CISG has too many incosisten provision Essay Example | Topics and Well Written Essays - 1500 words

CISG has too many incosisten provision - Essay Example United Nations Convention on Contracts for the International Sale of Goods (CISG) Susan J. Martin-Davidson, a Professor of Law at Southwestern Law School in Los Angeles, has commented that the â€Å"place of business is not defined in the Convention† which is the foremost important consideration in examining whether or not CISG would apply (Martin-Davidson, 2008-2009, 1). It was said that commentators have proposed that the place of business would refer to â€Å"a permanent and regular place for the transacting of general business† (Honnold, 1989). However, Martin-Davidson says that it is still unclear if such a term would include â€Å"the location of a distributor, or other agent, who participates in the negotiation and performance of the contract† (Martin-Davidson, 2008-2009, 1). Even the final draft of CISG, the delegates were unable to address as to the issue if place of business would apply to â€Å"local agents working on behalf of foreign principals† (Martin-Davidson, 2008-2009, 1). Martin-Davidson also comments that â€Å"matters relating to agency† are not addressed by the Convention and does not also illustrate what â€Å"activities of an agent† would be adequate to establish that â€Å"the agent's place of business† is that of the principal (Martin-Davidson, 2008-2009, 1). ... e closest relationship to the contract and its performance† (Martin-Davidson, 2008-2009, 1), which place is so provided under Article 10 of the CISG and which basically determines the location of parties under Article 1 of the CISG (Bailey, 1999, 300). In Micro Data Base Systems, Inc. v. Dharma Systems, 148 F.3d 649, 653 (7th Cir. 1998), it explained that â€Å"it is not clear whether a relationship linked to the formation of a contract is more or less important that a relationship linked to its performance.† Such provision is even more complex with the proviso that instructs to have a regard â€Å"to the circumstances known to or contemplated by the parties at any time before or at the conclusion of the contract† (CISG Article 10(a)). No suggestion however is offered as to kind of circumstance referred to in such provision (Martin-Davidson, 2008-2009, 1). The sale of goods under the CISG is also said not to have been defined under the Convention (Martin-Davidson, 2008-2009, 1). Although there have been â€Å"scholarly commentary† explaining that â€Å"goods are basically only moveable, tangible objects,† (Schlechtriem, 2005, 28), there were some reported decisions wherein the court had to decide the meaning of such a term (Landgericht, 2001, 1 & Oberlandesgericht, 1991, 1).  This is especially relevant to the application of CISG on the â€Å"information stored in and read by computers† which include both the â€Å"information stored on a disk or in a computer† considered to be â€Å"intangible property† and not as goods (CISG, Article 2(f)), and the so-called â€Å"licensed use of information,† which does not satisfy â€Å"the seller's obligation to ‘transfer the property in the goods’† under Article 30 of CISG (Martin-Davidson, 2008-2009). Such concern however, was