A Case Study on the Incorporation of Standard Terms under the CISG

Abstract

This study primarily focuses on the cases recently held as to the incorporation of standard terms under the United Nations Convention on Contracts for the International Sale of Goods (CISG). In order to put forward in the most plausible manner the interpretation of the rules on the incorporation of standard terms under the CISG, it particularly deals with the following. First, it describes and analyzes the rules on the incorporation of standard terms under the CISG by examining scholars’ comments, the legal history of the CISG as well as previous cases. A particular emphasis is placed on the requirements for the standard terms to be effectively incorporated into the contract. Second, it introduces two recent interesting cases regarding the incorporation of standard terms. This case study consists of fact findings, judges’ holdings and also provides some criticism on such holdings. Third, it provides legal and practical advice to contracting parties involved in international sale of goods who are interested in concluding a contract under the CISG as a governing law and particularly intend to incorporate the standard terms into their contract. This study overall finds that the offeror who intends to incorporate his standard terms should ensure that his offer clearly refers to them in every way and the offeree has a reasonable opportunity to take notice of the standard terms’ text.