![]() We recommend taking an active decision on whether to include or exclude the CISG, as this will affect the parties’ rights and obligations in a dispute. On the contrary, the CISG will regularly apply to exports of Swiss companies. The choice of “Swiss law” as the governing law will not lead to the exclusion of the CISG. ![]() It is often ignored that the CISG is considered part of the national law of Switzerland and will apply automatically if not excluded. Please click herefor a list of cases where the CISG would in principle apply. the goods that are subject to the agreement are acquired for business purposes and not for personal use.contracts in which the main obligation of the party who furnishes the goods consists in the supply of labour or other services,Īre not typically considered as “contracts of sale” under the CISG (but single contracts of sale under a master distribution agreement will be covered by the CISG) and.Also considered as “contracts of sale” are contracts for goods to be manufactured or contracts for supply of goods and services if the main obligation is the supply of goods. “Goods” are moveable and tangible objects at the time of delivery. the arrangement qualifies as a “contract of sale”, meaning a contract directed at the exchange of goods in consideration for the price.Indications beyond the wording of a choice of law clause are required to assume the exclusion of the CISG and Likewise simply excluding the application of conflicts of laws rules does not exclude the application of the CISG. Note that a choice of law clause designating the national law of a Contracting State as the governing law without further specification will not lead to the exclusion of the CISG, as the CISG is part of that national law. the parties have not excluded the CISG.the rules of private international law lead to the application of the law of a Contracting State to the CISG and.the states of the places of business of the parties involved are Contracting States to the CISG at the time of the conclusion of the contract, or.the parties have their places of business in different states at the time of conclusion of the contract, and either.Matters not covered by the CISG will be governed by the applicable national law. For example, the CISG does not contain rules on the statute of limitations, validity of contract or procedural law. It must be borne in mind that even if the CISG applies to a contract, it does not cover all matters. The rationale for this is the high cost associated with the reversal of a transaction for distance sales contracts. Furthermore, the threshold for assuming a fundamental breach of contract and with that the possibility to declare an avoidance of contract is higher than under Swiss law. ![]() For instance, the period for the notification of defects of goods by the buyer is in general longer under the CISG than under Swiss law. It contains rules to address the distance sales of goods. The CISG is a compromise of different national legal systems with the goal to remove the legal barriers in international trade. Currently there are 89 Contracting States, among them important trading partners of Switzerland such as China, Italy, France, Germany, Japan and the US, however not the UK. The CISG is considered part of the national law of countries which are Contracting States to the CISG.
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