United Nations Convention on Contracts

United Nations Convention on Contracts

The United Nations Convention on Contracts for the International Sale of Goods (CISG) is a treaty that sets out a uniform framework for the formation and performance of contracts for the sale of goods between parties in different countries. The CISG was adopted by the United Nations in 1980 and has been ratified by 89 countries, including the United States, the United Kingdom, Canada, Australia, and the UAE. 

The CISG applies to contracts for the sale of goods between parties whose places of business are in different countries, provided that the countries are both contracting states (i.e., countries that have ratified the CISG). The CISG does not apply to contracts for the sale of services or to contracts for the sale of goods that are to be manufactured or produced specifically for the buyer.

The CISG sets out the rights and obligations of the parties to a contract for the international sale of goods, including the obligations of the seller to deliver the goods and transfer ownership to the buyer, and the obligations of the buyer to pay the price and take delivery of the goods. The CISG also provides for the resolution of disputes that may arise under the contract, including the availability of damages for breach of contract and the possibility of avoidance (cancellation) of the contract in certain circumstances.