Transcript International Sales - Lectures: Section 1

INTERNATIONAL SALES LAW - seminar 2004
ISL
I
ISL: objectives, functions and structure
II
Management of information on ISL
III
Contractual Risk Management in Transnational Sales Transactions
IV
Management of risk of contractual disputes
V
Management of risk of contract breach
VI
Management of risk of loss of or damage to the goods
VII
Management of risk of changed circumstances
VIII
Case study
IX
Case studies
ISL
ISL: objectives, functions and structure
Objectives
I
GOAL:
II
III
Learn to create good sales contracts
by managing the risks involved with the transaction
IV
HOW?
V
1) Know the objective and the risks for the transaction
VI
2) Know the law, its default norms and its limits
VII
VIII
IX
3) Know the possibilities and limits of contracting
ISL: objectives, functions and structure
Transnational sales transactions
ISL
I
II
III
Finance C
Sales C
IV
V
TST
VI
VII
Insurance C
VIII
IX
Transport C
ISL: objectives, functions and structure
Transnational sales contracts
ISL
I
II
III
Sales C
Finance C
IV
V
VI
VII
Insurance C
VIII
IX
Transport C
ISL
ISL: objectives, functions and structure
Some risks connected to a transnational sales contract
I
II
III
Negotiation risk
Risk of contractual
disputes
Information risk
IV
V
VI
Risk of product
liability
Risk of changing
circumstances
Risk of nonperformance
Sales C
Risk of delayed
performance
VII
VIII
IX
Risk of damage to
or loss of the goods
Risk of nonconforming
performance
ISL: objectives, functions and structure
Legal framework for international sales contracts
ISL
I
II
III
Transport
law
Private international law
Customs
law
Procedural
law
Securities & Competition
execution law
law
International
Sales
Contract
Tax
law
IV
Insurance
law
Product
liability law
V
Property
law
Intellectual
property law
VI
Etc.
Etc.
VII
VIII
IX
CONTRACTING
CONTRACT LAW
SALES LAW
ISL
ISL: objectives, functions and structure
Sales law framework for Nordic sales contracts
I
II
2)
International
Sales
Contract
Inter-Nordic sales
transactions
III
01.06.200112.03.2003
12.03.2003 Nordic
solution
CISG
IV
V
ISLANDIC law:
1)
DEN-FIN-NOR-SWE law:
National Sale of Goods Acts
VI
VII
VIII
IX
CONTRACTING
CONTRACT LAW
SALES LAW
ISL
ISL: objectives, functions and structure
Sales law framework for international sales contracts
I
II
Inter-Nordic sales
transactions
III
International
Sales
Contract
IV
V
International sales
transactions
CISG?
PESL?
National sales law?
VI
VII
VIII
IX
CONTRACTING
CONTRACT LAW
SALES LAW
ISL
ISL: objectives, functions and structure
Contract law framework for international sales contracts
I
II
National
lex contractus?
III
International
Sales
Contract
A-national
lex contractus?
lex mercatoria?
IV
PECL ?
UPICC ?
CENTRAL TLDB ?
V
VI
VII
VIII
IX
CONTRACTING
CONTRACT LAW
SALES LAW
ISL
I
II
III
ISL: objectives, functions and structure
Contracting framework for international sales contracts
Tailored contract terms
Standard contract clauses
Standard
contract terms
IV
V
Contracting
standards
VI
IX
For example:
- The ICC
Model International
Sale Contract
- ICC Force Majeure and Hardship Clauses
- ORGALIME S 2000
For example:
- Incoterms 2000
- NL 01 E
- ICC Uniform Customs and Practice for
- The Institute Cargo Clauses
Documentary Credits (UCP 500)
- ICC Rules of Arbitration
VII
VIII
International
Sales
ContractFor example:
CONTRACTING
CONTRACT LAW
SALES LAW
ISL
ISL: objectives, functions and structure
Structure of international sales contracts
I
II
TYPES OF LEGAL NORMS
REGULATING THE CONTRACT
III
IV
V
VI
VII
VIII
IX
INDIVIDUAL
CONTRACTUAL
NORMS
STANDARD
CONTRACTUAL
NORMS
MANDATORY
LEGAL NORMS
DEFAULT
LEGAL NORMS
ISL
ISL: objectives, functions and structure
Structure of international sales contracts
I
II
TYPES OF LEGAL NORMS
REGULATING THE CONTRACT
III
IV
V
VI
VII
VIII
IX
MANDATORY
LEGAL NORMS
INDIVIDUAL
CONTRACTUAL
NORMS
STANDARD
CONTRACTUAL
NORMS
(contractual
default legal norms)
DEFAULT
LEGAL
NORMS
Designated
default legal norms
Optional
default legal norms
(legal orders)
ISL: objectives, functions and structure
Structure of international sales contracts
ISL
I
MANDATORY LEGAL NORMS, DEFAULT LEGAL NORMS,
STANDARD CONTRACT NORMS
II
III
IV
V
and INDIVIDUAL CONTRACT NORMS:
Interpretation
Tailored
guidelines of the contract terms
contract standards
Standard
contract clauses
VI
VII
ORDRE
PUBLIC
Standard
contract
terms
Established usages
and/or practices
between the parties
?
VIII
IX
International
trade usage
Law of the contract
CISG
Contracting
standards
PECL, UPICC &
CENTRAL TLDB
LEX
MERCATORIA
ISL
I
II
III
IV
ISL: objectives, functions and structure
Structure of legal normsystems
LEGAL ORDER
UPICC Art. 7.4.4:
”The non-performing party is liable only for
harm which it foresaw or could reasonably
LEGAL NORMS
have foreseen at the time of the conclusion of
the contract as being likely to result from its
non-performance”
CISG Art. 26:
”A declaration of avoidance
of the contract is effective
only if made by notice to
the other party”
V
LEGAL RULES
VI
LEGAL
STANDARDS
OPEN
RULES
VII
VIII
IX
- ”reasonableness”
- ”foreseeable”
CLOSED
RULES
ISL: objectives, functions and structure
Structure of legal normsystems
ISL
I
LEGAL ORDER
II
III
LEGAL NORMS
IV
PECL 1998 Art. 1:106 (2):
V
LEGAL PRINCIPLES
VI
VII
VIII
IX
LEADING
GENERAL
PRINCIPLES
LEGAL RULES
”These Principles should be
CENTRAL
TLDB nr. 60:
LEGAL
interpreted
and developed
in
accordance
with their purposes. In
STANDARDS
particular, regard should”The
be hadaggrieved
to the
party is entitled
to
OPEN
CLOSED
need to promote good damages
faith and for
fairloss caused by the other
RULES
RULES
dealing, certainty in contractual
party’s non-performance of its
OTHER and uniformity
relationships
of
contractual
obligations”
application”
GENERAL
PRINCIPLES
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II Management of information on ISL