (2000)
goods. In particular, it
discusses the provisions
of the United Nations
Convention for the
International Sale of
Goods (CISG). In what
circumstances does it
apply? To what extent
do its provisions
displace domestic law?
What is its relation to
other international
instruments in the field?
How are its provisions
interpreted in case of
ambiguity?
prerequisites of the law Plausible Benefits for the Development of the Indian Private
of the country where it International Law’, Commonwealth Law Bulletin (2018) 44 (3),