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Which of the following is true regarding Convention on Contracts for the International Sale of Goods (CISG)?

a) It is not applicable to contracts for the sale of goods.
b) It is automatically applied to all international contracts.
c) It requires the parties to choose the applicable law for their contract.
d) It only applies to contracts between merchants.

1 Answer

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Final answer:

The CISG is a treaty that applies to international sales of goods between parties in different signatory countries, typically between merchants, and it applies unless parties choose otherwise.

Step-by-step explanation:

The correct answer to the question regarding the Convention on Contracts for the International Sale of Goods (CISG) is that it only applies to contracts between merchants.

The CISG is a treaty that sets out uniform international rules for the sale of goods between parties whose places of business are in different countries that are signatories to the CISG.

This legal framework is designed to facilitate international trade by removing legal barriers and providing a predictable set of rules.

Option b suggests that the CISG is automatically applied to all international contracts, which is not entirely accurate. The CISG applies automatically to contracts of intern

So, item c, which states, it requires the parties to choose the applicable law for their contract, is not correct because the CISG applies unless the parties decide otherwise. As to option a, this is incorrect because the CISG is specifically applicable to contracts for the sale of goods. Lastly, option d is partially true; while the CISG commonly applies to transactions between businesses (merchants), it can also apply to contracts that do not strictly fall into the category of 'merchant' transactions, provided the parties are based in CISG signatory states, and they have not opted out.

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