Showing posts from June, 2019

What is the role of "good faith" in the CISG?

The term “good faith” can be interpreted in several manner and it is important to understand precisely what is meant in an international business context to avoid confusion and uncertainty. Article 7(1) of the Vienna Convention (the United National Convention on Contracts for the International Sale of Goods) incorporates the requirement of good faith as follows: In the interpretation of this Convention, regard is to be had to its international character and to the need to promote uniformity in its application and the observance of good faith in international trade. However, this above stipulation in Article 7(1) does not absolve uncertainty. Some have considered that the requirement of good faith only applies in relation to the interpretation of the Convention – an interpretation of such a requirement is understandable on first reading. [1] However, this is a very narrow interpretation and not one that some scholars say was intended by the drafters. It ha