• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.69
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• pp.127-151
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• 2016

UNIDROIT Principles of International Commercial Contracts(PICC) was published in 1994. PICC has been functioned as a guideline of international commercial contracts, an applicable law to govern a contract by the agreement of the parties to a contract, general principles of law and lex mercatoria. In addition, PICC has a role of interpreting or supplementing international uniform law instruments as well as domestic laws, and also has served as a model for national and international legislations. PICC has been accepted as a authoritative source of knowledge of international trade usages of international commercial contracts to the arbitral tribunal rather than domestic court because it excluded the characteristics of hard law at the drafting stage. This article dealt with the rule on gross disparity of validity which fall outside the scope of UN Convention on Contract for the International Sale of Goods(CISG), which has obtained a leading legal position of uniform law in international sales of good. In other words, PICC suggests a series of meaningful solutions to the issue of gross disparity of contract which is the most complicated among legal disputes occurring during the process of conclusion of contact and also extremely different and diverse between legal systems. This article covered the issue of gross disparity of contract at the conclusion of contact and suggested the legal basis of several rules related to the gross disparity by analysing gross disparity rule of PICC. Furthermore, this article suggested legal check points or implication as well as interpretation and evaluation on doctrine of laesio enormis and undue influence or unconscionability. This article also dealt with a comparative analysis with Principles of European Contract Law(PECL) and Common European Sales Law(CESL) which have important legal positions in the area of international commercial contract as well as in terms of close relationship to PICC by linking with recent court or arbitral tribunal rulings.

• Korea Trade Review
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• v.44 no.6
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• pp.1-21
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• 2019

In the case of a sea transport contract, the decision of the governing law, together with the choice of lex fori, shall be a legal issue in all legal disputes involving damage to the goods. In sea transport contracts, a paramount clause is often established in conjunction with the governing law clause, which can lead to conflict between these two clauses. Most B/L's back clauses contain a paramount clause that provides that the Hague Rules, Hague-Visby Rules, or foreign laws that prevail over other provisions of the terms. The Hague Rules and the Hague-Visby Rules, however, set different standards regarding the extent of the sea carrier's liability. Therefore, in the interpretation of ground conditions, it is an important question whether the Hague Rules or the Hague-Visby Rules are applied or whether each rule is applied as a law. For example, the paramount clause in the Superior Pescadores case was problematic in the interpretation of the term 'Hague Rules.' In this case, the English Court held that the expression 'Hague Rules' could be used to mean the Hague-Visby Rules, and not exclusively the Hague Rules. Therefore, the Hague-Visby Rules were applied in the judgment of this case, which suggests that this case can be a valuable precedent in future legal matters.

• International Commerce and Information Review
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• v.19 no.3
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• pp.215-235
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• 2017

The United Nations Convention on Contract for the International Sale of Goods(CISG) is legislated for unified of international sale of goods, but does not cover all concerns related to that. Arilce 4 provides the exclusions of CISG. These exclusions might be govern by a domestic law. This paper analyses what are excluding under CISG Article 4, and then provides the Korean and Chinese domestic regulations related to them. At first, whether some issues are excluding based on the interpretation of CISG Article 4 depends on the agreement of parties concerned. An issue that a national law applies even might be invalid if it does not follow the general principles of CISG. In Conclusion, CISG does not cover the validity of the contract and the property in the goods sold under CISG Article 4. a company who trades with Chines company should understand the differences of both countries' regulations about the validity of the contract and the effect of property transfer and be careful to decide a govern law to avoid unnecessary disputes about these issues even though their contract is govern by CISG.

• Journal of Arbitration Studies
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• v.32 no.4
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• pp.33-51
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• 2022

According to the CISG, there are no special regulations for a reasonable period of time among the obligations to notify the contractual suitability of the goods. As a result, many disputes arise in 'notification within a reasonable period' despite being the most important treaty in practice in defining the obligation to notify nonconformities according to the suitability of goods for each case. Regarding the interpretation of Article 39 of the CISG, various judgments and arbitration decisions are being made in each country for a reasonable period to notify that the goods are not suitable for the contract.There are criticisms that these various views are too harsh on the buyer in the buyer's obligation to notify.It is important to create a unified principle because courts or arbitration agencies of the Contracting States of this Convention interpret in various ways the reasonable period of violation of the contract of goods stipulated in the Convention. Since most of the international commodity trading transactions around the world are regulated by the CISG, it is necessary to analyze and interpret cases in which this Convention is applied in court or arbitral tribunal of each country to derive a unified principle.

• Journal of Arbitration Studies
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• v.27 no.4
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• pp.91-113
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• 2017

UN Convention on International Sale of Goods (CISG) and International Commercial Arbitration aim at the promotion and facilitation of international trade. Both of them share similar general principles; i.e., party autonomy and pacta sunt servanda. Also they are often applied concurrently in the case of the international commercial trade. The purpose of this article is to investigate whether the CISG could apply the formation of the arbitration clause that is included in the main contract governed by CISG. Sellers and buyers have freedom of designating choice of law that is applied to their contracts. An international arbitration agreement is presumed to be separable from the contract in which it is found. However, arbitration clauses commonly form part of a general contract. Thus, the CISG is intended to be applied to dispute resolution clauses, including arbitration clause even if it is not completely suitable. Notably, there is a fundamental distinction between the CISG and arbitration. The CISG abolished the formalities of contract. New York convention requires Contracting States' Courts to enforce written international agreements to arbitrate.

• Proceedings of the Korean Institute Of Construction Engineering and Management
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• autumn
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• pp.11-16
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• 2001

The purpose of this study is to examine contract management method with regard to Direct Payment of Subcontract Payment outlined in Article 14 of The Fair Trade Subcontract Transactions Act. The literature research and deductive demonstration are adopted as research method. And the findings of this study are as followed. (1) The study has shown the closer interpretation on the legal condition and the impact of Direct Payment of Subcontract Payment. (2) The study has revealed the solution for the questions concerning Direct Payment of Subcontract Payment by exploring and demonstration. (3) The study has suggested contract management method for contractual parties with respect to Direct Payment of Subcontract Payment.

• Journal of Arbitration Studies
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• v.21 no.1
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• pp.131-155
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• 2011

PICC executes its role as a useful lex mercatoria in the continuously increasing international trade to be adopted as the standard criterion of prevention or dispute resolution. When considering the fact that GISG has not presented results beyond expectation in the past due to hard laws and legal deficiency, PICC, which possesses interpretation and supplementation function, is considered undoubtedly useful particularly in international commercial arbitration. As observed in the previously mentioned analysis on cases accumulated in UNILEX, PICC application and Arbitral tribunal in international contract between parties possess considerably large claim possibility and the number of actual application cases is continuously increasing. The fact that PICC has been composed as maximum common measures of continental and common law systems by traditional comparative legal scholars familiar with international trade can function as the fundamental principle in future global trade activity and can also act as the model law for uniting contract laws of nations. In this aspect, PICC can be evaluated to have considerably achieved enactment purpose of previous intention. However, additional topics that had not been accepted in the revised edition of PICC remain as assignments requiring solution, such as analysis and acceptance problem of comparative law, PR of PICC unfamiliar even to the relative parties of international trade and application in international contract, and absorption problem as model law in various domestic laws.

• Journal of the Korea Institute of Building Construction
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• v.9 no.5
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• pp.103-110
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• 2009

A construction project consists of a variety of contracts for the completion of work. The large number of contracts involved in a single project increases the likelihood that disputes will arise between the parties involved regarding the terms of service. Actually, there are many disputes that are caused by a change 0 order. While such disputes should be settled by interpreting the terms stipulated in the agreement entered between the two parties, the process of dispute settlement is often restricted to arbitration and lawsuit, and as a result the parties tend to avoid it due to its inefficiency. For this reason, in Korea it is hard to find cases of interpreting terms of service, while in the U.S. it is easy to find diverse cases of interpreting terms of service, since there is a process of dispute settlement by each stage by the party who has placed an order. Therefore, this study presents analysis of case studies of contract changes, looking specifically at changes in the scope of the work, changes in quantity, changes in the period of implementation, changes in the method of implementation or attitude, changes in items provided by the government or the delivery place, and the acceptance of such change procedure by a contractor, and the adjustment of a reduction.

• Korea Trade Review
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• v.43 no.4
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• pp.27-50
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• 2018

This study focuses on the judgement of Seoul High Court' regarding the formation and performance of contracts applying the CISG. The purpose of this study is to provide legal understanding to contracting parties involved in contract for the international sale of goods that can be considered in raising the understanding of the CISG within the scope of the subject. This study aimed at the legal validity of judgments, the defects in reason for judgments and legal standards that could be established. The main contribution of this study is summarizing the facts of judgments and arguments of the parties and furthermore, in accordance with the order, the judgment order of the court and the decision criteria of the application law, the CISG articles comment and interpretation on the formation of the contract, legal bases of fundamental breach of contract, termination of contract, concurrent fulfillment and other supplementary matters and so on.

• 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.