The issues of improvement of Contracts' consideration for International Sale of Goods in International Commercial Arbitrations.
Absztrakt
Relevance and importance of the topic of thesis work. It’s undeniable fact that nowadays United Nations Convention on Contracts for the International Sale of Goods (“CISG”) plays crucial role on regulation of relations in the international sale of goods procedure and it was adopted on 11th April, 1980 in Vienna. The United Nations Convention for the International Sale of Goods is one of the paramount normative legal acts in the field of contract law. For example, it combines different legal systems, because to date, that’s as of 13 February 2021, the CISG has been adopted by 94 contracting states on all five continents which account for at least about 2/3 of world trade. Therefore, it governs unlimited number of international sales contracts around the world. The CISG is probably the most important example of unification of substantive private law in the world, creating a uniform set of substantive rules. Unlike a civil code, the CISG does not claim comprehensive scope. The Convention applies to one type of legal relations – sale of goods. However, in real life, sale contracts are often accompanied by additional clauses that require specific regulation. In particular, it is common practice for parties to insert arbitration clauses in their international sale contracts. The close connection between sale contracts and arbitration clauses poses a question of their unified or separated regulation. Besides that despite the Convention was drafted to regulate contracts for the international sale of goods, it’s considered as a model law to modernize and harmonize national legislation on contracts for the international sale of goods. That's why the Convention has significant effect to states' legislation on international business relations in this regard. Also, it’s known that there are main 4 types of Alternative Dispute Resolution methods, namely, Negotiation, Mediation, Arbitration and Conciliation. It's undisputable fact that nowadays Alternative Dispute Resolution institutions play great role to settle issues on Contracts for International Sale of Goods. Especially International Commercial Arbitrations have priorities over than other ADR institutions and national litigation during resolution of disputes on Contracts for International Sale of Goods. For example its resolution is legally binding for both parties and it's the crucial and main difference than other ADR institutions and parties can jointly choose an expert to be an arbitrator (neutral third party or parties) and its process faster and sometimes cheaper than litigation and those factors are the distinctions between International Commercial Arbitrations and National Litigations. In addition, reputable global arbitration surveys conducted by the Queen Mary University of London do demonstrate that the preferred method of dispute resolution is International Arbitration according to 90% of respondents4. Taking into account the role of arbitration as a natural forum for international merchants, it could have been expected that the CISG would clearly delimit its material scope regarding arbitration agreements. Unfortunately, the text of the CISG is surprisingly cryptic in this regard. The ambiguity of the Convention has supplied arguments both to those supporting its application to arbitration clauses inserted in sale contracts and those favoring application of international or domestic arbitration law to arbitration clauses. The practice of courts and tribunals is also inconclusive, although the majority seems to prefer separation of legal regimes5. Despite International Commercial Arbitrations have positive aspects than other ADR institutions and national litigations in settlement of disputes on Contracts for the International Sale of Goods, International Commercial Arbitrations don't play crucial role in this regard yet. Because, despite nowadays the number of cases using arbitration to resolve civil and commercial disputes in China has been among the highest in the world, in 2020, CIETAC accepted 3,615 cases, with the disputed amount reaching RMB112.1 billion, 508 of which were sale of goods disputes, accounting for 14% of its caseload. It’s not good statistics on CISG in International Commercial Arbitrations.
- Why is the statistics of Contracts' consideration for International Sale of Goods by International Commercial Arbitrations low?!
- Does the United Nations Convention on Contracts for International Sale of Goods have legal issues to consider CISG issues by International Commercial Arbitrations?!
- What types of negative aspects do International Commercial Arbitrations have on Contracts' consideration for International Sale of Goods?!
- How can be improved the Contracts' consideration for International Sale of Goods by International Commercial Arbitrations?! Therefore author emphasizes on the issues of improvement of Contracts' consideration for the International Sale of Goods in International Commercial Arbitrations via scientifically and practically sound proposals at the current thesis work.