International Sale of Goods

International sales necessarily raise certain questions that domestic sales may not. Who is responsible for arranging transportation? Which party bears the risk of loss of or damage to the goods at various stages of the journey and who has responsibility for procuring appropriate insurance cover? What will be the method of payment? What is the impact of unexpected extraneous events, such as an earthquake or the outbreak of war?

Most international sales incorporate one of a number of standard models for the allocation of rights and responsibilities between seller and buyer. These models have been the subject over considerable time of elaboration by national law and also of consideration by the International Chamber of Commerce in Incoterms 2000.

Many international sales, however, are concluded on the basis of standard forms prepared by London-based trade associations such as the Federation of Oil Seeds and Fats Association (FOSFA) and the Grain and Feed Trade Association (GAFTA).  These forms provide for arbitration in London and for the application of English law as the proper law of the contract, even if there is no real factual connection between the parties or the contract and England. In consequence, there is a wealth of English case law dealing with international sale contracts.

The CISG represents a major attempt to promote trans-national commercial law. It represents a compromise between common law and civil law thinking on international sales law. The Convention has been widely ratified and case law on the Convention from around the world is available electronically. Nevertheless, it is far from a dominant source of law on international sales, but it merits study and comparison with national law.