Abstract

It is necessary to present that the UNIDROIT principle can be applied to international commodity sales contracts through arbitral award on the limits of application of CISG, and to examine how it is applied. In the following, we will examine the applicability of the UNIDROIT principle as a supplement for defects in Article 7 of the CISG. The CISG is a hard law as a convention, but the biggest feature of the UNIDROIT principle is that it is not a convention like the CISG, so it does not need to be domesticized through ratification procedures in each country, and it is non-binding and soft law. The CISG can be legalized domestically through ratification by the state, but the UNIDROIT principle cannot be legalized domestically through ratification. This characteristic allows the UNIDROIT principle to define matters wider than CISG. In addition, the UNIDROIT principle is based on universality and equity in domestic transactions, so it is highly applicable. Through a comparative legal review of the CISG’s defect supplementation regulations, we intend to clarify the defect regulations to promote predictable application of the law to international transactions with high uncertainty. The principles of CISG and UNIDROIT can be seen as a representative unified law applied to international commodity sales contracts. To this end, a comparative analysis was conducted with the UNIDROIT principle’s defect supplementation regulations, and as discussed in the attitude of the arbitral award, this attempt can play a role in finding a solution to the extent that the UNIDROIT principle has not been resolved by CISG. Therefore, in order to adapt the Convention to new needs and to develop each arbitration case according to the practical situation through analysis, the interpretation and defect supplementation of the Convention will be an important means of UNIDROIT.

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