Cisg and Arbitration Agreement

The United Nations Convention on Contracts for the International Sale of Goods (CISG) is an international treaty that provides a uniform set of rules governing contracts for the sale of goods between parties from different countries. The treaty has been adopted by over 90 countries, including the United States.

One important aspect of the CISG is its provisions regarding arbitration agreements. An arbitration agreement is a contract between parties to resolve disputes through arbitration rather than through traditional litigation in court. Arbitration is often preferred because it is generally faster, less expensive, and more private than court proceedings.

Under the CISG, parties to a contract for the sale of goods are free to include an arbitration agreement in their contract. However, there are certain requirements that must be met in order for the arbitration agreement to be valid.

First, the agreement must be in writing. This can include a separate agreement or a clause in the main contract. The agreement must also clearly indicate that the parties have agreed to resolve any disputes through arbitration rather than through court proceedings.

Second, the agreement must be agreed to by both parties. This means that the agreement cannot be unilaterally imposed by one party. Both parties must have an opportunity to review and agree to the terms of the agreement.

Third, the agreement must be enforceable under the law of the country in which the arbitration is to take place. This means that if the parties choose to have arbitration take place in a foreign country, they must ensure that the arbitration agreement meets the requirements of that country’s laws.

If these requirements are met, the arbitration agreement is considered valid under the CISG. This means that any disputes arising from the contract for the sale of goods must be resolved through arbitration, rather than through litigation in court.

In conclusion, the CISG provides a uniform set of rules for contracts for the sale of goods between parties from different countries. It also allows parties to include arbitration agreements in their contracts, as long as certain requirements are met. If you are involved in international sales transactions, it is important to be familiar with the CISG and its provisions regarding arbitration agreements.