International Contract of Sale of Goods was designed in order to harmonize the laws to be followed when carrying out any international commercial activities. This paper seeks to prove whether international laws assist or mar the progress of international trading activities. It is organized into different sections. The introduction offers some background information on the issue at hand. The literature review studies the ideas of different authors regarding the concept under study. The results and analysis section provides a summary of the key points of the research. The paper used content qualitative or thematic analysis in order to acquire relevant data. From the analysis, it is assumed that modern international law is highly significant for any business because it is simple, clear, and easy to understand and apply. In addition, it follows harmony and neutrality in treating all people. Furthermore, buyers and sellers are equally considered without any issues being skewed in favor of one of them. Significantly, the unified international commercial laws offer a harmonious platform that can be used by any party that would like to be engaged in trading activities across the whole world.
International Contract of Sale of Goods
The world is full of diversity when it comes to carrying out different activities. Commercial activities are not an exception, especially, in terms of cross-border business undertakings. One of the challenges that can be faced in such instances is the fact that solving disputes becomes a considerable problem since the parties may neither belong nor share a similar culture. Despite the fact that every region has developed a peculiar way of carrying out the business, there are many advantages that can be earned by utilizing the diversity and coming up with the uniform rules and regulations that everyone can use when doing business with people from any other region of the world. Any contract is a kind of agreement between two or more parties promising to do or not do various acts, which are usually specified either orally or in writing. An International Contract considers different foreign elements; that it accommodates law systems of different countries. In a contract, every party acquires a legal duty and a right to seek a remedy in the case duty is breached by another party. The paper tries to prove why it is necessary to have an international contract when it comes to the sale of goods in the cross-border environment.
In the modern world, business transactions, which are carried out internationally, become subject to the International Contract. The International Contract contains objectives and commitments, which are expected to be followed by all parties that are involved, as well as various terms, which are supposed to govern all transactions. When different parties that come from different countries agree to a contract, their activities are governed according to the laws of international contracts. The only exception is if the involved parties choose to carry out their activities based on the laws of one country, which is also a part of the contract.
In some instances, international sales of goods were not standardized, unified, and harmonized in terms of the rules and principles of international trade, applied by individual nations. Some efforts have been made in order to develop and implement some rules and regulations that would be uniform and would fit the international trade. In the past, there many laws that were offered; they were expected to assist in creating harmonious relationships in sales by integrating the laws in individual countries (Atiyah, Adams, & MacQueen, 2005). Sometime later, these rules proved to be non-beneficial. The conflicts in terms of international trade and contracts would be unresolved in most cases. It is because of the introduction of the CISG in 1980. It created an important springboard for resolving international business disputes. The creation of the law not only assisted in governing international trade but also affected domestic sales and trade, as well (Sealy & Hooley, 2009).
There are many arguments that are raised forward as to whether the International Contract of Sale of Goods should be upheld or abandoned. Despite the fact that there are some flaws in the existing International Contract of sale of goods, this research paper argues that the International Contract of Sale of Goods is greatly feasible in the modern world.
Bonell (2008) argues that, since the merchant law was created, there have been a number of laws to regulate the trade between different businesses that existed in different countries. The necessity of such laws came about due to the growth of across-the-borders business relations. The main purpose of the International Contracts is to come up with modern regimes, which are uniform and present fairness in contracts when it comes to the sales of goods made internationally (Guzman, 2008). Consequently, it shows that international contracts contribute to the introduction of certainty in a significant way when it comes to commercial exchanges, as well as reducing the incurred costs when carrying out a transaction.
Why the International Contract Is Relevant
A contract for carrying out sales is a backbone of all trading activities carried out by countries internationally (Bonell, 2008). It acts is despite the existence of diverse law traditions in the involved countries and differences in the level of economic development. For this reason, the international contract is an imperative component while carrying out international trade and needs to be adopted. The International Contract, which relates to the sale of goods, came about as a result of the efforts of legislation implemented overtime.
The text that resulted from the efforts of legislation gives a watchful balance of interests held by buyers and those by sellers. Guzman (2008) argues that the existence of the International Contract has led to the introduction of the law of contract reforms in many countries at the national level. When the International Contract was adopted, it came up with modern regimes, which were uniform and presented fairness in contracts when it comes to the sales of goods made internationally; they are to be applied when any sale contracts are concluded among given parties.
The International Contract then applies directly; hence, it helps avoid a necessity to recourse to the existing rules that relate to private international laws and determine the law that is applicable to a given contract (Antris, & Rossi-Hansberg, 2008). Consequently, it adds certainty and improves the level of prediction of sales contracts internationally. Moreover, the International Law may be applicable in a form of contract when sales are made internationally with rules held by the private law pointing at contracting the state law being most applicable.
The International Contract is applied regardless of any difference in scenarios, such as various locations of the businesses of the involved parties. The International Contract comes into play when such a scenario is prevalent and provides rules, which are easy to accept in terms of the transnational nature, and offers a large availability of resources for the interpretation. The International Contract bridges a gap for both small and large enterprises.
Small enterprises and traders who operate from developing countries have less accessibility to advise with regards to the law when it comes to the matters of negotiating contracts. It makes small enterprises and traders more vulnerable when it comes to problems, which are caused by an inadequacy in the treatment by the contract on issues, in terms of applicable law. Such traders and small enterprises might end up as weaker parties in the contract if the International law had not existed. It means that in such a case, traders would have experienced difficulties when ensuring that a balance in the contract is maintained.
International Contracts Governing Selling of Goods
There were several sets of rules that were created by the United Nations and that would assist as guiding principles while carrying out international trade; buying and selling of goods. Here, the laws are named as the CISG, the standard laws that guide international trade. The current international law concerning the efficient sales of products was first passed in 1979 (Bridge, 2013). At this point, it was referred to as The 1979 Act (Bernard, 2007). Some of the most important articles in the law are those from the article 31 to article 52. They are believed to create the second chapter of the international laws. In fact, there are various aspects that are worth considering especially when it comes to the depiction of international laws concerning the sales of products.
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First, article 32 of the CISG tries to govern the manner, in which a seller should conduct himself or herself when delivering products. Here, a seller should be able to design the most suitable logistics and carriage procedures to be used in order to increase the trustworthiness during the process of delivering products. For instance, the first section of this article, 32(1), tries to make the seller more responsible and abide by the rules whenever delivering the goods to the end-buyer (Bridge, 2013). Such goods should be properly and easily identifiable by the use of important methods such as marking and providing relevant documents. Contrarily, a seller should also be willing to mention and inform a buyer about any significant issues related to the actual agreement and contract (Ferrari, 2012). Many scholars have identified that most contracts that govern the sales of goods in the international arena contain specific and stringent measures and provisions. The article 32(2) also tries to describe the seller’s conduct especially with regard to the arrangement of the products’ transportation. Briefly, the article is very important in monitoring whether the products were actually delivered to the intended buyer or not (Fredrick, 2007). The following article, 32(3), requires the seller to relinquish any information that he or she may hold to the buyer especially concerning the insurance of goods (Lookofsky & Bernstein, 2008). In fact, the buyer should be ready to make it an own duty to provide the provision of the insurance procedure concerning the goods that he or she is selling.
There is an extension of the above-mentioned provisions in section 32(1) that was introduced in The 1979 Act. The article refers to a similar subject as compared to another CISG article called 31(a). The article confers that the delivery of goods is assumed to have taken place at the moment the seller hands them over to the preferred carrier. In such an instance, the carrier is given the responsibility of delivering the products to the buyer. Nonetheless, this rule cannot be applied in the case the buyer is identified to be the final consumer. On the other hand, sections 32(2) and 32(3) are deemed identical especially concerning the CISG (Lookofsky & Bernstein, 2008). At this juncture, the two sections demand that the overall responsibility of providing all important information concerning the good is to be provided by the buyer prior enough. As such, the move will enable the seller to ensure the good whenever necessary before sending it to the buyer. Moreover, the CISG section 29(6) prescribes that the seller should arrange, as well as pay, for the good that is to be delivered to the buyer (Ferrari, 2012). However, the seller must enter into an agreement with the person that is supposed to carry these goods to the buyer.
Despite this fact, it is crucial to note that there exist differences between the 1979 Act and the CISG provisions. In most cases, such differences may be depicted especially when it comes to the English laws. At this juncture, the section 31 concerning the CISG points out that there exists a default between the frameworks of the CISG law (Ferrari, 2012). The sale’s contract remains silent when it comes to the delivery of goods, especially in the instance where there is no actual fixation of the delivery place. On the other hand, the overall responsibility for ensuring that the goods are delivered safely is passed over to the carrier before they are delivered to the final buyer (Ferrari, 2012). However, in the case such goods are manufactured at a certain point and time, they do not require any form of transportation. Here, the buyer will be deemed to be in the possession of the goods upon inquiring for them.
However, section 29 concerning the 1979 Act holds a different opinion especially concerning where the business is conducted (Lookofsky & Bernstein, 2008). Moreover, the law claims that there must be some adherence to the time especially when it comes to the delivery of products. In this case, the seller is supposed to deliver goods on time (Bridge, 2013). Unlike the 1979 Act provisions, the CISG does not have any equivalent or provision that addresses the issue (Ferrari, 2012). As a result, the CISG is considered highly effective as it is deemed not to infringe on the rights of the involved parties during the process of developing a contract (Bridge, 2013). It ensures that there is maintenance freedom, which is highly essential especially in the delivery of services and goods.
The International Contract of sales of goods carried out internationally governs any contracts that are held, amidst those businesses that are privately owned, but excludes sales made to customers and sales made in a form of services. According to Guzman (2008), it applies to contracts held for the sale of various goods among parties that have their businesses in different states. The Contract also applies when the private international law rules direct at the laws of the contracting state are applied. The International Contract may be used when involved parties consider it to provide the desired quality.
However, the International Contract also applies to matters that relate to the sales of goods made internationally. An example of this issue is the legitimacy and legality of held contracts and the effects that come about due to contracts concerning the properties that are sold falling outside the extent of the meeting. Secondly, the International Contract looks at how the used contracts are formed. The conclusion is made by exchanging an offer with an acceptance. Thirdly, another part of the International Contract provides obligations that each party in the contract is supposed to have.
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Obligations given to sellers include the delivery of goods with conformity when looking at the stipulated quantity and quality according to the contract to be followed, related documents, and the transfer to be made. According to Schlechtriem and Butler (2008), among obligations given to the buyers, there are making payments and ensuring they take the delivery of goods. It also provides some common rules with regards to the remedies to be made if a breach of the contract occurs. The party that has been hurt may ask for the performance of the agreement, but claims for damages, or ask for ceasing the contract when a fundamental breach occurs.
Other rules of the International Contract work by regulating how risk is passed down, defining the anticipated level of a contract being breached, managing damages and setting exceptions for the performance of a contract. Notably, while the International Contract may allow for the freedom of contract formation, different countries may hold on a declaration that requires a written form of all contracts.
The International Contract that relates to the sale of goods provides general provisions, which are divided into articles. The first article is Article 25. According to Schwenzer (2010), Article 25 provides that, if one party among the parties commits a breach of the contract, the breach is only fundamental if it leads to a detriment for other involved parties and essentially deprives them of what is guaranteed to them by the contract. The only exception is if the party involved in the breach could not foresee such a result in any way. The other exception is if another responsible person could not be able to foresee such a result if put under such a circumstance.
The second article is Article 26. Schwenzer (2010) argues that Article 26 provides that in the case of any avoidance of a contract, it will be very effective if all other involved parties are notified. The third article is Article 27. According to Article 27, unless a different case occurs, which is expressly described in the contract, a notice, a request, or any other form of communication made by any given party should be in line with this agreement. Moreover, it should be passed by the means that are appropriate to the circumstances at hand, in the case of a delay or error in transmitting the communication or the failure in the communication that would not in any way deny any of the parties to the contract a right to be able to rely on the provided communication.
According to Schwenzer (2010), the fourth important article is Article 28. According to Article 28, if the contract held by parties requires any party to make certain actions to perform any obligation, the court of law is not allowed to enter the ruling of a given performance. The only exception is if the court of law does it on the basis of the laws it has with respect to the sales contracts, which are similar to the given contract but are not monitored by this contract.
Article 29 is also considered very significant in international laws pertaining to commercial activities. According to Schwenzer (2010), the article paves the way for the concerned parties to modify or terminate the contract through an agreement. There is also a provision in the article that states that any concluded agreement can neither be terminated nor modified.
How International Contracts Relate with the Private International Law and the Existing Domestic Law
The International Contract applies to transactions that are made internationally. Nevertheless, it is not an alternative to the private international law for contracts that would otherwise fall within the scope of the application of this law. Contracts held internationally that fall outside the application scope of the International Contract, as well as contracts that are subject to given choices, which are valid from the viewpoint of other existing laws, would not be a part of the International Contract, according to Mavroidis (2008). Contracts for sales, which are purely domestic, are in no way affected by the International Contract and, hence, are always regulated by domestic law.
Obligations Given to the Seller
Obligations given to a seller are described in articles 30 and forth of the international laws with regards to the sale of goods. Krugman (2008) reveals that Article 30 provides that a seller is expected always to deliver goods, surrender all the required documents that relate to the delivery, and convey the chattels for the delivered goods that are required by the agreed contract. The second article for the obligations is Article 31. Article 31 regulates the situation when a seller is not expected to do a delivery of goods to any other place. According to Debattista (2008), the obligation presupposes being able to handle the required goods to the first carrier who will later deliver them to a buyer in the case a contract of sales involves the carriage and handling of goods. The second obligation provided for in Article 31 is the placement of goods at a point where the buyer requested for disposal.
Risks in the International Trade
Domestic legal minds conflict concerning the ways international trade should take place. The way conflicts are resolved, and legal systems are applied in international trade should be understood by both lawyers and judges. The United Nations held a convention in 1980 whose main purpose was to come up with uniform laws that would be used as guidelines for international commercial activities. The convention aimed to come up with unified rules and regulations that all countries would use to carry out cross-border trading activities. Obviously, trading countries have always experienced numerous conflicts in their international trades. The International Sales of Good involves risks that if left unhandled may cause considerable conflicts between the states and, more specifically, the merchants of the countries involved (Antrais, 2015).
Comprehending the risks in trade between traders gives a better stand for a trader in international trade and helps to understand that the business is protected by the International trade law. Risk in the trade can be the case when received goods differ with what it was paid for. Vannoorenberghe (2014) defines the passing of risk in relation to a buyer as receiving goods, which were damaged by various factors either generated by the seller or occurred during transportation. As a rule, in the international sales, the problem in the trade does not consider how or what caused the risks but what happens when the risk is passed to the buyer (Vannoorenberghe, 2014). The risk of goods passed to the buyer can be made only through damages or deterioration of a product while in transit.
Risks are only evaluated in relation to the agents that are likely to cause any loss or damage. The economic risk also cannot be regulated since the causes are far independent of the goods being passed between the parties. In international trade, risks are evaluated in three different theories. Risk is passed to the buyer at the time of concluding the contract between him or her and the seller. It is true even with the argument that the risks with goods are still the responsibility of the seller until the goods are passed to the end-buyer. Another theory states that risk can be passed to the buyer through the property right. Finally, a theory states that delivering goods by a seller means passing risks to a buyer (Antrais, 2015).
With all factors involved in the trade, any damages or losses are prone to occur when goods are transferred from a seller to a buyer. Therefore, it is important to take note of the rules that regulate the transportation of goods especially when long-distance and shipping are involved. Chapter IV in Part III of the CISG takes care of traders; it provides rules concerning the passage of risks. When international traders are getting into a trade contract, they can choose which law best suites them in their trade. However, international law protecting international traders is useful in the determination of a point when risk is passed from a seller to a buyer (Bridge, 2013). It is important to note that when a risk occurs during the transportation of goods, one of the parties will have to take responsibility. International law regulates the passing of risks. For an instant, if evidence shows that damages or destruction of goods happens when they are still in the possession of a seller then the seller will have to take responsibilities. On the other hand, in the case of the buyer’s possession, if any damages occur, the party will have to take responsibility for the goods, for instance, the payment of goods.
Advantages of the CISG
With its simplicity, practicality, and clarity, the CISG makes it easy for merchants to acquire a good understanding of the requirements since it does not include any complicated legal theories or legal shorthand. This fact helps to avoid the chances of a trader becoming confused and making a different interpretation. Where the two cases were used, a clear definition was provided in order to erase any doubts of the trader. The contract is usually written in a language clear to businessmen with practical details for their easy understanding. Another advantage is that about 80 countries of the world today abide by the CISG leaving behind the states that do not, especially when it comes to trading with the rest of the world (Ferrari, 2012). In terms of the interpretation and application of the contract, all countries are unified in their understanding. Scholars who have done most commentaries have made this possible by their literature work. More endeavors are done as long as conventions are being developed; this fact keeps making the CISG more and more certain and uniform.
Another advantage is that the Contract managed to improve the previous law that governed the international trade, which eliminated all clauses that were unfavorable making it free of any shortcomings. The CISG is also neutral concerning the parties involved in the business. Some tricky issues that may bring conflicts in the trade have been addressed in this law. The International Contract has been adjusted with time making it relevant to the current trend and modern business practices. It has also been made available to the society in different major languages, including English, French, Chinese, Arabic, Russian and Spanish (Ferrari, 2012). Even with the large international trade, the CISG can be applied for making it more advantageous. Where other laws are involved, the international law favors neither the civil law nor the common law of a country of any involved party. Finally, it has provisions concerning the cases of how one party can hold goods from another party making it hard for the involved person to engage in shrewd activities in their trade.
Disadvantages of the CISG
Over the years, the law has been experiencing changes that cause additional uncertainty in the present users and can cause the same in the future. For uniformity purposes, the law introduces the foreign implementation for every country that is participant causing some confusion in some member countries since the local legal procedures seem favorable to the traders. Diverse traditions and interpretations become a threat to the convention that makes and amends the CISG. Although the law has been made available in the six major languages, it is not equally authentic to these languages making it not equally fitting for the users. The local courts in the countries that participate in the law treat it casually making their domestic law more important, especially when resolving an international traders’ conflict (Antrais, 2015). Therefore, the Contract has been denied its power in some participant countries. Finally, one major issue announced by many users is that the CISG is an international law that the local legal authorities were made to apply.
A qualitative research method was employed in carrying out research in this paper. The study used content or thematic analysis. Here, there were several identified patterns of information that were analyzed using the themes that emerged (Krippendorff, 2013). The most important themes that could assist in answering the question at hand were identified and organized into a pattern. The themes were then used as categories that could be further analyzed. The coding categories that were used as the key themes were derived directly from the data of the literature review. The literature that was reviewed was a rich source of information for the research concerning diverse perspectives and stands held by authors with regard to the International Contract of sale of goods.
The qualitative method was chosen since it allowed presenting the truth as perceived by people. Qualitative tools reflect the reality of the social world as revealed by the respondents; in this case, the information recorded by previous authors. The method can be used in order to analyze the qualitative aspects of the social world and erase the idea that all concepts must be quantified in order to be objective (Krippendorff, 2013).
Qualitative techniques affirm that the reality of the social world can be received from social beings, which have either experienced the situations or have been in touch with the people who faced the issue in question. The content analysis is a very flexible technique of studying the text data; it is one of the reasons why it was chosen. It can be used to reveal the data through analytic approaches such as intuitive, impression, systematic, and strictly textual data analysis (Ezzy, 2002).
One of the major limitations of the method is the fact that it lacks a definite procedure and approach; this factor limits its use.
Results and Analysis
The International Contract of Sale of Goods provides the protection for different issues of the process, including economic, legal, and social aspects of the trading process. It contributed towards the removal of any legal obstacles that would otherwise hinder international trade and prevent business people from developing their activities. International rules and regulations have worked to promote the positive development of international trade.
Both the common and the civil law have been incorporated in the International Contract of Sale of Goods. This fact makes it more favorable and applicable to many people who desire to prosper in international trade.
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Although a common legal protocol on the sale of goods can be important, there are many instances where its application might not be effective as that many people in diverse regions of the world have different cultures. Individual states have been developing under diverse circumstances. It means that even the laws that would guide them in carrying out their trading activities would be influenced by several principles of their unique national backgrounds. The application of the International Contract in the sales of goods will make many people develop a phobia if they are not inclined in their personal or societal values. Therefore, many people may cause abandoning doing international trade if it follows international guidelines.
According to Article 49 (1) (a) and 64 (1)(a) of the CISG, both a seller and a buyer have significant observances that they are supposed to follow in order to make trading processes a success. The former article stipulates that a seller should perform all the obligations entitled to him or her. It also provides that the failure by the seller to perform them would amount to a fundamental breach and can lead to the buyer declaring the contract being breached. On the other hand, the buyer’s failure to perform all the activities that are given to him or her in the contract would also make the contract fundamentally breached. In this instance, the seller would declare that the contract is avoided. This principle is very significant for people carrying out international trade and businesses. It is one of the principles that would help in making the parties involved more concerned about keeping the contract valid. Statements in the International Contract, for example, ‘goods may have been transported over very long distances,’ discourages parties against initiating the termination of contracts. From this example, it can be understood that there are a variety of remedies that have been applied to resolve disputes and make sure that one party does not overburden the other by the wastage of time and resources if, at times, they feel they would want to terminate the contract.
The concept, the fundamental breach has been used as the pivotal concept that reflects the responsibility of the parties involved in the agreement to uphold the agreed deal and ensure its completion. In case a party wants a termination, there must be a channel that they should use.
One of the significances of international law is that it is flexible. For instance, article 6 of the CISG explains that the parties involved in any trading pact could vary the effects of any provisions concerning what they can deem fit for them. In addition, the parties may define certain concepts of the contract such as conditions if they would find it necessary to do it. They can classify what will be considered a fundamental breach. The parties involved in the business activities have a right to set what will be determined detrimental in their trading activities and thus will be judged according to their regulations. It is one of the major advantages of the International Contract of Sale of Goods. Another advantage of the Contract is the fact that articles 47 (1) and 63(1) provide more flexibility by asserting that parties can extend the deadline for the other party in the case they require more time for fully fulfilling their part of the contract. Consequently, only because of the non-completion of activities during the added time, a party can declare the contract as being avoided.
Contrary, different challenges might crop up when one would want to apply international trading laws. Some problems might be created for domestic judges and lawyers. There are many issues that they are supposed to know so that they can claim to be prepared to deal with the arising issues concerning international trade. Therefore, it interferes with international trade and makes it a necessary burden. For example, there are certain complicated legal concepts that they are needed to be acquainted with. However, the legislators may not have dealt with the issues that required the application of such issues. Therefore, such situations complicate their work and may even deter them from applying international concepts when resolving the conflicts.
Because of the globalization era, many issues have cropped up as a result. For example, there are faster methods of communication such as the Internet. The World Wide Web has made the world reduced to a global village. Every country would want to engage in trade relations with other countries. In addition, legal barriers have been removed; businesspeople in the less developed countries have wished to trade with other business people from all over the world. The trade regulations of different states differ from each other. Laws and jurisdictions of carrying out business are different for every one of them. Consequently, they are unfamiliar and non-uniform. Sometimes, this difference creates a challenge when people from different parts of the globe want to carry out business activities with their counterparts from elsewhere. Therefore, it is imperative to make sure that the laws are harmonized in order to make trading activities smooth. Traders have now been exposed to trading activities with other parties of wider areas of jurisdiction, which have unfamiliar and non-uniform laws. There are many legal issues that are likely to face the traders who engage in international trade. The foreign-based legal system affects international trade, especially for the parties that are not used to them. As a result, there are many challenges and problems formed in such scenarios. For instance, in the case there are disputes that arise from any of the processes, it becomes difficult for parties to resolve their conflicting situations. In such cases, traders can be able to deal with issues only if the legal system has been harmonized. It will involve shaping the international trading legal system so as to correspond to the model of the international mechanism. The Uniform sales international contract would form a basis, on which harmonious resolving of disputes can be done. Moreover, the International Contract of the Sale of Goods would work to lessen the risks associated with the sale of goods.
From another insightful perspective, the traders will be safe from any uncertainty that would befall them if they are to meet new rules and regulations, following cross-border trading activities. This uncertainty can be dealt with when the peculiarities of different countries and various national laws are eliminated by their harmonization. International trading laws should be able to incorporate and integrate the diverse principles and cultures of the respective nations subscribed to them. There should be a formation of a uniform set of commercial rules and regulations that would ultimately be feasible in the international trading transactions.
One of the key advantages of the international legal commercial law is the fact that it is simple, practical and clear. For example, it is usually easier for traders to be understood as the information contained is not complicated. The shorthand information, which might be prone to misinterpretations, has been avoided, making the Contract more favorable to businesspeople since they can understand it quickly. The CISG has been written while providing practical and detailed information. International law has been created with both buyers and sellers in mind. Both parties have been considered in such a way, and none has been favored at the expense of the other.
The international sale of goods is a very important phenomenon that ought to be governed by proper laws, especially in the modern era. The process of embracing friendly laws that govern international transactions is crucial, especially due to the increased communities’ integration caused by globalization. In the contemporary world, it is highly common to find a person ordering goods of interest from another country that he or she seems to have a superior production system. Thus, based on earlier similar cases, there has been a rise in fraudulent activities, delivery of fake or substandard goods, and delivery of such goods not on time. Therefore, the level of the occurrence of such cases has prompted the establishment of stringent laws concerning international transactions between individuals and businesses in different countries. Such laws tend to make the seller, the carrier, and the buyer of a product to ensure there is improved transparency during the whole transaction process. However, there still exists a gap between the 1979 Act and the CISG, which is acting as a major impediment towards a realignment of the rules. Therefore, the international business community needs to harmonize such rules in order to improve its efficiency. Thus, this paper sought to research whether international laws are relevant in modern society or not. From the research, it can be ascertained that the international commercial laws are plausible and feasible in the modern globalized world.