UNIT 2: INTERNATIONAL SALE OF GOODS

2.1 History of International Sale of Goods

 Earlier, existence of barter system. Sale of goods started with the introduction of money.

 In 1930, International Institute for the Unification of Private Law (UNIDROIT), an

intergovernmental organization established by the League of Nations initiated efforts on a
uniform law for the international sale of goods. The effort however was interrupted due
to the Second World War.

 UNIDROIT prepared the Convention relating to a Uniform Law on the International Sale
of Goods and the Convention relating to a Uniform Law on the Formation of Contracts
for the International Sale of Goods which were adopted at a Diplomatic Conference in the
Hague in 1964. The Conventions were not widely accepted and faced many criticism
including that they reflected civil law tradition of continental Western Europe.

 With the objective of creating international sales rule that would attract increased
acceptance of the States, the United Nations Commission on International Trade Law
(UNCITRAL) began to study the 1964 Conventions. It revised the two Conventions and
prepared a integrated Draft Convention on Contracts for the International Sale of Goods.
The Convention was adopted unanimously on 10 April 1980 at the UN Conference on
Contracts for the International Sale of Goods held in Vienna that came into force on
1January 1988.

 The United Nations Convention on Contracts for the International Sale of Goods reflects
a wide diversity in legal traditions as it incorporated comments solicited from different
States and organizations.

2.2 Importance of Unified International Sale of Goods

 Clarity in applicable law and similarity in legal solution in case of dispute.

 Promotes legal predictability and security.
 Reduction of legal risk which helps in global expansion of business.
 Reform in domestic sales law.
 Harmonisation of national law.
 Lesser scope in the application of private international law.