GLOSSARY
CISG (UN Convention on Contracts for the International Sale of Goods)
1980 UN treaty governing international B2B sale-of-goods contracts. Applies automatically when both parties are in CISG states unless explicitly excluded — a default many SMEs don't realise governs their PO terms.
The CISG is the United Nations Convention on Contracts for the International Sale of Goods, in force since 1988 with 95+ contracting states (including the US, China, Germany, Japan). It governs formation, obligations, breach, and remedies for B2B sales of goods between parties in different CISG states — automatically, unless the contract explicitly opts out.
Why it matters
Many exporters' standard terms of sale assume domestic law (UCC, BGB, etc.) but the contract crosses borders, putting it under CISG by default. Article 25 (fundamental breach), Article 39 (notice of nonconformity within reasonable time), and Article 79 (force majeure / impediment) often diverge from the domestic regime exporters expect — and dispute outcomes can hinge on that gap.
Related terms
- Force Majeure
- Battle of the Forms
- UCC Article 2