INTERNATIONAL SALES LAW - seminar 2004

1. INTERNATIONAL SALES LAW - seminar 2004 ISL ISL: objectives, functions and structure I Management of information on ISL II Contractual Risk Management in Transnational Sales Transactions III IV Management of risk of contractual disputes Management of risk of contract breach V VI Management of risk of loss of or damage to the goods Management of risk of changed circumstances VII VIII Case study IX Case studies

2. ISL: objectives, functions and structure ISL Objectives I GOAL: II Learn to create good sales contracts by managing the risks involved with the transaction III IV HOW? V 1) Know the objective and the risks for the transaction 2) Know the law, its default norms and its limits 3) Know the possibilities and limits of contracting VI VII VIII IX

3. Finance C Sales C Transport C Insurance C ISL: objectives, functions and structure ISL Transnational sales transactions I II III IV TST V VI VII VIII IX

4. ISL: objectives, functions and structure ISL Transnational sales contracts I II Finance C Sales C III IV V VI VII Transport C Insurance C VIII IX

5. Sales C ISL: objectives, functions and structure ISL Some risks connected to a transnational sales contract I II Negotiation risk Risk of contractual disputes III Information risk IV Risk of product liability Risk of non-performance V Risk of changing circumstances VI Risk of delayed performance VII Risk of damage to or loss of the goods Risk of non-conforming performance VIII IX

6. Securities & execution law Private inter- national law Transport law Procedural law Competition law International Sales Contract Customs law Tax law Insurance law Product liability law Intellectual property law Property law CONTRACT LAW SALES LAW CONTRACTING ISL: objectives, functions and structure ISL Legal framework for international sales contracts I II III IV V Etc. Etc. VI VII VIII IX

7. 2) ISLANDIC law: 01.06.2001- 12.03.2003 CISG International Sales Contract Inter-Nordic sales transactions 12.03.2003 - Nordic solution 1) DEN-FIN-NOR-SWE law: National Sale of Goods Acts CONTRACT LAW SALES LAW CONTRACTING ISL: objectives, functions and structure ISL Sales law framework for Nordic sales contracts I II III IV V VI VII VIII IX

8. International Sales Contract Internationalsales transactions Inter-Nordic sales transactions PESL? CISG? National sales law? CONTRACT LAW SALES LAW CONTRACTING ISL: objectives, functions and structure ISL Sales law framework for international sales contracts I II III IV V VI VII VIII IX

9. International Sales Contract CONTRACT LAW SALES LAW CONTRACTING ISL: objectives, functions and structure ISL Contract law framework for international sales contracts I A-national lex contractus? lex mercatoria? National lex contractus? II III IV PECL ? UPICC ? CENTRAL TLDB ? V VI VII VIII IX

10. International Sales Contract Standard contract terms Contracting standards CONTRACT LAW SALES LAW CONTRACTING ISL: objectives, functions and structure ISL Contracting framework for international sales contracts I Tailored contract terms • For example: • - ICC Force Majeure and Hardship Clauses • Incoterms 2000 • The Institute Cargo Clauses Standard contract clauses For example: - The ICC Model International Sale Contract - ORGALIME S 2000 - NL 01 E II III • For example: • - ICC Uniform Customs and Practice for • Documentary Credits (UCP 500) • ICC Rules of Arbitration IV V VI VII VIII IX

11. ISL: objectives, functions and structure ISL Structure of international sales contracts I II TYPES OF LEGAL NORMS REGULATING THE CONTRACT III IV MANDATORY LEGAL NORMS INDIVIDUAL CONTRACTUAL NORMS V VI STANDARD CONTRACTUAL NORMS DEFAULT LEGAL NORMS VII VIII IX

12. ISL: objectives, functions and structure ISL Structure of international sales contracts I II TYPES OF LEGAL NORMS REGULATING THE CONTRACT III IV MANDATORY LEGAL NORMS INDIVIDUAL CONTRACTUAL NORMS V Designated default legal norms DEFAULT LEGAL NORMS VI STANDARD CONTRACTUAL NORMS Optional default legal norms (legal orders) (contractual default legal norms) VII VIII IX

13. Standard contract terms Contracting standards ISL: objectives, functions and structure ISL Structure of international sales contracts I MANDATORY LEGAL NORMS, DEFAULT LEGAL NORMS, STANDARD CONTRACT NORMS II and INDIVIDUAL CONTRACT NORMS: III Interpretation guidelines of the contract standards Tailored contract terms ORDRE PUBLIC International trade usage IV Standard contract clauses Established usages and/or practices between the parties V VI ? Law of the contract VII VIII CISG PECL, UPICC & CENTRAL TLDB LEX MERCATORIA IX

14. ISL: objectives, functions and structure ISL Structure of legal normsystems I LEGAL ORDER CISG Art. 26: ”A declaration of avoidance of the contract is effective only if made by notice to the other party” II UPICC Art. 7.4.4: ”The non-performing party is liable only for harm which it foresaw or could reasonably have foreseen at the time of the conclusion of the contract as being likely to result from its non-performance” III LEGAL NORMS IV V LEGAL RULES LEGAL STANDARDS VI OPEN RULES CLOSED RULES VII VIII - ”reasonableness” - ”foreseeable” IX

15. ISL: objectives, functions and structure ISL Structure of legal normsystems I LEGAL ORDER II III LEGAL NORMS IV PECL 1998 Art. 1:106 (2): ”These Principles should be interpreted and developed in accordance with their purposes. In particular, regard should be had to the need to promote good faith and fair dealing, certainty in contractual relationships and uniformity of application” V LEGAL PRINCIPLES LEGAL RULES CENTRAL TLDB nr. 60: ”The aggrieved party is entitled to damages for loss caused by the other party’s non-performance of its contractual obligations” LEGAL STANDARDS VI OPEN RULES CLOSED RULES VII VIII OTHER GENERAL PRINCIPLES LEADING GENERAL PRINCIPLES IX

16. Go to section II Management of information on ISL