• Title/Summary/Keyword: Conformity of Goods with Contract

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A Comparative Study on the Seller's Duty to Deliver the Goods in Conformity with the Contract in the Sale of Goods (국제물품매매거래에서 매도인의 계약적합성물품 인도의무에 관한 비교연구)

  • Oh, Won-Suk;Lee, Byung-Mun
    • THE INTERNATIONAL COMMERCE & LAW REVIEW
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    • v.37
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    • pp.3-33
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    • 2008
  • This study primarily concerns the seller's duty to deliver the goods in conformity with the contract under the United Nations Convention on International Sale of Goods(1980) in comparison with the Draft Principles of European Sales Law. It describes and analyzes the provisions of the CISG as to the seller's duty, focusing on main controversial issues among scholars in their application. It also attempts to compare the rules of the CISG with those of the Draft PESL and to evaluate them in light of the discipline of comparative law. This is for the purpose of facilitating the systematic development and reform of one jurisdiction by any solution from the other jurisdiction found by the comparative study. In addition, this study provides legal and practical advice to the contracting parties when they intends to insert the CISG or the Draft PESL in their contract as a governing law. The comparative study particularly focuses on the following aspects; first, requirements for conformity with the contract which deals with the concept of conformity with the contract, contractual requirements agreed between contractual parties, and implied requirements otherwise not agreed between contractual parties, second, the time when the goods must be in conformity with the contract, third, exclusions of the seller's duty to deliver the goods in conformity with the contract.

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A Study on the Conformity of the Goods under International Sale (국제물품매매에서 물품의 계약적합성에 관한 연구)

  • OH, Hyon-Sok
    • THE INTERNATIONAL COMMERCE & LAW REVIEW
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    • v.66
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    • pp.25-46
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    • 2015
  • The purpose of this paper is to provide a legal implication about conformity of goods in the international commercial transactions. There are so many legal relationship after the formation of contract. The most of important thing among the obligations of seller is to provide conformal goods which are of quantity, quality and description required by the contract and which are contained or packaged in the manner required by the contract. If seller violate above duties, seller take the warranty liability. However, CISG describe the conformity of the goods instead of the warranty as follows. First, CISG Art.35(1) states standards for determining whether goods delivered by the seller conform to the contract and Art.35(2) describes standards relating to the goods' quality, function and packaging that, while not mandatory, are presumed to be a part of sales contracts. Article 35(2) is comprised of four subparts. Two of the subparts (article 35(2) (a) and article 35(2)(d)) apply to all contracts unless the parties have agreed otherwise. Second, CISG Art.36 and 38 deals with the time at which a lack of conformity in the goods must have arisen in order for the seller to be liable for it. If seller lack of conformity becomes apparent only after that time, seller is liable for a lack of conformity existing when risk passed to the buyer. Third, CISG Art.49 describe that a buyer who claims that delivered goods do not conform to the contract has an obligation to give the seller notice of the lack of conformity. The most of important things about CISG articles and precedents is that buyer is aware of the lack of conformity and notice it to seller. Failure to satisfy the notice requirements of article 39 eliminates a buyer's defence, based on a lack of conformity in delivered goods, to a seller's claim for payment of the price. Consequently, parties of contract had better agree to the notifying times about lack of conformity. Also, If seller fined the non-conformity, seller has to notify this circumstance to the buyer within short period or agreed time.

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A Comparative Study on the Conformity of Goods in the Contracts for International Sale of Goods - focused on comparing CISG with SGA (국제물품매매계약에서 물품적합성에 관한 비교연구)

  • Oh, Won-Suk;Min, Joo-Hee
    • THE INTERNATIONAL COMMERCE & LAW REVIEW
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    • v.51
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    • pp.79-99
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    • 2011
  • This study describes the seller's duty to deliver the goods in conformity with the contract. The purpose of this study is twofold: to analyze the seller's principal duty, comparing the United Nations Convention on the International Sale of Goods(CISG) with Sale of Goods Act(SGA) and to provide legal and practical advice to contracting parties who consider CISG or SGA as a governing law. This paper first considers the requirements for the conformity with the contract, which means contractual requirements agreed between parties and implied requirements not agreed between parties. Following this, the exclusion of the seller's duty to deliver the goods required by the contract is described. Finally, this paper ends up giving contracting parties legal and practical advice.

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A Comparative Study on the Seller's Duty to Deliver the Goods in Conformity with the Contract (국제물품매매계약상 물품의 계약적합성 의무에 관한 비교 연구)

  • Lee, Byung-Mun
    • Korea Trade Review
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    • v.42 no.6
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    • pp.1-25
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    • 2017
  • This is a comparative and analytical study which comprises of the analysis of the rules of the seller's liability for non-conforming goods of four legal systems under the CISG and the CESL. A purpose of this study is to examine all the rules as to, first, the concept and the nature of the seller's duty to deliver the goods in conformity with the contract, second, the contents of the seller's duty to deliver the goods in conformity with the contract, third, the time when the goods must be in conformity with the contract and the cases where the seller is exempted from his liability for non-conforming goods. Another purpose is to compare the rules of the CISG with those of the CESL, and to evaluate them in light of the discipline of comparative law. This is for the purpose of facilitating the systematic development and reform of one jurisdiction by any solution from the other jurisdiction found by the comparative study. In addition, this study provides legal and practical advice to the contracting parties when they intend to use one of those regimes in their contract as a governing law.

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The Rules of Law on Warranty Liability in Contracts for the International Sale of Goods - With Special Reference to CISG - (국제물품매매계약에 있어서 하자담보책임에 관한 법리 - CISG를 중심으로 -)

  • Hong, Sung-Kyu
    • Journal of Arbitration Studies
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    • v.24 no.4
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    • pp.147-175
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    • 2014
  • In contracts for the international sale of goods, a seller must deliver appropriate goods and hand over relevant documents according to a contract, which will transfer the ownership of the goods to a buyer. In this case, if there are defects in the contracted goods, the warranty liability will occur. However, in the United Nations Convention on Contracts for the International Sale of Goods (CISG), a term-the conformity of the goods to the contract-is used universally instead of the warranty. According to the CISG, a seller must deliver goods in conformance with the relevant contract in terms of quantity, quality, and specifications, and they must be contained in vessels or in packages according to the specifications in the contract. In addition, a certain set of requirements for conformity will be applied implicitly except when there is a separate agreement between parties. Further, the base period of conformity concerning the defects of goods is the point when the risk is transferred to the buyer. A seller shall be obliged to deliver goods that do not belong to a third party or subject to a claim then, and such obligations shall affect the right or claim of a third party to some extent based on intellectual property rights clauses. If the goods delivered by the seller lack conformity, or incur right infringement or claim of a third party, then it shall be regarded as a default item per the obligation of the seller. Thus, the buyer can exercise diverse means of relief as specified in Chapter 2, Section 3 (Article 45-Article 52) of the CISG. However, such means of relief have been utilized in various ways for individual cases as shown in judicial precedents made until now. Contracting parties shall thus keep in mind that it is best for them to make every contract airtight and they should implement each contract thoroughly and faithfully to cope with any possible occurrence of a commercial dispute.

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Disputes on the Application of National Compulsory Law in International Sale of Goods under CISG - with a special reference to Case Law for Non-compliance - (CISG적용 국제물품매매에서 국내 강행법분쟁에 관한 연구 - 물품불일치 분쟁사건 판례를 중심으로 -)

  • Hahn, Jae-Phil
    • Journal of Arbitration Studies
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    • v.19 no.1
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    • pp.147-169
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    • 2009
  • This paper deals with disputes incurred from the CISG provisions in relation with the conformity of goods with a view to finding the general way of approach made by the court and arbitration tribunal in the case laws for the interpretation of CISG based on 6(six) cases thereon. Throughout this study, it has been noted that the German Supreme Court devoted most in creating the general principle of CISG interpretation in relation with national compulsory law of regulation applicable on the conformity of goods. It was New Zealand mussels case in which the German supreme court decided that the exporting country's compulsory law of regulation would be applied in determining the conformity of goods. Furthermore, German supreme court added that CISG does not place an obligation on the exporter to supply goods, which conform to all statutory or other public provisions in force in the import state unless the same provisions exist in the export State as well, or the importer informed the exporter about such provisions existing in the import state, or the exporter had knowledge of the provisions due to special circumstances. It is stipulated in CISG that the goods conform with contract if they are fit for the purpose for which goods of the same description would ordinarily be used. When questions arise concerning matters governed by the CISG that are not expressly defined in the CISG, the question is to be settled in conformity with general principles on which the convention is based. Only when such a general principle cannot be found may the tribunal turn to other sources such as UNIDROIT Principles, Principles of European Contract Law and Lex Mercatoria, etc. Interpretation of CISG should be autonomous, in the sense that it should not depend on principles and concepts derived from any national legal system. Even where a CISG rule is directly inspired by domestic law, the court should not fall back on its domestic law, but interpret the rule by reference to the CISG with a view to its international character and to the need to promote uniformity in its application and the observance of good faith in international trade.

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A Comparative Study on the Documentary Conditions of International Trade Transaction (국제무역거래에서의 서류조건에 관한 비교연구 - Incoterms(R) 2010규칙과 UCP 600규칙을 중심으로 -)

  • Sin, Jung-Sik
    • THE INTERNATIONAL COMMERCE & LAW REVIEW
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    • v.54
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    • pp.99-122
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    • 2012
  • According to the United Nations Convention on the International Sale of Goods, the Seller must deliver the goods, hand over any documents relating to the them and transfer the property the to the goods as required by the contract, and buyer must pay the price for the goods and take delivery of them as required by the contract. In particular, the seller provides the documents is important. If the documents are discrepancies in credit, the beneficiary may not receive the payment. So It is important to study on conditions of documents in international trade. Documents provided by the seller shall be determined by express terms. If there is no agreement on the express terms, it shall be determined by the implied terms or governing law terms. In practice Seller shall provide the documents are as follows, For example, transport documents, commercial invoice, certificate of origin, insurance policy, packing list, inspection certificate etc. As stated above if it can not be determined by express terms, it is determined by the implied terms. In international trade, leading to the implied terms is incoterms(R) 2010 and UCP 600. Incoterms(R) 2010 define the seller must provide the goods and the commercial in conformity with the sales contract and any other evidence of conformity that may be required by the contract and UCP 600 are rules that apply to documentary credit. This paper, the practical utility between Incoterms(R) 2010 and UCP 600 is studied.

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A Study on the Time of Examination of Buyer in Contract for International Sale of Goods (국제물품매매계약(國際物品賣買契約)에서 매수인(買受人)의 물품검사시기(物品檢査時期))

  • Oh, Won-Suk
    • THE INTERNATIONAL COMMERCE & LAW REVIEW
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    • v.20
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    • pp.63-82
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    • 2003
  • The time of examination of buyer in international sales contract is very significant, because the time is related with the period of claim in buyer's aspect. From the legal point of view, the time of delivery, the time of examination and the time of quality decision should be in accord. But the buyer, whose main place of business is located in importing country, wants to examine the goods in his own country. Therefore in CIF or FOB Contract, the place of delivery and the place of examination are divided. Thus the CISG, the Common Law System and the Civil Law System including Korean Law stipulate the buyer's examination at the destination if the sales contract involves carriage of the goods. This author, from the buyer's perspective, would like to make the following suggestions in regard to the time of examination when the sales contract is made. First, the time of examination and the time of quality decision should be in accord, even though the time of delivery is different. Second, the buyer should clearly indicate the time, the place, the inspector, the particulars and the burden of proof in regard to examination when contracting. Third, the buyer should also clearly indicate the period of notice for the lack of conformity in Claim Clause of sales contract, which should be counted from the time of examination. Fourth, the buyer should remember that he many lose the right to rely on the lack of conformity of the goods if he does not give the seller notice thereof within the stipulated time or reasonable time. Finally, if the buyer wants, to examine the goods at the place of shipment, it is desirable for the buyer to designate internationally recognized inspection organization like SGS.

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A Study on the Seller's Delivery Obligation in the International Sale of Goods - Focused on the CISG, Incoterms, Chinese Contract Law, Korean Civil Code - (국제물품매매에서 매도인의 인도의무에 관한 연구 - CISG, Incoterms, 중국 합동법, 한국 민법을 중심으로 -)

  • Hyeong, Ak-sim;Park, Sung-ho
    • Korea Trade Review
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    • v.42 no.2
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    • pp.29-52
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    • 2017
  • This research employed a comparative legal analysis to explore the rules of CISG, Incoterms 2010, Chinese Contract Law, and Korean Civil Act with precedent researches and present customs in the international sale of goods. The results of this study show that there are some differences in the provisions of seller's delivery obligation to those regulations, such as the time and place of delivery goods, the conformity of goods on the contract, and delivery of documents. Therefore, the parties of contract, especially between Korean and Chinese traders, must be aware of the differences in the provisions of those selected regulations in order to reduce disputes between them, out of or in relation to or in connection with their sales contract.

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A Study on the Seller's Obligation of Conformity of Transport Documents in Shipment Sales under CISG - Focused on Bill of Lading (해상송부매매에서 국제매매협약상 매도인의 서류적합의무에 관한 일고찰 - 선하증권을 중심으로 -)

  • Hur, Hai-Kwan
    • THE INTERNATIONAL COMMERCE & LAW REVIEW
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    • v.37
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    • pp.61-85
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    • 2008
  • Bills of lading are crucial in international sales on shipment terms since they guard buyers against loss of or damage to the goods in transit by giving them the rights against carriers. A bill of lading, as document of title, gives the buyer the right to demand physical possession of the goods from the carrier and enables the buyer who is in possession of damaged or short-delivered goods to sue the carrier. In this context the buyer in sales on CIF or CFR terms or FOB terms with additional services benefits from the bill of lading which functions as a receipt of goods and a evidence of the terms of the contract of carriage. Protection of such buyer's interests can be provided in the sale contract through appropriate express or implied terms on the seller's documentary obligations: Which transport document, a bill of lading or a sea waybill, is required? Who should be named as the consignee in the transport document and, in case of bill of lading, by whom should the bill be endorsed? What should be stated in the bill of lading for the quantity of the goods? How about a bill of lading that contains so called "unknown clause"? How many bills of lading for the entire contract goods should be tendered? Can a bill of lading stating that the goods have been shipped in apparent good order and condition also state that the goods were damaged after shipment? This paper seeks to provide answers for these particular questions.

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