Global Sales and Contract Law is the product of a comprehensive research project conducted by a research team at University of Basel from 2007 until 2011 using the functional comparative methodology. As the title of the book shows, the authors placed particular emphasis on international sales laws by analysing non-binding and binding uniform law instruments, particularly the United Nations Convention on Contracts for the International Sale of Goods (CISG). Functional comparative methodology is the basis of wide analysis of materials in this book.
The book consists of 13 parts and 51 chapters. The first chapter, Introduction, provides an explanation as to the aim and structure of the book.
Part I contains four chapters, which examine the development and modern practice of sales law. It provides an overview of the historical development and sources of domestic sales laws in different legal systems such as the common law, continental Europe, Ibero-American, African, Middle East, East European, Central Asia and East Asia legal systems. In addition, it presents an overview regarding adopted binding and non-binding uniform laws such as the CISG, UNIDROIT Principles of International Commercial Contracts and Principles of European Contract Law. Chapter 4 discusses choice of law rules in international contracts. The most significant chapter in this part of the book is Chapter 5 on a Global Sales Law Survey. The survey mainly focuses on the CISG by addressing the following issues: the number of CISG cases, familiarities with the CISG, exclusion of the CISG, choice of law clauses, specific contracts and dispute resolution clauses in international sales.
Part II contains three chapters, which discuss the ambit of sales law. It outlines the legal framework of sales law under uniform law, and in common law and civil law jurisdictions. It then discusses the ‘concept of goods’ by considering tangible and intangible goods in Chapter 7. This part further examines the boundaries of sale contracts as distinct from contracts for services.
Part III discusses formation of contract in six chapters. It deals with essentials of formation of contract by evaluating the doctrine of offer and acceptance, and by examining modern forms of contract formation. It considers formation of the contract through electronic communication in Chapter 11 and standard terms contracts in Chapter 12. The book also discusses the law of agency and highlights its importance in modern commercial transactions in Chapter 13; and in the final chapter of this part, the authors briefly examine the issue of modification of contract.
Part IV consists of eight chapters on issues affecting the validity of contract. It starts with general remarks as to the notion of validity and sets out a uniform laws approach to this area of general contract law. It subsequently considers the fundamental issues in this context such as capacity, form requirement, mistake, fraud, duress, illegality and immorality, unconscionability and unfair advantages each under a separate chapter.
Part V examines negotiation and pre-contractual liability in three chapters evidencing a great diversity among different legal systems in this respect. The authors examine the basis for pre-contractual liability and illustrate the positions of various legal systems. In addition, they take into account specific duties in the process of negotiation, such as duty of providing information and confidentiality.
Part VI focuses, in two chapters, on construction of contracts. It analyses both general and special rules of interpretation of contracts by assessing common law, civil law and uniform law instruments in Chapter 26. In particular, it evaluates subjective and objective criteria for interpretation of contracts. This part also devotes one chapter (Chapter 27) to the role of practices and trade usages in interpretation. It examines the positions of Civil Codes, Commercial Codes and Sale of Goods Act, which have adopted practices and usage as legal sources for interpretation of party conduct and the content of the contract. Moreover, it highlights the relevance of the International Commercial Terms (INCOTERMS) in this respect.
Parts VII and VIII contain ten chapters exploring the obligations of the seller and the buyer. As far as sales law is concerned, these two parts are of particular importance. The authors critically analyse the concept of delivery and conformity of the goods in light of common law, civil law and international uniform law particularly the CISG. In addition, they discuss examination of the goods and documents involved in international sales. They also include a specific chapter (Chapter 33) dealing with the CISG approach in relation to intellectual property rights. In considering the obligations of the buyer, the authors first elaborate issues pertaining to payment such as different methods of payment, time and place of payment in Chapter 36. They then illustrate the buyer's obligation as to taking delivery. In this context, references have also been made to Sale of Goods Act 1979, Uniform Commercial Code (UCC) and INCOTERMS.
Parts IX and X, through three chapters, consider passing of risk and title. The authors place particular emphasis on transfer of risk in cases in which the INCOTERMS are incorporated into sale contracts. Furthermore, they discuss the position of the CISG in which the transfer of risk is connected to delivery and the concept of ‘hand over’. The authors also examine situations where goods are sold in bulk and where goods are sold in transit. In examining the transfer of title in sales contracts, the authors evaluate different approaches in different legal systems as to when title passes. In particular, they explain the consensual and delivery approaches; and in Chapter 40, they examine the transfer of title by a non-owner.
Part XI includes nine chapters, which discuss remedies for breach of contract. It provides a general overview in relation to the framework of the law of remedy in different legal systems. It comprehensively examines various types of remedies such as avoidance, specific performance and damages. The authors discuss both traditional and modern approaches with respect to breach of contract, and address the controversial issue of specific performance by demonstrating divergent views in common law, civil law and international uniform law systems. Chapters 44 and 47 examine issues that arise on questions of avoidance and damages in sale laws. Exemptions, such as force majeure and hardship situations, are examined in Chapter 45. The obligation to pay ‘interest’ on a due sum is elaborated in a separate chapter (Chapter 46). Chapter 49 deals with concurrent remedies.
Part XII examines the unwinding of contracts (Chapter 50) followed by the final chapter in Part XIII on the limitation of actions. In the former, the authors discuss tort law, unjust enrichment and restitution. In the latter, they first explain the complexity caused by national law on the law on limitation of actions. Then they explore international initiatives by identifying the extent to which uniform instruments have minimized this complexity.
The book is remarkable, and perhaps unique, in a sense that it provides in one source the legal arguments and discussions pertaining to almost 60 jurisdictions in the fields of both contract and sales laws. Literature, cases and statutes from all the jurisdictions will make the book an indispensable source for references. It is an invaluable source for both academic and practitioners alike.