Arbitration Agreement under Cisg

Arbitration Agreement Under CISG: An Overview

The Convention on Contracts for the International Sale of Goods (CISG) is an international treaty adopted by the United Nations in 1980. It seeks to facilitate international trade by providing a uniform set of rules for the sale of goods between parties from different countries.

One area that the CISG addresses is dispute resolution. Specifically, it allows parties to include an arbitration clause in their contract. This means that if a dispute arises between the parties, they agree to resolve it through arbitration rather than through the courts.

Why include an arbitration clause in a CISG contract?

There are several reasons why parties may choose to include an arbitration clause in their CISG contract:

1. Confidentiality: Unlike court proceedings, arbitration is private and confidential. This can be important for parties who wish to keep their dispute out of the public eye.

2. Flexibility: Parties can choose their arbitrator, the location and language of the arbitration, and the rules that will apply to the arbitration. This flexibility allows parties to tailor the arbitration to their specific needs.

3. Expertise: Parties can choose an arbitrator with expertise in the subject matter of the dispute. This can lead to a more informed and efficient resolution of the dispute.

How to include an arbitration clause in a CISG contract?

In order to include an arbitration clause in a CISG contract, the parties must specifically agree to it. The clause should be clear and unambiguous, and should include the following information:

1. The scope of disputes that will be covered by the arbitration clause.

2. The location of the arbitration.

3. The language of the arbitration.

4. The rules that will apply to the arbitration.

It is important to note that parties cannot exclude the application of the CISG by including an arbitration clause in their contract. The CISG will still apply to the sale of goods, but the dispute resolution mechanism will be through arbitration rather than through the courts.

Conclusion

Including an arbitration clause in a CISG contract can be an effective way to resolve disputes between parties from different countries. It offers confidentiality, flexibility, and expertise, and can be tailored to the specific needs of the parties. However, it is important to ensure that the clause is clear and unambiguous, and includes all necessary information.