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SPECIAL FEATURE: Going International: The Contract Law and CISG

A number of uncertaintines remain despite the promulgation of a new PRC Contract Law.

Issue: March 2001

Keywords (click to search): international trade law trade CISG contracts for sale of goods sale of goods international sales transaction contract law international commercial contracts sales contracts

More than a year ago the new PRC Contract Law came into effect. Even though this law has meant a significant step forward in creating a unified civil code, a number of uncertainties remain, especially with regard to international trade transactions involving foreign parties.

The subsequent Supreme People's Court, Several Issues Concerning the Application of the «PRC, Contract Law» Interpretation promulgated on December 19 1999 helped to clarify a few important issues. However, another major potential problem area remains: The implications from and relations to the United Nations Convention on the International Sales of Goods (CISG), a unified model law that has been genuine Chinese law since 1988.

CREATION OF A UNIFIED LAW

The CISG was designed by the United Nations Conference on International Trade Law and work on the CISG was completed in 1980. Since then more than 50 countries, including major trading nations such as China, the...


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